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+YLE $ #ATTANI
+ELLEY 3CHOOL OF "USINESS )NDIANA 5NIVERSITY "LOOMINGTON ). KCATTANI INDIANAEDU
6INCENT ! -ABERT #ORRESPONDING AUTHOR
+ELLEY 3CHOOL OF "USINESS )NDIANA 5NIVERSITY "LOOMINGTON ). MABERT INDIANAEDU
!"342!#4
/PERATIONS MANAGERS IN THE PAST THREE DECADES HAVE WITNESSED A PERIOD OF RAPID CHANGE WITH ADVANCES
IN TECHNOLOGY MARKET GLOBALIZATION AND INTERNATIONAL TRADE AGREEMENTS 7ITH AN INCREASING NUMBER
OF DOMESTIC AND INTERNATIONAL COMPETITORS SUPPLY CHAIN DESIGN HAS BECOME A CRITICAL SUCCESS FACTOR
FOR ORGANIZATIONS TO REMAIN COMPETITIVE 'IVEN THE DYNAMICS OF TODAYS GLOBAL BUSINESS ENVIRONMENT
IT IS USEFUL TO PROVIDE A PERSPECTIVE 4HIS ARTICLE SHARES SOME INSIGHTS GAINED FROM OUR INVESTIGATION
OF RECENT CONTRIBUTIONS TO SUPPLY CHAIN DESIGN IN THE CONTEXT OF A LONG HISTORY OF SUPPLY CHAIN DESIGN
EFFORTS 7E DElNE SUPPLY CHAIN MANAGEMENT BROADLY AND CONSIDER THAT WHILE SUPPLY CHAIN DESIGN
HAS BEEN CRITICALLY IMPORTANT FOR MILLENNIA IT HAS EVOLVED OVER TIME 4HE SUPPLY CHAIN DESIGN DECI
SION DOES NOT OCCUR FREQUENTLY FOR AN ORGANIZATION BUT ITS IMPACT IS LONG
TERM 4HE AVAILABILITY OF
NEW TECHNOLOGY AFFECTING MANUFACTURING AND TRANSPORTATION PLUS CHANGES TO INFORMATION SYSTEMS
HAVE INCREASED THE PACE AND mOW OF MATERIALS AND DATA 7HILE THE INTENSITY OF CHANGE HAS INCREASED
IN RECENT TIMES SUPPLY CHAIN DESIGN ISSUES THEMSELVES HAVE EXISTED SINCE ANTIQUITY )N THIS PAPER WE
PROVIDE A HISTORICAL PERSPECTIVE BY HIGHLIGHTING SOME PAST DEVELOPMENTS DISCUSSING PRESENT IDEAS AND
CONCEPTS AND SUGGESTING FUTURE SUPPLY CHAIN DESIGN DIRECTIONS
+EYWORDS SUPPLY CHAIN DESIGN SUPPLY CHAIN MANAGEMENT VALUE CHAIN DESIGN LOGISTICS
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7HAT FORM OF POWER SHALL BE EMPLOYED TO 4HESE EIGHT COMPONENTS ARE HIGHLY INTERRE
RUN THE PLANT LATED MAKING DESIGN DECISIONS CHALLENGING &OR
7HAT SHALL BE THE BASIS OF ITS INTERNAL ORGANI
EXAMPLE (EWLETT
0ACKARD (0 PRODUCES PRINT
ZATION ERS THAT ARE DISTRIBUTED WORLDWIDE USING A POST
(OW SHALL THE LABOR FORCE BE HANDLED PONEMENT PROCESS 4HIS REQUIRES A TIERED SUPPLY
(OW SHALL THE RAW MATERIALS BE TREATED CHAIN IN WHICH VENDORS SUPPLY COMPONENTS TO
(OW SHALL WE DETERMINE THE EFlCIENCY OF OUR (0 MANUFACTURING PLANTS AND DISTRIBUTION CEN
EQUIPMENT TERS THAT CONlGURE PRODUCTS 4HE MANUFACTURED
(OW SHALL THE GOODS BE DISTRIBUTED TO THE GENERIC PRINTER ENGINES UNITS ARE SHIPPED VIA
CONSUMER INTERMODAL BULK CONTAINERS AS 7)0 TO DISTRIBU
4HE SHIFT IN FOCUS FOR SUPPLY CHAIN DESIGN OVER TION CENTERS FOR lNAL CONlGURATION LABELS POWER
THE PAST DECADES HAS BEEN TOWARD SUPPLIER AND SUPPLY SOFTWARE AND DOCUMENTATION PROVIDED BY
SOURCING MANAGEMENT AND PRODUCT AND PROCESS VENDORS BASED UPON DEMAND "ESIDES SHIPPING
CONlGURATIONS )N PARTICULAR QUESTIONS PRODUCTS TO CUSTOMERS (0 PROVIDES PRODUCT SUP
AND REMAIN THE FOCUS OF SUPPLY CHAIN DESIGN PORT THROUGH CALL CENTERS AND PRODUCT TAKE
