This document discusses distribution networks and demand forecasting in supply chains. It begins by defining distribution as the steps to move a product from suppliers to customers. It then discusses how distribution network design impacts costs and customer service. The document outlines different types of distribution networks like direct shipping, distributor storage, and retail storage networks. It also discusses factors influencing demand forecasts like past demand, lead times, marketing, and competitors. Finally, it summarizes qualitative and quantitative forecasting techniques as well as collaboration best practices for building forecasts.

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3. Serial
No.
Name Roll No. Mail Leader
1. Sohag Hossain 10107478 sohagbbamkt@gmail.com 
2. Md. Zulfikar Haider 10087408 zulfikarhdr@gmail.com
3. Md. Ashraful Islam 10047428 ashraful.ru28@yahoo.com
4. Tania khatun 10217438 tania7438@gmail.com
5. Tusar Ahamed 10117468 tusar09bd@gmail.com
6. Md. Delwar hossain 10087488 delwar_ru007@yahoo.com
7. Md. Atikur Rahman 10087498 atik.bbaru@gmail.com
8. Md Abdul Alim 10027508 alim.ru7508@gmail.com
9. Hossen Soharawordi 10097518 sohagmkt18@gmail.com
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4. 2.Designing
Distribution Networks
4.Demand Forecasting
in a Supply Chain
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6.  Distribution : the steps taken to move and store a
product from the supplier stage to the customer
stage in a supply chain
 Distribution directly affects cost and the
customer experience and therefore drives
profitability
 Choice of distribution network can achieve
supply chain objectives from low cost to high
responsiveness
 Examples: Wal-Mart, Dell, Proctor & Gamble,
Grainger
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7.  Distribution network performance
evaluated along two dimensions at the
highest level:
• Customer needs that are met
• Cost of meeting customer needs
 Distribution network design options must
therefore be compared according to their
impact on customer service and the cost
to provide this level of service
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8. Elements of customer service influenced by
network structure:
 Response time
 Product variety
 Product availability
 Customer experience
 Time to market
 Order visibility
 Return ability
Supply chain costs affected by network structure:
 Inventories
 Transportation
 Facilities and handling
 Information
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9. Response time and Number of
Facilities
Number of
Facilities
Response Time
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10. Inventory Costs and Number
of Facilities
Inventory
Costs
Number of facilities
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11. Transportation Costs and Number
of Facilities
Transportation
Costs
Number of facilities
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12. Facility Costs and Number of
Facilities
Facility
Costs
Number of facilities
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13. Response Time
Variation in Logistics Costs and Response
Time with Number of Facilities
Number of Facilities
Total Logistics Costs
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14. • Manager make two key decisions when designing
a distribution network.
1. Will the product
be delivered to the
customer location
or picked up from a
preordained site.
2. Will product flow
through an
intermediary ( or
intermediate
location)
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15. Manufacturer Storage with Direct Shipping
Manufacturer Storage with Direct Shipping
and In-Transit Merge
Distributor Storage with Carrier Delivery
Distributor Storage with Last Mile Delivery
Manufacturer or Distributor Storage with
Consumer Pickup
Retail Storage with Consumer Pickup
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16. Manufacturer Storage with
Direct Shipping
Manufacturer
Retailer
Customers
Product Flow
Information Flow
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17. Distributor Storage with Carrier
Delivery
Factories
Customers
Product Flow
Information Flow
Warehouse Storage by
Distributor/Retailer
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18. Manufacturer Storage with Direct
Shipping and In-Transit Merge Network
Factories
Retailer
Product Flow
Information Flow
In-Transit Merge by
Carrier
Customers
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19. Distributor Storage with Last Mile
Delivery
Factories
Customers
Product Flow
Information Flow
Distributor/Retailer
Warehouse
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20. Manufacturer or Distributor Storage with
Customer Pickup
Factories
Retailer
Pickup Sites
Product Flow
Information Flow
Cross Dock DC
Customer Flow
Customers
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21. Retail Storage with customer pickup
Retailer
Consumers
RetailerRetailer
Distributor
Warehouse
Manufacturers
Distributor
Warehouse
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22. Distribution Networks in Practice
1. The ownership structure of the distribution
network can have as big as an impact as the type
of distribution network
2. The choice of a distribution network has very
long-term consequences
3. Consider whether an exclusive distribution
strategy is advantageous
4. Product, price, commoditization, and criticality
have an impact on the type of distribution system
preferred by customers
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24.  The basis for all strategic and planning decisions in
a supply chain
 Used for both push and pull processes
 Examples:
 Production: scheduling, inventory, aggregate
planning
 Marketing: sales force
allocation, promotions, new production introduction
 Finance: plant/equipment investment, budgetary
planning
 Personnel: workforce planning, hiring, layoffs
 All of these decisions are interrelated
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25. Hypothetical example of forecasting
Demand for Mercedes E Class
Time
Jan Feb Mar Apr May Jun Jul Aug
Actual demand (past sales)
Predicted demand
We try to predict the
future by looking back
at the past
Predicted
demand
looking
back six
months
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26. 1.Forecasts are
always wrong.
Should include
expected value
and measure of
error
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27. 2.Long-term forecasts
are less accurate
than short-term
forecasts (forecast
horizon is important)
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28. 3.Aggregate
forecasts are
more
accurate
than
disaggregate
forecasts
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29. A company must be knowledgeable about numerous factors that are
to the demand forecast. These are-
Past demand
Lead time of product replenishment
Planned advertising or marketing effort
State of the economy
Planned price discounts
Action that competitors have taken
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30. Under
stand
the
object
ives of
foreca
sting
Integrate
demand
planning
and
forecasti
ng
Identify
major
factors
that
influence
the
demand
forecast
Understa
nd and
identify
customer
segments
Determine
the
appropriate
forecasting
technique
Establish
performance
and error
measures for
the forecast
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31.  Qualitative: primarily subjective; rely on
judgment and opinion
 Time Series: use historical demand only
 Static
 Adaptive
 Causal: use the relationship between demand
and some other factor to develop forecast
 Simulation:
 Imitate consumer choices that give rise to demand
 Can combine time series and causal methods
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32. • Collaborate
in building
forecasts
1
• The value of
data depends
on where you
are in the
supply chain
2
• Be sure to
distinguish
between
demand
and sales
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33. Thanks
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