How will this affect the southeastern location

Assignment Help Supply Chain Management
Reference no: EM13726284

Fireside Tire Company, a manufacturer of radial tires for sport utility vehicles, sells its products in the automotive aftermarket and distributes them throughout the United States. Fireside has three tire production plants located in Allentown, Pennsylvania; Toledo, Ohio; and Macomb, Illinois (see map). Normally, Fireside ships tires from its plants to distribution centers, but truckload-size purchases typically are transported directly from plants to customer locations. All shipments to a region move under truck-load rates applying to a minimum weight of 40,000 pounds, or 400 cwt.

Fireside management is concerned about the most economical location for a distribution center to serve its southeastern region, consisting of North Carolina, South Carolina, Georgia, Florida, Mississippi, Alabama, and southeastern Tennessee. Although an Atlanta distribution center currently serves this region, Fireside management is concerned that the Atlanta location is not the most logistically sound alternative.

To help the logistics department conduct an analysis of this region's distribution center location using the grid method, Fireside's transportation department developed the following data based on projections for 2012:

2012 SHIPMENTS TO ATLANTA

GRID COORDINATES

FROM

CWT

RATE/CWT

MILEAGE

HORIZONTAL

VERTICAL

Toledo

15,000

$2.20

640

1,360

1,160

Macomb

  5,000

  2.43

735

  980

1,070

Allentown

11,000

  2.52

780

1,840

1,150

2012 SHIPMENTS FROM ATLANTA

GRID COORDINATES

TO

CWT

HORIZONTAL

VERTICAL

Chattanooga

2,700

1,350

650

Atlanta

3,500

1,400

600

Tampa

4,300

1,570

220

Birmingham

2,800

1,260

580

Miami

5,300

1,740

  90

Jacksonville

5,100

1,600

450

Columbia

2,200

1,600

650

Charlotte

2,900

1,590

740

Raleigh/Durham

2,200

1,700

800











The transportation department also determined that total freight expenditures from the Atlanta distribution center during 2012 were $217,000 and that the average shipment distance was 330 miles.

CASE QUESTIONS

1.

Based on the available information, is Atlanta the best location for a distribution center to serve the southeastern region? If not, what would you recommend?

2.

The Fireside transportation department projects a 25 percent rate increase in 2013 from all of its transportation providers. How will this affect the southeastern location?

3.

Marketing anticipates that the Raleigh/Durham market will grow by 3,000 cwt in 2014, and that Fireside will serve the growth from Allentown. How will this affect Atlanta as a location?

Verified Expert

Reference no: EM13726284

When i first started out in supply chain years ago

When I first started out in Supply Chain years ago, one of my first mentors told me that you can’t improve what you cannot measure. Years later I learned that he stole that ex

Differentiate between simple and complex specifications

Identify and discuss two benefits of standardization. Define and discuss Value Engineering. Distinguish between transactional, collaborative, and alliance relationships. Diffe

Determine an appropriate certification for the industry

Determine an appropriate certification for the industry you are currently employed in. Briefly describe the certification requirements, identifying the benefits in obtaining

What would be the additional cost per unit

A company requires a component at the rate of 750 components per week for its assembly operations. The component can be manufactured in the company's workshop at a rate of 3

Flower production depends on availability of water

Knowing that flower production depends on availability of water, how long can the water bodies in Africa continue to feed flower production and still have enough for human c

Discuss the role of information technology in a supply chain

MO0360 - Discuss the meaning of these two schools of thought in relation to managing innovation in supply chains, whilst relating this to some of the innovation and relation

Take a process that you encounter on a daily basis

1.Take a process that you encounter on a daily basis, such as the lunch cafeteria or the journey from your home to school/work, and identify the bottlenecks that limit the thr

Case study- supply-chain challenges in post-earthquake japan

Case Study: Supply-Chain Challenges in Post-Earthquake Japan. Explain the advantages and disadvantages of the supply chain used in the Japanese auto industry before the eart

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd