Distribution network performance evaluated along two dimensions at the highest level:

• Customer needs that are met
• Cost of meeting customer needs

Distribution network design options must therefore be compared according to their impact on customer service and the cost to provide this level of service

Elements of customer service influenced by network structure:

• Response time
• Product variety
• Product availability
• Customer experience
• Order visibility
• Returnability

Supply chain costs affected by network structure:

• Inventories
• Transportation
• Facilities and handling
• Information