prepare a case analysis:

Begin the paper with an overview of the situation as described in the reading. Provide sufficient detail such that someone who has not read the case could understand what is going on.

A thorough written analysis should include, but not necessarily be limited to, the following:

1) A clear statement of the problem(s).

2) A thorough analysis of the pertinent stakeholders and of the issues and the ways these combine to create the problem(s). Address the issues in the questions that follow the case if included.

3) One or more suggested solutions, with clear explanations of the strengths and weaknesses of each solution and with each solution supported.

4) An explanation of how the solution(s) can be implemented (by whom, etc.) and the problems that might be encountered with the implementation.

Avoid might be scenarios. Unless such material can be solidly and logically derived from the existing case material, it has no place in the written case analysis.

The quality of the written analysis will be judged not only on the solutions provided but also on how well the analyzer has supported his or her arguments with the use of case material, theory, and solid critical thinking. No statement should be included in a case analysis that is not thoroughly supported.

Delivery Strategy at MoonChem John Kresge was very concerned as he lef the meet has a capacity of 40,000 pounds nd Golden charges ing at MoonChem, a manufacturer of specialty a ixed rate given the origin and destination, irre chemicals. The year-end meeting had evaluated spective of the quantity shipped on the truck financial performance and discussed the fact thahe Currently MoonChem sends full truckloads to each firm was achieving only two inventory turns a year. A customer to replenish their consignment inventory more careful look revealed that over haif the inven tory MoonChem owned was consignment inventory THE ILLINOIS PILOT STUDY ith its customers. This was very surprising given that only 20 percent of its customes carried consign John decided to take a careful look at his distribu ment inventory. John Kresge was Vice Presiden of tion operations. He decided to focus on the slate of Supply Chain and thus responsible for inventory as Illinois, which was supplied irom the Chicago distri well as transportation. He decided to take a careful bution center. He broke up the state of Illinois into a look at how consignnmen nventory was managed collection of ip codes that were contiguous, and come up with an appropriate plan shown in Figure 10.10. He decided to restrict atten ion within the Peoria region, which was classified as zip code 615. A careful study of the Peoria region revealed two largc customers, six medium-sized cus tomers, and twelve small customers. The annual con MOONCHEM OPERATIONS MoonChem is a manufacturer of specialty chemi cals used in a variety of industrial applications sumption at each type of customer is as shown in MoonChem has eight manufacturing plants and Tabie 10.4. Golden currently charges $400 for each forty distribution centers. The plants manufacture shipment from Chicago to Peoria and MoonChem's the base chemicals and the distribution centers mix policy is to send a full truckload to each customer them to produce hundreds of end-products tat when replenishment of consignment inventory is customer specifications. In the specialty chemicals needed market. MoonChem has decided to differentiate itself in the Midwest region by providing consign ment inventory tots customers. MoonChem would omers on a single load. Golden informed him that like to take this strategy national if it proves effec e ould continue to charge S350 per truck and live. MoonChem keeps the chemicals required by ould then add $50 for each drop-off that Goldern each customer in the Midwest region on consign ment at the customers' sites. Customers use the a had to make e delivery, the total chargc chemicals as needed and MoonChem ensures replenishmen to ensure that the customers do no deliveries, the total charge would be S550 run out of inventorv. In most instances, consumption of chemicals by customer very stable. MoonChem s paid for the chemicals as they are used. Thus, all consignment inventories belong to MoonChem John checked with Golden to find out what it ould take to include shipments for mulliple cus was responsible for. Thus, if Golden carried a truck would be $400. However. if a truck had to make fou Customer Profile for MoonChem in Peoria Region TABLE 10.4 Customer Consumpiion umber Customers M DISTRIBUTION AT MOONCHEM Small Medium 12 MoonChem currently uses Golden trucking. a full ruckload carrier for all its shipments. Each truck 1.000 5000) 12,00