Once the final design is approved, it will be time to select a sourcing strategy and a distribution center location. Your colleagues have provided data on expected sales by city, as well as manufacturing and distribution center costs (Appendix B).

Using the center of gravity method, find the ideal region for your first distribution center

The sales team has signed retailers in 4 major cities and has provided you with an overview of expected sales forecasts in the first year of distribution. Fidget-Widget will also be selling online through their own website, but executives have decided to focus the supply chain strategy on retailers for year 1. Your logistics analyst has reviewed many distribution centers and provided you with three sites that will be able to meet your service and cost expectations. She has asked you which of these you recommend. Your operations analyst has reached out to several contract manufacturers as well as analyzed the expected costs of launching an in-house manufacturing site. She has provided the following information to help you decide on a sourcing strategy. As a new start-up, you'd like to focus on minimizing your total Year 1 production costs