6. Describe the network design currently used at 21st Century. Put yourself in Liu Fengs position. What are the common network designs and the implication for supply chain costs? Regarding 21st Centurys growth strategy, how could the current network design be operated to reduce total logistics cost? Consider the location of the publishers and the possibility of implementing new routes.

7. Map the current network design as a minimum cost problem and calculate total network costs through linear optimization. Which quantities do you order from the three publishers?

8. The 3PL of 21st Century offers Liu Feng the opportunity to expand the contract logistics cooperation. 21st Century can rent a part of the 3PLs warehouse in Beijing. Does it make sense for 21st Century to use a second warehouse? Map the new situation.

9. Liu Feng considers having some shops supply other shops. Thus, the transportation routes of the trucks could be linked to all other shops. Liu Feng thinks that the shops in Shanghai, Beijing, Tianjing, and Qingdao are the most appropriate because they have the most floor space. What would 21st Centurys transportation network look like with these mega cities and the second warehouse? Do you think Liu Fengs idea is feasible?

Lead-time (days) To 11 Shanghai 2 Beijing 3 Tianjin 4 Qingdao 5 Dalian 6 Shenyang 7 Harbin 8 Hangzhou 9 Ningbo 10 Xuzhou 11 Chansha 121 Chengdu 13 Shenzen 14 Guangzhou 15 Kumming 16 Chongqing From Shanghai 0.00 4.14 3.92 4.43 5.52 5.46 6.90 1.38 1.32 2.76 4.14 9.67 5.52 5.54 6.90 9.67 Beijing 4.14 0.00 1.38 2.76 2.83 2.76 4.14 5.52 5.52 2.76 5.52 8.28 9.67 11.05 9.67 9.80 Tianjing 3.92 1.38 0.00 1.29 2.59 3.89 4.54 1.29 2.59 5.22 5.19 4.54 9.09 9.74 9.09 6.38 Qingdao 4.43 2.76 1.29 0.00 3.24 5.19 7.25 0.64 3.89 3.86 5.19 5.31 7.79 8.66 9.23 6.49 Lead-times (days) From Beijing P1 Beijing P2 Shanghai P Shanghai WH Beijing WH 3.19 0.70 3.51 0.90 0.85 3.19 To Demand Shanghai Beijing Tianjin Qingdao Dalian Shenyang Harbin Hangzhou Ningbo Xuzhou Chansha Chengdu Shenzen Guangzhou Kumming Chongqing From Shanghai WH Beijing WH 1.06 3.19 3.19 1.06 3.08 1.08 3.19 2.12 4.30 2.05 4.25 2.12 5.31 3.19 1.06 4.25 1.09 4.27 2.12 2.12 3.19 4.25 7.44 6.38 4.25 7.44 4.23 8.51 5.31 7.44 7.56 8.07 1700 2300 550 650 800 400 900 300 300 650 750 350 1100 400 650 500 Lead-time (days) To 11 Shanghai 2 Beijing 3 Tianjin 4 Qingdao 5 Dalian 6 Shenyang 7 Harbin 8 Hangzhou 9 Ningbo 10 Xuzhou 11 Chansha 121 Chengdu 13 Shenzen 14 Guangzhou 15 Kumming 16 Chongqing From Shanghai 0.00 4.14 3.92 4.43 5.52 5.46 6.90 1.38 1.32 2.76 4.14 9.67 5.52 5.54 6.90 9.67 Beijing 4.14 0.00 1.38 2.76 2.83 2.76 4.14 5.52 5.52 2.76 5.52 8.28 9.67 11.05 9.67 9.80 Tianjing 3.92 1.38 0.00 1.29 2.59 3.89 4.54 1.29 2.59 5.22 5.19 4.54 9.09 9.74 9.09 6.38 Qingdao 4.43 2.76 1.29 0.00 3.24 5.19 7.25 0.64 3.89 3.86 5.19 5.31 7.79 8.66 9.23 6.49 Lead-times (days) From Beijing P1 Beijing P2 Shanghai P Shanghai WH Beijing WH 3.19 0.70 3.51 0.90 0.85 3.19 To Demand Shanghai Beijing Tianjin Qingdao Dalian Shenyang Harbin Hangzhou Ningbo Xuzhou Chansha Chengdu Shenzen Guangzhou Kumming Chongqing From Shanghai WH Beijing WH 1.06 3.19 3.19 1.06 3.08 1.08 3.19 2.12 4.30 2.05 4.25 2.12 5.31 3.19 1.06 4.25 1.09 4.27 2.12 2.12 3.19 4.25 7.44 6.38 4.25 7.44 4.23 8.51 5.31 7.44 7.56 8.07 1700 2300 550 650 800 400 900 300 300 650 750 350 1100 400 650 500