Supply chThere are problems with the existing supply chain, as you quickly find out when you run the first simulation. You need to make changes and improvements in your store delivery schedules routes and in other areas. As soon as you get your existingsupply chainstabilized and able to run for 30 days, then you need to expand the business and open up four more stores. Pick locations for the four new stores, and figureout how to best deliver products to those new stores.

[NOTE: When this supply chain model was created distances were shown asONE-WAY.Now for new routes, the distances and times show ROUND-TRIP. This is a display problem only. The distances and times used in the simulations for new and existing routes are alwaysROUND-TRIPso simulation results are accurate.]

S&J Trading is going to opennew stores in Lubango, Namibe, Haumbo, and Kuito. Here is the product demand information you needto start planning for these new stores. For each of these cities, zoom in and use the satellite view to explore the city layout. Find a suitable location for a store in each of these cities and plan to open eachstore with on-hand product inventory equal to 10 days demand:

Daily Demand

Product A

Product B

Product C

Lubango

4

3

3

Namibe

3

2

2

Huambo

2

4

2

Kuito

4

3

1

Total Demand

13

12

8

ain management case study

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