What’s wrong with Strategic Network Design?
ToolsGroup
NOVEMBER 14, 2017
Editor's note: Due to the Thanksgiving holiday, there will be no blog post next week. The problem with strategic network design is when it accounts for service time but not service level. That is, it accounts for the time it takes to serve customers, but not the probability that a certain percentage of the orders will be delivered within that time. It optimizes the network, but it doesn’t optimize inventory across the network – a shortcut that can lead to a different network once the inventory i
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