Reference no: EM132890841

MG 305 Case Study: Supply Chain Management

Question 1

Effective Supply Chain Management is critical to meeting customer demands in a timely manner and for controlling costs. You will conduct research, using your textbook and other resources, to answer the following questions:

A. Discuss supply chain management. This discussion should include a description/explanation of what  Supply Chain management encompasses and the critical issues surrounding it.

B. Discuss the factors that a company should consider when choosing a site for a manufacturing facility

C. Using the transportation model, help the Greenbriar Baking Company to make decisions about the location of a new manufacturing facility.

Question 2

The Greenbriar baking company is considering adding another bakery to its existing three facilities in Richmond, Virginia; Memphis, Tennessee; and Plains, Georgia, to serve three large markets in the Southeastern USA. Two locations, Columbia, South Carolina, and Raleigh, North Carolina are being considered. The transportation cost per pallet is shown below: 

                                                   FROM

To Richmond Memphis Plains Raleigh Columbia Demand

Raleigh $20 17 21 29 27 250

Columbia $25 27 20 30 28 200

Atlanta $22 25 22 30 31 350

Capacity 300 200 150 150 50

a) Which site would you recommend? Why?

b) Suppose that the Raleigh site has been selected. Due to the perishable nature of the goods, management wishes to restrict the maximum number of pallets shipped from any one plant to any single market. To accomplish this, management will charge a 5% surcharge on their optimal transportation cost from part(a). What is the new transportation plan and what is the new cost?