Network planning is very essential considering its role in determining the overall physical channel such as plants and warehouses through which materials are usually transformed from their raw form to finished products and then delivered to the customers. The network planning is a multifaceted concept (Zhuge, 2006). As such, there are a set of underlying aspects, among the core being design. Design is a very essential aspect and is often applied when establishing networks for structures such as warehouses. For the purpose of this paper, the intention is to establish a logistic network, which consists of only one warehouse. As such, the current study will aim at describing the approach for designing such a network. The paper will also include the set of information and data necessary to undertake the design and the strategy that would be employed in the network. .
There has been an upfront decision that a single warehouse be built. Given this, the only focus would be on the both the capacity and location of a warehouse, as well as, a determination of the space, which ought to be allocated to each product stored within the warehouse. The very first step to be followed is data collection. The first area of data collection is the location of the retail stores, the existing warehouses, the manufacturing facilities and the suppliers. This would play a huge role given that it will help in establishing the concentration of warehouses, retailers and manufactures in order to determine the feasibility and viability of a given location. As such, the first step would serve as the foundation for the second step. The second area of consideration is the candidate location for the proposed warehouse. Thirdly, data would be collected regarding the products and this includes their sizes, volumes and shapes. Fourthly, information regarding the annual demands, which includes past actuals, as well as, future estimates, along with the requirements of the service levels of the retail stores would have to be collected.
