Proc 5850 Logistics
MID TERM
PROC 5850 Logistics
1. KLF Electronics is an American manufacturer of electronic equipment. The company has a single manufacturing facility in San Jose California. (20 points)
KLF Electronics distributes its products through five regional warehouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current distribution system, the United States is partitioned into five major markets, each of which is served by a single regional warehouse. Customers, typically retail outlets, receive items directly from the regional warehouses in their market area. That is, in the current distribution system, each customer is assigned to a single market and receives deliveries from one regional warehouse.
The warehouses receive items from the manufacturing facility; typically, it takes about two weeks to satisfy an order placed by any of the regional warehouses. In recent years, KLF has seen a significant increase in competition and huge pressure from their customers to improve service levels and reduce costs. To improve service level and reduce costs, KLF would like to consider an alternative distribution strategy in which the five regional warehouses are replaced with a single, central warehouse that will be in charge of all customer orders.
Part A: Describe how you would design a new logistics network consisting of only a single warehouse.
Due to increasing competition in the world, the company has to advance its logistics system. To meet the ever increasing demands of the customers, the company is planning to form a single regional warehouse that will be in charge of the customer orders. Logistics is responsible for the movement of people and materials in the organization. Logistics department of the company decides as to how and when, the raw materials or other finished or semi-finished products should be moved and stored.
If the company plans for a single warehousing system, then it is basically focusing on the centralized
PROC 5850 Logistics
1. KLF Electronics is an American manufacturer of electronic equipment. The company has a single manufacturing facility in San Jose California. (20 points)
KLF Electronics distributes its products through five regional warehouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current distribution system, the United States is partitioned into five major markets, each of which is served by a single regional warehouse. Customers, typically retail outlets, receive items directly from the regional warehouses in their market area. That is, in the current distribution system, each customer is assigned to a single market and receives deliveries from one regional warehouse.
The warehouses receive items from the manufacturing facility; typically, it takes about two weeks to satisfy an order placed by any of the regional warehouses. In recent years, KLF has seen a significant increase in competition and huge pressure from their customers to improve service levels and reduce costs. To improve service level and reduce costs, KLF would like to consider an alternative distribution strategy in which the five regional warehouses are replaced with a single, central warehouse that will be in charge of all customer orders.
Part A: Describe how you would design a new logistics network consisting of only a single warehouse.
Due to increasing competition in the world, the company has to advance its logistics system. To meet the ever increasing demands of the customers, the company is planning to form a single regional warehouse that will be in charge of the customer orders. Logistics is responsible for the movement of people and materials in the organization. Logistics department of the company decides as to how and when, the raw materials or other finished or semi-finished products should be moved and stored.
If the company plans for a single warehousing system, then it is basically focusing on the centralized