Final Project Assignment

SCM $301-$ Spring Semester $2024-$ Dr$.$ Langley's Section

Overview of the Case Analysis

We have discussed many concepts in SCM $301$ related to planning, sourcing, making, delivering and returning products and services. The purpose of this case analysis is to integrate relevant elements of the course and to apply tools you have learned to help evaluate supply chain performance.

Consider yourself a summer intern and your assignment is to put what you learned in SCM $301$ to good use in helping the Throx Company evaluate its current supply chain practices. You are tasked with assessing the company's recent performance and making decisions and recommending changes to help improve supply chain performance. The first part of this document provides background information relating to Throx, its business, and its supply chain. The second part includes the questions to which you will be asked to respond in this final project assignment.

Company Background Information

Throx sells higher$-$end custom$-$design socks that are packaged in three$-$sock sets. The company operates from a small packaging and distribution facility in Richmond, CA from which it ships products to customers. Given the company's location and business model, $97\%$ of its sales are in California, primarily in the major metropolitan statistical areas $($MSA$\text{'}$s$)$ of Los Angeles$-$Long Beach, San FranciscoOakland, San Diego, and Sacramento. The company sells exclusively via online sales, at an average retail sales price of $$\frac{20}{?}$ three$-$sock set, plus shipping costs charged to the customer.

The company currently orders its product from the Chinese sock manufacturer Zhejiang Datang Hosiery Group Co$.,$ Ltd$.$ in so$-$called "Sock City." Throx pays the manufacturer$/$supplier $$11\mathrm{.}00$ for each three$-$sock set. Socks are transported from the factory via truck to the port of Shanghai, from where they are shipped to the port of LA$-$Long Beach in the U$.$S$.$ via ocean freight. Once offloaded at the port, the socks are then shipped via truck to the distribution center in Richmond, CA$.$ On average, shipping time from the manufacturer in China to the Richmond facility takes $4$ weeks. In addition to the transit time required for shipment, the lead time from when an order is placed with the manufacturer to when it is shipped from Zhejiang is $3$ weeks. So$,$ the total lead time is considered to be $7$ weeks from when Throx places an order until it reaches the Richmond facility. Historically, the standard deviation of total lead time has been $1\mathrm{.}2$ weeks.

The next three pages include various types of information regarding Throx's business and supply chain. As a starting point, assume it is the end of FY$2020,$ and that you are developing and assessing supply chain plans for FY$2021.$