Homework Channel Demand and Capacity The final step in network design is to confirm facility capacities Denver has a shortage that needs to be fixed - The channel designer needs to determine if product can be moved from other facilities and at what cost Question: What alternative would be most effective for the Denver location? Support your answer. Channel Network for ABC Distribution Location Los Angeles $ Denver $ Boston $ New York $ Philadelphia $ Cincinnati (est.) $ Costs Location Los Angeles Denver Boston New York Philadelphia Cincinnati Transportation Cost US$/Ton Mile (Avg.) BRITISH COLUME INSTITUTE OF TECMNULULY 1.65 0.85 1.30 1.25 0.75 0.95 SUM Estimated Ship Ton- Miles 300 1,600 1,400 1,100 900 Max Capacity/Inventory Tons 600,000 500,000 400,000 400,000 400,000 600,000 2,900,000 Capacity/Tons Available 5,000 (15,000) 30,000 5,000 10,000 20,000 Total Forecast/Inventory Tons 595,000 515,000 370,000 395,000 390,000 580,000 2,845,000 Transfer Qty 0 Capacity/Tons Available $ $ 6A LA 6 69 69 0 $ 0 0 $ 0 $ $ Total $ 5,000 -15,000 30,000 5,000 10,000 20,000 55,000 Value short BCIT

Homework Channel Demand and Capacity