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Analyzing customer’s desired service output level. • • • • • Lot size Waiting & product delivery time Spatial convenience Product variety Service backup
2. Establishing objectives & constraints. 3. Identifying major channel alternatives. • Types intermediaries • Number of intermediaries • Terms & responsibilities of channel members -Price policy -Conditions of sale -Distributors territorial rights -Mutual services & responsibilities 4. Evaluating major alternatives • • Economic criteria Control & adaptive criteria