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A supply network perspective means setting an operation in the context of all the other operations with which it interacts,

some of which are its suppliers and its customers. Materials, parts, other information, ideas and sometimes people all flow through the network of customer supplier relationships formed by all these operations. Supplier Side Demand Side

It helps an understanding of competitiveness. It helps identify significant links in the network. (Downstream and Upstream parts of the network)

It helps focus on long-term issues.

1. 2. 3.

Network Configuration Location Long term capacity management



Vertical Integration can be defined in terms of three factors: 1. The direction of vertical integration. 2. The extent of vertical integration. 3. The balance among stages.

Reasons for Location decision o Changes in Demand

o Changes in Supply

1. The spatially variable costs of the operation 2. The service the operation is able to provide to its customers 3. The revenue potential of the operation

1. Weighted Score Method 2. Centre of Gravity Method

The Optimum Capacity Level