Q1. Consider the following distribution network. The first process, process A, is unloading cargo off of ships in California ports. Lets assume that this activity has a rate of 57,000 units per day. The next step is Process B, which is to load trailers for the shipment to the DC (distribution center), assuming a rate of 60,000 units per day. The goods are then processed at the DC, process C, which involves sorting and packing at the rate of 78,000 units per day. Lastly, there is Process D, which involves shipping trailers of goods to customers at a rate of 48,000 units per day. Assume that the system is working 24 hours per day.

Note: Answer each question independently of one another.

Show all your work/Justify your answer.

1. For the above distribution network, what is the output of this distribution system? (2 Points)

[Insert your solution here]

2. Identify the bottleneck(s) of the above distribution network. (1 Point)

[Insert your solution here]

3. If Process D loses one hour of its capacity per day, what is the impact on the output of the distribution network? (2 Points)

[Insert your solution here]

4. If Process B loses two hours of its capacity per day, what is the impact on the output of the distribution network? (1 Point)

[Insert your solution here]

5. If the capacity of Process A has been increased by 13,000 units per day, what is the impact on the output of the network? (1 Point)

[Insert your solution here]

6. As part of restructuring the distribution network, a third-party logistics (3PL) is hired to take the loaded trailers from Process B and deliver it to customers. Given that the maximum delivery capacity of this 3PL is 25,000 units per day, what is the total output of the restructured distribution network? Identify the bottleneck(s) of this system. (5 Points)

Hint: The priority is to use the internal capacity before utilizing the capacity of the 3PL.

25,000 3PL Output Process A Process B Process C Process D 57.000 60.000 78,000 48,000