Framework of Network Design COMPETITIVE STRATEGY PHASEI Supply Chain GLOBAL COMPETITION INTERNAL CONSTRAINTS Strategy Capital,growth strategy, existing network PRODUCTION TARIFFS AND TAX TECHNOLOGIES INCENTIVES Cost,scale/scope impact. support required,flexibility PHASE II REGIONAL DEMAND Regional Facility Size,growth,homogeneity, COMPETITIVE Configuration local specifications ENVIRONMENT POLITICAL, AGGREGATE FACTOR AND EXCHANGE RATE. LOGISTICS COSTS AND DEMAND RISK PRODUCTION METHODS PHASE III AVAILABLE Skill needs,response time Desirable Sites INFRASTRUCTURE FACTOR COSTS LOGISTICS COSTS Labor,materials,site specific PHASE IV Transport,inventory, Location Choices coordination 8 FIGURE 5-2 Framework for Network Design DecisionsSEIEE AU406 + - 8 Framework of Network Design SCM by J. J. Gao