Q1

Your distributor company is under serious threat of closure due to the Covid-19 pandemic affecting your delivery. The management has set 3 main criteria for adopting the optimal distribution network as follows:

• Lower inventory costs
• Lower facility costs
• Fast time to market

1. Compare and contrast ANY FIVE (5) characteristics of the following 2 network designs and decide which is the best option to meet the 3 criteria:

• Manufacturing Storage with Direct Shipping Network
• Distributor Storage with Last-Mile Delivery

Support your argument with appropriate illustration for each distribution design.

(W0RD 700)