BACK
ALTHOUGH QUESTIONS AND HAVE EVOLVED TO TAKE FOR WARRANTY AND RECYCLING 4HEREFORE A TWO
WAY
A MORE GLOBAL AND STRATEGIC FOCUS 4HE REMAINING mOW OF MATERIAL AND INFORMATION OCCURS ACROSS ALL
QUESTIONS CONTINUE TO BE RELEVANT ALTHOUGH PER
STAGES OF THE SUPPLY CHAIN 4HIS mOW IS TYPICAL IN
HAPS WITH A MORE TACTICAL FOCUS 7HILE $UNCANS TODAYS WORLD ECONOMY AS NUMEROUS TASKS AND
QUESTIONS ASSIST IN DElNING AN ENTERPRISES PROCESSES ARE PRESENT AT ALL STAGES WITHIN THE SUP
MISSION AND SCOPE THEY ALSO HELP IDENTIFY THE PLY CHAIN ,EE "ILLINGTON AND #ARTER
FOLLOWING MAJOR INTERRELATED SUPPLY CHAIN DESIGN %XHIBIT GIVES AN OVERVIEW OF A TYPICAL MOD
COMPONENTS COMPANIES NEED TO ADDRESS ERN SUPPLY CHAIN AND A SAMPLE OF THE OPERATING
PRODUCT AND PROCESS CONlGURATIONPRODUCT BILL COMPONENTS IT INCLUDES !S ONE QUICKLY SEES A
OF MATERIAL "/- STRUCTURE PACKAGING HAN
MODERN SUPPLY CHAIN IS COMPOSED OF POTENTIALLY
DLINGENVIRONMENTAL REQUIREMENTS ASSEMBLY AND THOUSANDS OF COMPONENTS WHICH INCLUDE MATERI
TEST SEQUENCES PERSONNEL SKILLSEQUIPMENT CAPA
ALS THAT mOW IN AND OUT OF FACILITIES EQUIPMENT
BILITIES QUESTIONS AND THAT MAKE AND MOVE PRODUCTS SYSTEMS THAT MONI
SUPPLIERSSINGLE VERSUS MULTIPLE SOURCES NUM
TOR AND EXCHANGE DATA mOW AND PERSONNEL WHO
BER OF TIERS ALLIANCES VERSUS BIDDING REQUEST FOR PROCESS TRANSACTIONS AND PLAN ACTIONS 'ENERALLY
QUOTE ;2&1= OR REVERSE AUCTION QUESTION AND NO ONE ENTERPRISE PERFORMS ALL THE SUPPLY CHAIN
FACILITIESROLE MANUFACTURING DISTRIBUTION TASKS BUT A NUMBER OF TRADING PARTNERS THAT ARE
WAREHOUSING OR SERVICE CENTER CAPACITY PROCESS
BOTH UPSTREAM AND DOWNSTREAM WORK TOGETHER
ES EMPLOYED LOCATION QUESTION 5SING BOTH MANUAL AND AUTOMATED PROCESSES THEY
INVENTORYSEASONAL AND CYCLE INVENTORY LEVELS MANAGE THE mOW FROM SOURCE TO USE TO TAKE
BACK
RAW VERSUS WORK IN PROCESS 7)0 VERSUS lNISHED
GOODS INVENTORY &') STATUS LOCATION QUESTION 3/-% ()34/2)#!, /"3%26!4)/.3
TRANSPORTATIONMODE OPTIONS INFRASTRUCTURE 7HILE SUPPLY CHAIN DESIGN COMPONENTS SUCH AS
REQUIREMENTS QUESTIONS AND SUPPLIER SOURCING AND PRODUCTION PROCEDURES ARE
MANAGEMENT SYSTEMSPERFORMANCE OBJECTIVES MAJOR TOPICS IN TODAYS MANAGEMENT LITERATURE
MEASUREMENT METRICS OPERATING POLICIES AND THEY HAVE CONCERNED ORGANIZATIONS SINCE ANCIENT
PROCEDURES CHANNEL INCENTIVES AND COORDINATION TIMES #ONSIDER A FEW EXAMPLES FROM HISTORY
QUESTION SUPPLY SOURCE4HE PYRAMIDS OF %GYPT USE
PERSONNEL SYSTEMSKNOWLEDGE BASE SKILL SETS FULLY ILLUSTRATE SUPPLY CHAIN DESIGN ISSUES IN EARLY
TRAINING AND DEVELOPMENT PROGRAMS QUESTIONS TIMES 3UPPLIERS OF QUARRIED LIMESTONE HAD TO BE
AND IDENTIlED AND ARRANGED WITHIN REASONABLE DIS
INFORMATION TECHNOLOGYDATA ELEMENTS CAPTURE TANCE FROM 'IZA 0LATEAU THE CONSTRUCTION SITE
SYSTEMS ANALYSIS AND REPORTING SYSTEMS NEW "ECAUSE BUILDING MATERIALS WERE LARGE AND HEAVY
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