When designing a network of distribution centers to serve a large market, like the U.S., it is common
to debate the number of facilities to use. Discuss the following.
(a) What arguments would you use to support having many facilities? What assumptions did you make to
support your analysis?
(b) What arguments would you use to support having fewer facilities? What assumptions did you make?
(c) Which business functions (departments) are likely to support each of these positions (i.e., having more or
fewer facilities)?
(d) How does the availability of third-party providers influence your decision?
Sample Solution
