Question: . If the company does not change its current supply chain, what will its distribution costs be for the following quarter? 2 . Suppose that
If the company does not change its current supply chain, what will its distribution costs be for the following quarter? Suppose that the company is willing to consider dropping the distribution center limitations; that is customers could be served by any of the distribution centers for which costs are available. Can costs be reduced? If so by how much? The company wants to explore the possibility of satisfying some of the customer demand directly from the production plants. In particular, the shipping cost is $ per unit from San Bernardino to Los Angeles and $ from San Bernardino to San Diego. The cost for direct shipments from El Paso to San Antonio is $ per unit. Can distribution costs be further reduced by considering these direct planttocustomer shipments? Over the next five years, Darby is anticipating moderate growth meters to the north and west. Would you recommend that Darby consider plant expansion at this time?
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