Josephine Mater works for the supply-chain analytics division of Trader Joes, a national chain of specialty grocery
Question:
Josephine Mater works for the supply-chain analytics division of Trader Joe’s, a national chain of specialty grocery stores. Trader Joe’s is considering a redesign of its supply chain. Josephine knows that Trader Joe’s uses frequent truck shipments from its distribution centers to its retail stores. To keep costs low, retail stores are typically located near a distribution center. The file TraderJoes contains data on the location of Trader Joe’s retail stores. Josephine would like to use k-means clustering with k = 8 to estimate the preferred locations if Trader Joe’s was to establish eight distribution centers to support its retail stores. Normalize the values of the input variables to adjust for the different magnitudes of the variables. If Trader Joe’s establishes eight distribution centers, how many retail stores are assigned to each distribution center? What are the drawbacks to using this solution approach to assign retail stores to distribution centers?
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Essentials Of Business Analytics
ISBN: 9781337406420
3rd Edition
Authors: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson, Dennis J. Sweeney, Thomas A. Williams