Background Information After operating a number of years in South East Asia, a company has decided to reduce the number of its warehouses from 12 to 4. The company is serving the ASEAN region with a population of about 661.5 million. Products & Distribution The Company is a major distributor of consumer medical equipment such as pedometer, heart-beat meter, blood pressure meter and others. It buys products from Canada, US, Europe and Japan. Country Original Number of DC Location of DC No of Retailer(s) GDP (2021*) (in billion USD) Brunei 0 3 15.69 Cambodia 0 2 26.08 Indonesia 3 Jakarta, Surabaya, 20 1,150.25 Medan Lao 0 0 1 19.38 Malaysia 2 KL, Kuching 30 371 Myanmar 0 1 66.74 Philippines 1 Manila 20 385.74 Singapore 2 Singapore 40 378.65 Thailand 2 Bangkok 40 546.22 Vietnam 2 HCM Hano 20 368 Total 12 177 3,327.75 *Note: These countries are supported by Singapore DC Source: O'Neill, A. (2021, November 30). ASEAN countries GDP 2021. Statista. Retrieved April 1, 2022, from https://www.statista.com/statistics/796245/gdp-of-the-asean-countries/ E W 53 IN D Page view A Read aloud FORAM My mar (Burma) Add text V Draw This map was created by a user. Learn how to create your own. Hanci Chiang Mai LOU WAI Laba HAINAN Vientiane aya Rong Thailand Bangkok South China Sea Vietnam Pattaya City LBERTIES Cambodia Andaman Sea Ho Chi ACER PERS Medan KEDAH PENANG TERENGGANU Malaysia Kuala Lumpur Singa re RIAU WEST SUMATRA JAMBI SOUTH SUMATRA Minh City BIAU ISLANDS LAMPUNG Jakarta SANAMAR WEST KAUMANTAN Saray SARKH Brunel NORTH KALIMANTAN CENTRAL KALMAR AN Surabaya Bandu Google My Maps Map: ASEAN Countries Kaohsiung City Lazon Manila Mindoro Philippies Panay Cebu Cagayan de Ona Davao Manado NOR NORTH SULAWESE JERST ALIMANTAN CENTRAL SULAMEST Indonesia Maxassal Revenue The company's revenue for the last 3 years is: Year 2019 2020 Revenue USD 50 million USD 75 million 2021 150 million T O W 53 Timor-Les Markets The market is characterized by a growing middle class who has a higher disposable income and is able to buy more products and the keen willingness to invest in wellness programs. This is seen in the rise of the number of gymnasiums across the region and exponential growth of health chains selling healthcare products and supplements. Analysts are optimistic about this sector in the long term. Assignment Your task is to prepare a report focusing on the following: 1. Discuss the "reduction of inventory" when the company reduces the number of warehouses. [20 marks] 2. What is the impact on customer service level when only four (4) warehouses are now serving the entire ASEAN region? [20 marks] 3. Discuss where the four (4) distribution centre should be located. Explain your choice(s). O P 53 [20 marks] F SonicMaster