Reference no: EM132336982
Application
Prepare a post that responds to question 5 on page 22 of your Supply Chain Network Design text. Which solution did you select? Using the text and the assigned article, identify and discuss reasons for your selection.
A small medical supply company in Australia has just developed a never before seen product with major pre-release orders from around the globe already. This company will need more production capacity to support their forecasted sales for this new blockbuster product. If they simply expand their plant in Australia, they estimate that their production, transportation, and warehousing costs will be approximately $450 million (AUD). After a careful network design study, they have found two solutions that people in the company generally like.
• a. Solution #1: Estimated cost of $375 million with a new large plant in China to supplement their existing plant in Australia.
• b. Solution #2: Estimated cost of $385 million with three new smaller plants in China, Brazil, and Italy to supplement their plant in Australia. These plants would service their local regions.
(Assume the costs listed here include all the costs that are relevant.) What would be the best reasons for picking solution #1? For picking solution #2? Why is it important for this firm to consider other non-quantifiable factors when determining their best course of action for expansion?
Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain Michael Watson; Sara Lewis; Peter Cacioppi; Jay Jayaraman
Unit 1 Discussion 2
Evaluating Supply Chain Strategy
Review Xu, Xu, and Liu's 2014 article, "Wal-Mart and Carrefour's Supply Chain Management Strategies in China." Evaluate Wal-Mart and Carrefour's use of supply management as an offensive strategy in their move into the Chinese market. In your post, consider the importance of supply chain strategy to overall firm strategy.
Attachment:- Article-Wal-Mart and Carrefour Supply Chain Management Strategies.rar