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Cool Ice Inc. is a local distributor of air conditioners that has seen an increase in local and international demand. Cool Ice Inc is forecasting a nationwide market sale for the budgeted year 2019-2020 at 500 units per month.

WOCOOL Inc, a Chinese manufacturer of air condition units in Tianjin, China, sees the local distributor as a strategic location for distribution to the Caribbean, Central, and South American markets. WOCOOL Inc forecast prospects for Cool Ice Inc are, respectively, the Caribbean; 1,100,000 units; Central America; 1,500,000 units and South America; 1,200,000 units per annum. WOCOOL Inc seeks to invest in this venture; therefore, Cool Ice Inc is being asked to develop a warehouse and logistics plan that should incorporate two (2) warehouse/distribution centers. These proposed centers must be able to distribute either 2,000,000 or 3,000,000 units.

Cool ice Inc must submit a warehouse plan detailing the economic benefits of either consolidation, break bulk and cross-dock, processing/ postponement, and stockpile to WOCOOL Inc, which should be inclusive of the following questions;

b. Which warehousing concept would be the best economic model for Cool Ice Inc?