1. Relative to the United States distribution network, calculate the cost associated with running the existing system....
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2. Consider the idea of upgrading the Los Angeles warehouse to include a distribution center capable of processing all the volume coming into the United States. Assume that containers coming into Seattle would be shipped by rail in their original containers to Los Angeles. All volume would be unloaded and quality checked in Los Angeles. 18% of the volume would then be kept in Los Angeles for distribution through that warehouse and the rest transshipped by rail to the Kansas City warehouse. The cost to transship to Kansas City would be $0.0018 per CBM. The material sent to Kansas City would not need to go through the “unload and quality check process,” and would be stored directly in the Kansas City distribution center. Assume that the remaining volume would be transferred by truck to the 8 remaining warehouses in the United States at a cost of $0.0220 per CBM.
3. What should be done based on your analytics analysis of the United State distribution system? Should the new Los Angeles distribution center be added? Is there any obvious change that Grainger might do to make this option more attractive?
4. Is this strategically something that Grainger should do? What have they not considered that may be important?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Operations And Supply Chain Management
ISBN: 287
14th Edition
Authors: F. Robert Jacobs, Richard Chase
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