2) Currently, the Brown-Forman Cooperage does not supply oak barrels to one of its facilities, the Canadian Mist Distillery (Collingwood, Ontario, Canada); Canadian Mist currently utilizes an external supplier for those barrels. Canadian Mist is not classified as a "Tennessee Whisky". [Note that some distillers' brands now might not be able to promote themselves as "Tennessee Whisky", and that Brown- Forman Cooperage might be able to sell barrels to competitors as an additional source of revenue in Tennessee.] Perform a supply-chain total cost of supply analysis on the following to compare options:

option a) Continuing to supply Canadian Mist Distillery with its current external supplier.

option b) Supplying the Canadian Mist Distillery with barrels from the Brown-Forman Cooperage

in Louisville, KY, (possibly by expanding capacity at that location, if necessary).

option c) Moving the Brown-Forman Cooperage to a brand-new appropriately-sized location that could supply both the Canadian Mist Distillery and its current existing internal customers (Jack Daniel's, Early Times, Old Forester, and Woodford Reserve), as well as provide capacity for growth to include new external customers. (Details about these various capacity-related options and costs are described below.)

4) For existing internal customers only (Jack Daniel's, Early Times, Old Forrester, and Woodford Reserve , but not Canadian Mist): develop ideal low-cost transportation routes and solutions. Assume that "less than load" (LTL) shipments on a route to multiple customers is possible, especially if an ideal Q or EOQ value is feasible and smaller than a full truckload (TL) shipment for each internal customer. (if one truckload = 250 barrels). Compare mileage and transportation costs for "full-truckload" (TL) vs. "less than load" (LTL) deliveries to each internal customer. Use "weekly costs" for each internal customer to compare different delivery options.

a) Considering daily or weekly demand, and truck capacity limitations, does a "full-truckload" (TL) shipping solution (if one truckload = 250 barrels) to various customers on a route (or routes) produce any advantages, or should various "less than load" (LTL) routes be developed to each internal customer? Should we have daily shipments? Weekly shipments? Or something else? Or should a combination of TL and LTL routes be used? Build scenarios with financial analysis, for each scenario. Make a recommendation.

b) Discuss the trade-offs between transportation costs and delivery (order) batch sizes to each customer. What is your final recommendation to the client for deliveries to each internal customer?

c) Should each distillery (internal customer) develop an EOQ-based inventory control system, or utilize some other inventory management policy for barrels, and why? Provide a detailed explanation.