Which of the following tools would best aid a company in selecting new site locations for manufactured and distributed stock keeping units (SKUs)?
Which of the following tools would best aid a company in selecting new site locations for manufactured and distributed stock keeping units (SKUs)?
The best tool for aiding a company in selecting new site locations for manufactured and distributed stock keeping units (SKUs) is network optimization. Network optimization focuses on designing and optimizing the entire supply chain network, including site locations for factories, warehouses, and distribution centers. It evaluates various scenarios and trade-offs, considering factors such as transportation costs, inventory costs, and customer service levels to determine the most effective locations. In contrast, Distribution requirements planning (DRP), reorder point (ROP) system, and transportation management system (TMS) are more concerned with managing ongoing operations rather than strategic site selection.
The tool that would best aid a company in selecting new site locations for manufactured and distributed stock keeping units (SKUs) is network optimization. Network optimization is a strategic-level decision-making tool that can be used to design and optimize the entire supply chain network, including the location of factories, warehouses, and distribution centers. By using network optimization, a company can evaluate different scenarios and trade-offs to determine the optimal location for each facility, taking into account factors such as transportation costs, inventory costs, and customer service levels. Distribution requirements planning (DRP), reorder point (ROP) system, and transportation management system (TMS) are also important tools for managing supply chain operations, but they are not specifically designed to aid in selecting new site locations for SKUs. Therefore, the correct answer is D. Network optimization.
DRP is focused on planning and managing inventory levels to meet customer demand, ROP is a tool to help determine when to reorder products, and TMS is used to manage transportation operations. Therefore option D
Distribution network provides the analysis on from where to sell the products
Network optimization is the most suitable tool for selecting new site locations for manufactured and distributed stock keeping units (SKUs).