A retail chain has 8 stores in a region supplied from 4 supply sources. Trucks have a capacity of 40,000 units and cost $1000 per load plus $100 per delivery. Thus a truck making 2 deliveries charges $1200. The cost of holding one unit in inventory at retail for a year is $0.20. The vice president of the supply chain is considering whether to use direct shipping from suppliers to retail stores or setting up milk runs from suppliers to stores. What network do you recommend if annual sales for each product at each retail store are 960,000 units? What network do you recommend if sales for each product at each retail store are 120,000 units?

Evaluate an alternative that involves consolidating all 20-foot container volumes and using only a single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot container volumes and the existing consolidation center volumes are sent to this single consolidation center by suppliers. This new consolidation center volume would be packed into 40-foot containers, filled to 96 percent, and shipped to the United States. The existing 40-foot volume would still be shipped direc t from the suppliers at 85 percent capacity utilization.

Costco also employs a just-in-time inventory management system, which includes sharing data directly with many of its largest suppliers. Companies like Kimberly-Clark calculate re-order points in real time and send new inventory, as needed, to replenish store shelves. Costco also works to redesign product packaging to squeeze more bulky goods onto trucks and shelves, reducing the number of orders Costco needs to place with suppliers.Occasionally, the company leverages its 75 million square feet of warehouse space to reduce purchasing costs. For example, when Procter & Gamble recently announced a 6% price increase for its paper goods, Costco bought 258 truckloads of paper towels at the old rate and stored them using available capacity in its distribution centers and warehouses.These inventory management techniques have allowed Costco to succeed in tough times while others have failed. Costco turns its inventory nearly 12 times a year, far more often than other retailers. With many…

61) Which is NOT a condition necessary for the successful application of RM to a service business: A. Low fixed and high variable costs B. Perishable inventory C. Relatively fixed capacity D. Segmentable markets

The Incident Command System (ICS) is a structure and response system that has become the standard in many fire departments, police emergency operations, and emergency management systems across the United States. What are the components of the ICS? Select all that apply.   Finance   Logistics   Planning   Operations

The logistics of moving goods around the world-between countries and within countries-has been troubled by volume constraints in most parts of the supply chain from carriers to warehousing. O primarily in warehouses and distribution centers O primarily in ocean and rail carriers O mostly in the trucking industry