ICA 2 – Network Design Last Name __Taylor__ First Name __Kris__ Question 1 It is time to set up a new lease. Already, you’re not wildly happy with your current apartment and you have heard rumors that the landlord is going to raise your rent by 30%. Clearly, it is time to look elsewhere. As you search for a new place to live, what are three considerations that will drive your housing decision? a. Rent price b. Location c. Quality of Life Question 2 You are a regional supply chain analyst for Target. For each of the following situations, identify the fulfillment option that you feel would be most effective for your stores in eastern Alabama (circle your choices). Also, describe why you made these choices. Product description Fulfillment Option Cross Dock Local newspaper Direct Deliver Why did you choose this option? Local newspapers come out a few times a week, and they don’t go very far. It’s easiest to just send them out from the publishing place instead of paying to send them to a warehouse first. Distribution Center Fresh chicken Cross Dock It would be very expensive to store fresh chicken in a warehouse, and it doesn’t make since to send the chicken directly from farm to your house in a timely manner. It’s easier to do the cross-dock option. Direct Deliver Distribution Center Cross Dock Auburn Tailgating Tents Direct Deliver Distribution Center Tents are more of a specialty item that doesn’t get used every day. They need a place to stay for the 8 months out of the year they aren’t used. ICA 2 – Network Design Question 3 The Bottoms-Up Bottling Company needs a new network strategy. BUBC currently serve 12 markets in nine states (IA, IN, IL, MI, MN, NE, OH, PA, WI) from their Toledo, Ohio soda concentrate factory and two bottling plants in Happy Valley, PA and Bloomington, IN. BUBC wishes to expand its marketplace to include states with SEC universities (AR, LA, MS, AL, KY, GA, FL, MO, SC, TN, TX) and new Big 10 universities (NJ and MD). The company has decided that one soda concentrate factory will be able to serve the existing customers and new markets. However, they feel that a total of four bottling plants will be needed for their entire network. Map of current network: Map of proposed network: Determine where the soda concentrate factory and the four bottling plants should be located. You are free to move existing facilities. Key assumptions: demand will be evenly distributed across the states, you will incur little cost to relocate existing facilities, and the transportation costs are consistent across the network. Facility Location (City and State) States served by this facility Concentrate Plant Frankfurt, Kentucky All Bottling Plant 1 Toledo, Ohio IN, OH, MI, PA, NJ, MD Bottling Plant 2 Springfield, Illinois IL, IA, NB, MN, WI, MO Bottling Plant 3 Huntsville, Alabama AL, GA, FL, KY, SC Bottling Plant 4 Jackson, Mississippi MS, AR, LA, TX, TN Describe your reasons for choosing these locations. Kentucky- It is right in the middle of all the states that the company wants to reach. Ohio- It is close to the concentrate facility, and it is the gateway state to the other six states it serves. Illinois- It is close to the concentrate facility, and it reaches the other half of the blue states. Alabama- It is relative centralized in the orange states, and it is close to Kentucky. Mississippi- It hits the four states Alabama misses, and it is closer to Texas than Tennessee is.
