Tanny Supplia is head of logistics and coordinates the domestic supply chain for RWS. She's received numbers from corporate regarding demand, revenue and cost forecasts for the next four years and has been asked to re-work the supply chain to fit to plan. The current mapping of RWS is illustrated as follows with RWS dividing operations into four major zones containing their physical assets (two factories, five distribution centers and three retail centers). Currently, RWS assets in Zone l cannot communicate with assets in Zone 3 and Zone 4. The per-unit shipping cost of a box of shoes between zones is provided. Assume that RWS is performing a supply chain redesign from scratch and that it costs $1, 500,000, $500,000 and $250,000 respectively to open a factory, distribution center and retail center. Assume there are no warehouse or distribution center capacities at this time. Formulate a problem that you can solve to identify the 'best' (i.e., lowest cost) supply chain network for RWS. Note that every time a box of shoes moves between facilities, it accrues cost. As an example, a box of shoes moving from Factory 1 to DC 1 would accrue a cost of $0.75 (Zone I to Zone I movement). A box of shoes moving from DC 1 to Retail III would accrue a cost of $1.75 (Zone 1 to Zone III movement). Note also that you cannot 'skip' or 'jump' downstream (i.e., you cannot move a box of shoes from the factory directly to a retail center. It must pass through a DC). Assume that demand for each product is an average of average (i.e., demand at Retail Center 1 is calculated by averaging the four years of product demand forecast for a given product and then dividing that evenly between Retail Centers). How would your problem from (a) change if it became clear that Factory 1 could no longer produce Product C and Factory 2 could no longer produce Product A? Use any available method at your disposal to identify the 'best' supply chain network for RWS (use the discussion and assumptions of (a) to motivate your work here. In other words, 'solve' (a) here). Using your answer from (c), make an argument in support of or in opposition to the closing of DC 5_+ Using your answer from (c), make an argument in support of or in opposition to opening transportation between Zone 1 and Zone 3. Using your answer from (c), make an argument in support of or in opposition to closing Retail Center 3. Note that this will necessitate a reassessment of demand as calculated in (a) above). Make an argument in support of or in opposition to outsourcing supply chain network management positions (e.g., Tanny's position and that of her colleagues). Tanny Supplia is head of logistics and coordinates the domestic supply chain for RWS. She's received numbers from corporate regarding demand, revenue and cost forecasts for the next four years and has been asked to re-work the supply chain to fit to plan. The current mapping of RWS is illustrated as follows with RWS dividing operations into four major zones containing their physical assets (two factories, five distribution centers and three retail centers). Currently, RWS assets in Zone l cannot communicate with assets in Zone 3 and Zone 4. The per-unit shipping cost of a box of shoes between zones is provided. Assume that RWS is performing a supply chain redesign from scratch and that it costs $1, 500,000, $500,000 and $250,000 respectively to open a factory, distribution center and retail center. Assume there are no warehouse or distribution center capacities at this time. Formulate a problem that you can solve to identify the 'best' (i.e., lowest cost) supply chain network for RWS. Note that every time a box of shoes moves between facilities, it accrues cost. As an example, a box of shoes moving from Factory 1 to DC 1 would accrue a cost of $0.75 (Zone I to Zone I movement). A box of shoes moving from DC 1 to Retail III would accrue a cost of $1.75 (Zone 1 to Zone III movement). Note also that you cannot 'skip' or 'jump' downstream (i.e., you cannot move a box of shoes from the factory directly to a retail center. It must pass through a DC). Assume that demand for each product is an average of average (i.e., demand at Retail Center 1 is calculated by averaging the four years of product demand forecast for a given product and then dividing that evenly between Retail Centers). How would your problem from (a) change if it became clear that Factory 1 could no longer produce Product C and Factory 2 could no longer produce Product A? Use any available method at your disposal to identify the 'best' supply chain network for RWS (use the discussion and assumptions of (a) to motivate your work here. In other words, 'solve' (a) here). Using your answer from (c), make an argument in support of or in opposition to the closing of DC 5_+ Using your answer from (c), make an argument in support of or in opposition to opening transportation between Zone 1 and Zone 3. Using your answer from (c), make an argument in support of or in opposition to closing Retail Center 3. Note that this will necessitate a reassessment of demand as calculated in (a) above). Make an argument in support of or in opposition to outsourcing supply chain network management positions (e.g., Tanny's position and that of her colleagues)
