Question: You have been called to make recommendations for improving the system: Part a: ( 1 5 pts ) In order to capture the improvement, you

You have been called to make recommendations for improving the system:
Part a: (15 pts) In order to capture the improvement, you first need to estimate the costs of the current
system. If the company does not change its current distribution strategy, what will be distribution system
cost for the next quarter?
Part b: (25 pts) Suppose that the company would like to realign the assignments of customers to
distribution centers, and distribution centers to plants. What would be the optimal plan? How much does
it improve over Part a? Please comment on the changes. Should Ela and Beren fixtures change their
distribution (transportation) plan? If so, what would be their savings?
HINT: For N.A. transportation costs consider a large (very big) number.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!