TRL3709
Assignment 2 Semester 1 2026
Unique number:
Due Date: April 2026
QUESTION 1
1.1 Key factors influencing supply chain network design decisions
Theory
Supply chain network design refers to decisions about the number, location and role of
facilities in a supply chain. These decisions are influenced by factors such as service level
requirements, cost efficiency, demand patterns, infrastructure, and product characteristics.
Companies must balance transport costs, inventory costs and facility costs when designing
their network. High service expectations usually require more decentralised facilities, while
cost efficiency often supports centralisation. Infrastructure reliability and product
requirements such as perishability or sensitivity also play an important role in determining
network structure (Chopra 2019).
Application to UHL
Terms of use
By making use of this document you agree to:
Several key factors from thecase study influence UHL’s network design. One major factor is
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1 Key factors influencing supply chain network design decisions
Theory
Supply chain network design refers to decisions about the number, location and role
of facilities in a supply chain. These decisions are influenced by factors such as
service level requirements, cost efficiency, demand patterns, infrastructure, and
product characteristics. Companies must balance transport costs, inventory costs
and facility costs when designing their network. High service expectations usually
require more decentralised facilities, while cost efficiency often supports
centralisation. Infrastructure reliability and product requirements such as perishability
or sensitivity also play an important role in determining network structure (Chopra
2019).
Application to UHL
Several key factors from the case study influence UHL’s network design. One major
factor is service level requirements. UHL must deliver within strict time frames, such
as 24 hours for metro hospitals and 72 hours for rural clinics. This requires a network
that combines central distribution centres with forward stocking locations to ensure
quick response times.
Another important factor is product characteristics. Medical devices and disposables
require strict handling conditions such as temperature control, sterility and
traceability. This limits where products can be stored and requires specialised
facilities with proper compliance systems.
Infrastructure challenges in South Africa also influence decisions. The case
highlights port delays and rail inefficiencies, which affect inbound supply reliability.
As a result, UHL uses a coastal distribution centre as a buffer to manage uncertainty
and protect supply continuity.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 2 Semester 1 2026
Unique number:
Due Date: April 2026
QUESTION 1
1.1 Key factors influencing supply chain network design decisions
Theory
Supply chain network design refers to decisions about the number, location and role of
facilities in a supply chain. These decisions are influenced by factors such as service level
requirements, cost efficiency, demand patterns, infrastructure, and product characteristics.
Companies must balance transport costs, inventory costs and facility costs when designing
their network. High service expectations usually require more decentralised facilities, while
cost efficiency often supports centralisation. Infrastructure reliability and product
requirements such as perishability or sensitivity also play an important role in determining
network structure (Chopra 2019).
Application to UHL
Terms of use
By making use of this document you agree to:
Several key factors from thecase study influence UHL’s network design. One major factor is
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1 Key factors influencing supply chain network design decisions
Theory
Supply chain network design refers to decisions about the number, location and role
of facilities in a supply chain. These decisions are influenced by factors such as
service level requirements, cost efficiency, demand patterns, infrastructure, and
product characteristics. Companies must balance transport costs, inventory costs
and facility costs when designing their network. High service expectations usually
require more decentralised facilities, while cost efficiency often supports
centralisation. Infrastructure reliability and product requirements such as perishability
or sensitivity also play an important role in determining network structure (Chopra
2019).
Application to UHL
Several key factors from the case study influence UHL’s network design. One major
factor is service level requirements. UHL must deliver within strict time frames, such
as 24 hours for metro hospitals and 72 hours for rural clinics. This requires a network
that combines central distribution centres with forward stocking locations to ensure
quick response times.
Another important factor is product characteristics. Medical devices and disposables
require strict handling conditions such as temperature control, sterility and
traceability. This limits where products can be stored and requires specialised
facilities with proper compliance systems.
Infrastructure challenges in South Africa also influence decisions. The case
highlights port delays and rail inefficiencies, which affect inbound supply reliability.
As a result, UHL uses a coastal distribution centre as a buffer to manage uncertainty
and protect supply continuity.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
