Supply Chain Management and Logistics Network
Posting ID: 227180
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Business, Other - Other
KLF Electronics KLF
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.
Part B: Provide an outline of such an analysis; what are the main steps?
Part C: Specifically, what data would you need?
Part D: What are the advantages and disadvantages of the newly suggested distribution strategy relative to the existing distribution strategy?
2. As the Purchasing Manager in a manufacturing firm, you would be expected to identify and know various aspects related to transportation/traffic in order to effectively perform your job. Today, during the staff meeting, your boss asked you
Back to Library Cart
Problem go to solution
Business, Other - Other
KLF Electronics KLF
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.
Part B: Provide an outline of such an analysis; what are the main steps?
Part C: Specifically, what data would you need?
Part D: What are the advantages and disadvantages of the newly suggested distribution strategy relative to the existing distribution strategy?
2. As the Purchasing Manager in a manufacturing firm, you would be expected to identify and know various aspects related to transportation/traffic in order to effectively perform your job. Today, during the staff meeting, your boss asked you
References: How to design a logistics network in 10 steps? (2006). Retrieved February 6, 2009, from http://outsourced-logistics.com/operations_strategy/outlog_story_7990/ Maniezzo, V. (2009). Logistics network. Retrieved February 6, 2009, from http://www3.csr.unibo.it/~maniezzo/didattica/TranspLogistics/2%20-%20Logistics%20Network.pdf Magee, J.F., Copacino, W.C. & Rosenfield, D.B. (1985). Modern Logistics Management: Integrating Marketing, Manufacturing, and Physical Distribution. Published by John Wiley and Sons. Li, L. (2007). Supply Chain Management: Concepts, Techniques and Practices Enhancing the Value through Collaboration. Published by World Scientific. Lock, D. (1998). The Gower Handbook of Management (4th Edition). Published by Gower Publishing, Ltd. Stadtler, H. & Kilger, C. (2004). Supply Chain Management and Advanced Planning: Concepts, Models, Software and Case Studies (3rd Edition). Published by Springer. The Logistics Network: design and planning (2001). Retrieved February 6, 2009, from http://www.ec.ccu.edu.tw/book/chain/slidec/ch2.ppt#1