Question: Please use the data at the bottom to answer the following question, all 4 parts). I need to check my work. Thanks! 1. Consider transportation
Please use the data at the bottom to answer the following question, all 4 parts). I need to check my work. Thanks!
1. Consider transportation costs associated with each distribution strategy.
a. For the distribution system given in figure 1a, (continuous review inventory policy), compute inbound and outbound transportation cost.
b. For the distribution system given in figure 1b, (single, centralized warehouse) determine which regional warehouse, if made the central warehouse, will have the lowest transportation cost.
c. For the distribution system given in figure 1c, (a new, centralized warehouse is added to serve Atlanta, Boston, Chicago, and Dallas as shown in Figure 1c) compute inbound, intermediate (inbound to Atlanta, Boston, Chicago, & Dallas warehouses,) and outbound transportation cost.
d. Which distribution system has the lowest total cost out of all the three options described? Comment on your findings.
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