A German company in the drug sector wants to rationalize its distribution network in France and Spain. The two main opti
Posted: Fri May 20, 2022 7:46 am
A German company in the drug sector wants to rationalize its
distribution network in
France and Spain. The two main options it considers are the
following:
Option 1: Serving markets from two regional distribution centers ,
one in France
and one in Spain. Each center will have its stock directly supplied
by truck from
the central plant in Germany, with lead times of 4 - 5 days.
-
Option 2: Supply the products to the final customer from the
central warehouse
located in Germany. To guarantee competitive service times, the
goods will be
shipped by plane and small break and bulk centers will be set up in
each country.
No stock will be held locally.
Question - Evaluate the options in terms of customer service:
1. Product range
2. Responsiveness
3. Volume flexibility
4. Robustness
distribution network in
France and Spain. The two main options it considers are the
following:
Option 1: Serving markets from two regional distribution centers ,
one in France
and one in Spain. Each center will have its stock directly supplied
by truck from
the central plant in Germany, with lead times of 4 - 5 days.
-
Option 2: Supply the products to the final customer from the
central warehouse
located in Germany. To guarantee competitive service times, the
goods will be
shipped by plane and small break and bulk centers will be set up in
each country.
No stock will be held locally.
Question - Evaluate the options in terms of customer service:
1. Product range
2. Responsiveness
3. Volume flexibility
4. Robustness