The goal when designing a supply chain network is tomaximize the firm’s profits whilst satisfying customer needs in terms of demandand responsiveness (Chopra and Meindl, 2010). At highest level the performanceof a warehouse network must be evaluated along two dimensions: a) customerrequirements that are met b) Cost of meeting those customer requirements(Chopra and Meindl, 2010). (Chopra and Meindl, 2010) suggest factors that canbe influenced by the structure of distribution network are:a) Response timeb) Product variety c) Product availabilityd) Customer experience,e) Time to marketf) Order visibilityg) ReturnabilityASML has different customers with different SLA’s, somecustomers have very tight SLA’s, while some customers are willing to waitlonger to receive service and spare parts. With introduction of NXE1systems and for customers who are usingNXE systems, capacity of a warehouse must also be taken into consideration, becausea ASML warehouse is used not only to store service and spare parts but alsostores complete modules of machines before these machines are installed atcustomer location. Once the tools fora NXE system arrive in the warehouse, the logistics demand for space goes up,all these tools and service parts must be stored in the local warehouse, beforea machine is installed at the customer location: One NXE machine requires 20truckloads carrying six containers and 170 crates. “To design an effective networka manager must consider all the factors described in the Figure 4 (table)”given below (Chopra and Meindl, 2010, pp 122).
This table (figure 2) as suggestedin (Chopra and Meindl, 2010) describes framework for network design decisionwhich will help ASML in designing right regional distribution network. Globalnetwork design decisions are made in four phases as described below in Figure2. The first phase of network design can help an organization framing high level of its supply chain. The secondphase is to identify regions where distribution centres will be located, theirroles and capacity. For phase three potential sites can be selected within eachregion where distribution centres will be located . In phase four preciselocation and capacity allocation for each distribution center can be selected(Chopra and Meindl, 2010).
1 NXE platform is the industry’s first production platform for extremeultraviolet lithography (EUVL)