DESIGNING MULTI-SITE OPERATIONS NETWORKS

Abstract

The design and planning of multi-site operations networks requires to find a strategic fit between fulfilling market requirements, considering individual site competencies and minimizing overall network costs. The purpose of this paper is to present and discuss an integrated approach for designing multi-site operations networks based on a qualitative analysis of the dimensions ‘market requirements’ and ‘site abilities’ followed by a quantitative optimization of the resulting production network based on the total landed costs of the manufacturing footprint. The proposed approach is validated by using a firm’s data set consisting of more than 50 product groups and over ten globally dispersed sites that serve a total of eight sales regions. The findings contribute to the understanding of how operations networks may be designed in order to meet market requirements, to consider individual site competencies as well as the overall costs.