2. 140 pF ectronics is an American acturer of electronic equament. The chance matching facility in San Jose, California,

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2 140 Pf Ectronics Is An American Acturer Of Electronic Equament The Chance Matching Facility In San Jose California 1 (55.65 KiB) Viewed 28 times

2. 140 pF ectronics is an American acturer of electronic equament. The chance matching facility in San Jose, California, OF Electronics stribes its ads thropono wareho located in Atlanta, Boston Chic, Danand Los Angeles. In the current distribution the United States partitioned into the market, ad of which is sed by anal warehouse Customers, typically retalt receive directly from the one who is the mart that is in the current distribution system, the customers are to see more and receives delivered from one regional warehouse. The was receive items from the manufacturing fadly Typicaly takes about two weeks to satisfy or placed by any of the one who currently KU prides their customers with a view of about 30 percent. In recent years, significaties in competition and huge pressure from the customers to improve the land reduce costs. To improve the service level and doce costs, KLF would like to consideratami distribution strategy in which the five mona wahuses are replaced with woode that wil siest all customer orders. This was should be one of the gross the company CEO is that whatever distribution reprise KLF will dess the states that are vieressed to about 97 percent Answer the following three question * Adetailed analysis of customer demand in the the market areas reveals the demand in the five regions is very similar that is, it is common i weekly demandesbor the weekly demand in the thermo How does this bervation affect the the new item? To performers anys, you did a typical product, Product AT 21. provides istorical data and includes weekly demand for this product for the last 12 weekschofthe nas in order (placed by awesome factory out spending uwento co $1.25 per unit per the current distribution system, the cost of transporting product from the montacturing facility to a warehouse is given in Table 2-12 gee the column Inbound" Table 2-12 also provides information about transportation cost per a tomach warehouse to the stores in its market arease the column Outbound Table 7-13 provides information about transportation cost per unit product from each warehouses other market resuming this regional warehouse becomes the warehouse Suppose you are to compare the two systems for product on what you recommendation to answer this you should compare and are for the two strategies autuming demands or cording to the storical Gute At you should termine which regional warmhouse will be used as the centralized warehouse dis proposed that in the centrale dirbution strategy that the one with a see who pots will be distributed using Ground Service, which guarantee that products wat De warehouse in three days (05 week of course in this case, transportation cost for hipping unit product from manufacturing facility to the warehouse in the transportation costs increase by SD persent Thus, for instance, shinc one it from the acturing facility to Atlanta will cost $1 Would you recommend this plan You antwer 12 55 TABLE 2-11 HISTORICAL DATA Week 1 2 3 Atlanta 33 4537 Boston 35 4 Chicago 34 122 Dallas 27 42 35 Los 32 54 4 5 15 8 9 10 11 38 30 18 158 47 37 23 55 18 62 55 12 28 22 95 40 51 20 65 55 38 90 60035453 TABLE - TRANSPORTATION COSTS PER UNIT PRODUCT Warehouse Inbound Outbound Atlanta 12 13 Boston 15 13 Chicago 11 13 Dallas 19 13 Los Angeles 12 13 TANE 2 TRANSPORTATION COSTS. PERUNT IN CENTRALCED SYSTEM Warehouse Atlanta Boston Chicago La Angeles AL 13 14 14 5. 12 boston 14 1 8 15 17 Chap 14 13 15 16 Dallas 15 15 15 33 8 Los Angeles 17 17 16 8 13