What kind of analysis is used to optimize supply chain network design?

Network optimization analysis is used to optimize supply chain network design because it focuses specifically on determining the most efficient configuration for a supply chain. This type of analysis considers various factors such as transportation costs, facility locations, demand patterns, and inventory management. By utilizing network optimization analysis, businesses can identify the optimal number and location of distribution centers, manufacturing plants, and warehouses, ensuring that the supply chain operates efficiently and cost-effectively.

The approach involves mathematical modeling and simulation techniques to evaluate different scenarios and make data-driven decisions. This type of analysis is essential for achieving a balanced network design that minimizes costs while meeting customer service expectations. In contrast, while cost-benefit analysis and risk analysis are important in their own rights, they do not specifically target the structural and logistical optimization of supply chain networks. Similarly, SWOT analysis (assessing strengths, weaknesses, opportunities, and threats) provides a strategic overview but lacks the focused methodology for analyzing network logistics that network optimization analysis provides.