2. Please read the "Designing the Distribution Network for Michael's Hardware" Case study on page 424-425 of your course textbook "Supply Chain Management, Strategy, Planning, and Operation" and then answer the following questions (please feel free to use the Excel spreadsheet available to you as part of this homework assignment) a) The current transportation network uses small trucks to ship directly from suppliers to stores in Illinois. What is the annual distribution cost of the current distribution network in Illinois (include transportation and inventory costs)? (15 points) b) How does your answer to part a change if the transportation network uses large trucks instead? (10 points) c) Ellen is considering Milk Runs via Small Trucks with 4 stores per route as well as Milk Runs via Large Trucks with 10 stores per route for the Illinois market. What is the annual distribution cost under each of these distribution strategies? ( 30 points) d) Considering your analysis in parts a, b, and c: What distribution strategy should Ellen consider for Illinois: direct shipment via small trucks, direct shipment via large trucks, milk runs using small trucks, milk runs using large trucks? ( 5 points) e) If the Illinois market grows by a factor of 6 (i.e., demand is multiplied by 6), what is your answer to part d ? (5 points) f) What changes in the distribution network would you recommend for the Illinois market as the Illinois market grows? Discuss your recommendations qualitatively (no calculation is needed) ( 10 points) 2. Please read the "Designing the Distribution Network for Michael's Hardware" Case study on page 424-425 of your course textbook "Supply Chain Management, Strategy, Planning, and Operation" and then answer the following questions (please feel free to use the Excel spreadsheet available to you as part of this homework assignment) a) The current transportation network uses small trucks to ship directly from suppliers to stores in Illinois. What is the annual distribution cost of the current distribution network in Illinois (include transportation and inventory costs)? (15 points) b) How does your answer to part a change if the transportation network uses large trucks instead? (10 points) c) Ellen is considering Milk Runs via Small Trucks with 4 stores per route as well as Milk Runs via Large Trucks with 10 stores per route for the Illinois market. What is the annual distribution cost under each of these distribution strategies? ( 30 points) d) Considering your analysis in parts a, b, and c: What distribution strategy should Ellen consider for Illinois: direct shipment via small trucks, direct shipment via large trucks, milk runs using small trucks, milk runs using large trucks? ( 5 points) e) If the Illinois market grows by a factor of 6 (i.e., demand is multiplied by 6), what is your answer to part d ? (5 points) f) What changes in the distribution network would you recommend for the Illinois market as the Illinois market grows? Discuss your recommendations qualitatively (no calculation is needed) ( 10 points)