Hgjv Essay

430 Words2 Pages
1. What impact would the three new alternatives have on transfer and customer freight costs? Why? 2. What impact would warehouse consolidation have on inventory carrying costs, customer service levels, and order fill rate? 3. How are warehousing costs affected by the decision to use third party or private warehouse facilities? What effect would this have on handling, storage, and fixed facility costs? 4. What effect would shipping mixed shipments from consolidated distribution centers have on individual company cost and performance? 5. Evaluate the eight supply chain processes in terms of customer classification and degree of centralization/decentralization of required functionality (use the matrix below). 6. Given all available information briefly describe the logistical system design you would recommend for Westminster’s integrated consumer products. https://www.inkling.com/read/supply-chain-logistics-management-bowersox-4th/cases/case-4-westminster-company 1- What impact would the three new alternatives have on transfer and customer freight costs? Why? The way I see it there are a number of constraints placed on the company. System consolidation makes it easier for transportation economies to be gained. Truckload volumes would be more easily gathered to and from distribution centers, lowering transfer and customer freight costs. However, the effect of using third party warehousing and transportation on transfer and customer freight costs is less obvious. 2- What impact would warehouse consolidation have on inventory carrying costs, customer service levels and order fill rate? Inventory carrying Costs would be reduced with better utilization of facilities and less duplication of effort. The company operates two warehouses in Newark, NJ and Los Angeles, CA. Theses are clear candidates for consolidation. Regardless of any changes

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