TRL3709
Assignment 2 Semester 1 2026
Unique number:
Due Date: 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
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +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.
Assignment 2 Semester 1 2026
Unique number:
Due Date: 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
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +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.
