What defines logistics network design?

Logistics network design is fundamentally about creating an efficient framework for moving goods from the point of origin to the final customer. The correct answer is rooted in the fact that logistics network design must address the physical layout and organization of the various nodes in the supply chain, including warehouses, distribution centers, and transportation routes.

This design ensures that the supply chain operates as effectively as possible, balancing the cost of transportation with service levels and delivery speed. It encompasses decisions regarding where facilities are located, how many are needed, and what types of transportation methods will be used to best meet customer demands while minimizing costs. This structure directly influences the overall efficiency and effectiveness of logistics operations.

Other options relate to different aspects of a business’s overall strategy but do not define the logistics network design in its essence. Pricing strategies and marketing are concerned with how products are offered and sold, while software tools support logistics functions but do not define the network's strategic structure.