How supply chain change works, Operation Management

Assignment Help:

An online retailer of a single product has four major markets in the four "corners" (North-East, South-East, North-West and South-West) of a country. Assume that daily demand in each market is exactly 10 units. The retailer currently has a distribution center located in each of the corners to ensure that customer orders can be fulfilled quickly. The distribution center replenishes its inventory from the manufacturer at a unit cost of $3200 and a fixed ordering cost of $62500 per order. The cost of capital for this retailer is 0.2 $/$/year. There is now a proposal to consolidate the inventory of this firm at one central distribution center and to close the four regional distribution centers. Assume that sales will not be affected by the increased order fulfillment times caused by this change to the supply chain. How does the cost per unit (taking ordering costs and inventory holding costs also into account) change for this retailer by this supply chain change?


Related Discussions:- How supply chain change works

Explain what is the minimum number of workstations output, An assembly line...

An assembly line with a number of tasks is to be balanced. The sum of the task times is 100 minutes. The line will operate for 7 hours per day. What is the minimum number of wor

Introduction to the operations function, Introduction to the Operations Fun...

Introduction to the Operations Function Firstly, consider the economy where gross domestic product (GDP) has been subdivided into its major divisions which are agriculture, ma

Explain everything else remaining constant what will occurs, Everything els...

Everything else remaining constant, when the sample size increases, which of the following occurs? The sampling error decreases. The sampling error increases. The sampling

In selecting a foreign market the importance of the priority, In selecting ...

In selecting a foreign market, a screening process is used by a firm. In regard to this process, answer the following: a) The importance of the priority order of the steps in t

Explain identifying opportunities, Identifying Opportunities Select a co...

Identifying Opportunities Select a company described in the Wall Street Journal, Fortune, Forbes, or another reputable business application. Visit the company%u2019s Web site to

Explain ethics training or strong ethical leadership, Which do you think wo...

Which do you think would be more effective for shaping long-term ethical behaviour in an organization: a written code of ethics combined with ethics training or strong ethical lead

View of the cell used by jobs - process design, View of the Cell Used By Jo...

View of the Cell Used By Jobs - Process Design This figure gives a close-up view of the cell used by Jobs 1 and 2. Notice that neither of the jobs uses all of the processes in

Explain inventory management technology, Costco is able to keep its invento...

Costco is able to keep its inventory expenditure relatively low through its management technology and cutting-edge point-of-sale inventory management technology. As a result, Costc

Show role as an employee of an organization in the is field, Briefly descri...

Briefly describe your role as an employee of an organization in the IS field. Give examples of what you need to know about information systems and how it can help with your job per

Write Your Message!

Captcha
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