Determining a least-total-cost-network.

Logistics Strategy

In discussing the formulation of a logistical strategy, authors of your Supply Chain Logistics Management text speak of a four-step process:

  1. Determining a least-total-cost-network.
  2. Measuring service availability and capability associated with the least-total-cost-system design.
  3. Conducting sensitivity analysis related to incremental service and cost directly with revenue generation.
  4. Finalizing the plan. (Bowersox, Closs, & Cooper, 2013, p. 302)

Apply this process to the development of a supply chain for a consumer product.  


Bowersox, D., Closs, D., & Cooper, M. B. (2013). Supply chain logistics management (4th ed.). New York, NY: McGraw-Hill/Irwin.

  • Read Lee, Lee, and Schniederjan’s 2011 article, “Supply Chain Innovation and Organizational Performance in the Healthcare Industry,” from International Journal of Operations & Production Management, volume 31, issue 11, pages 1193–1214.  
  • Read Daugherty, Chen, and Ferrin’s 2011 article, “Organizational Structure and Logistics Service Innovation,” from International Journal of Logistics Management, volume 22, issue 1, pages 26–51.

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