Problem 3S-2 (Static)

Your eyeglass frame-making firm is considering one of two distribution alternatives. The first is to make all shipments from your Chicago plant to one of three regional warehouses located in Philadelphia, Chicago, and Reno. All orders from eyeglass retailers would be shipped from these sites. The second alternative would be to create one warehouse in Memphis, Tennessee and ship all orders via Federal Express.

a. Process Flow for Three Warehouses: Rank steps in the correct order.

	Hold into finished goods inventory.
	Move the frame to one of the three warehouses.
	Store the frames in the warehouse.
	Produce the eyeglass frames.
	Ship the order.
	Decide which warehouse will be used to ship out the order.
	Make a decision as to where we should ship the frames.
	Receive the order from the customer.
	Pick, pack, and prepare to ship the order.

b. Process Flow for Three Warehouses: Classify each activity.

	Hold into finished goods inventory.
	Move the frame to one of the three warehouses.
	Store the frames in the warehouse.
	Produce the eyeglass frames.
	Ship the order.
	Decide which warehouse will be used to ship out the order.
	Make a decision as to where we should ship the frames.
	Receive the order from the customer.
	Pick, pack, and prepare to ship the order.

c. Process Flow for the Centralized warehouse: Rank steps in the correct order.

	Pick, pack, and prepare to ship the order.
	Move the frame to the centralized warehouse.
	Hold into finished goods inventory.
	Produce the eyeglass frames.
	Receive the order from the customer.
	Ship the order.
	Store the frames in the warehouse.

d. Process Flow for the Centralized warehouse: Classify each activity.

	Hold into finished goods inventory.
	Move the frame to the centralized warehouse.
	Store the frames in the warehouse.
	Produce the eyeglass frames.
	Ship the order.
	Receive the order from the customer.
	Pick, pack, and prepare to ship the order.