Answers:
The manager must consider the regional tariffs, demand for the product and the total cost while developing the network optimisation model for network design structure.
For example, consider ABC to be a manufacturer of automobiles with worldwide sales. The supply chain manager may consider different factors to meet the demand. One approach is to set up a facility in each region. This approach has an advantage of reducing the transportation costs and avoiding the duties that are imposed on imported products. The main disadvantage of this approach is not utilising the facility completely, as the plants would be set up to meet only the local demand.