1. Alp Enterprise is an online retail company operating in Australia. The target customers are Australian consumers. Alp promises its customers that merchandise ordered shall be delivered within 48 hours upon receipt of payment. The company has lately received frequent complaints from its customers about the poor delivery service.

The company focuses on low-cost electronic gadgets that are produced in China (50%), Thailand (30%), and Malaysia (20%). Alps profit is declining due to declining sales and increasing operating costs, particularly the logistics cost that includes transportation and storage.

Currently, Alp orders its goods from the manufacturers that are located in these three countries on a monthly basis. Goods ordered are delivered to their main distribution centre in Sydney. Alp also maintains smaller-sized warehouses in major cities in Australia.

1. Provide a solution that meets Alps customer service levels but will minimize the logistics cost for Alp Enterprise. Outline its benefits.

2. What are the disadvantages of your solution?

3. What supply chain management concepts underpin your solution?