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Solution for Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain 1st Edition Chapter 14, Problem 1

by Michael Watson Sara Lewis Peter Cacioppi Jay Jayaraman
106 Solutions 14 Chapters 18730 Studied ISBN: 9780133017373 Supply Chain Management 5 (1)

Chapter 14, Problem 1 : 1. If you are considering closing a warehouse...

1. If you are considering closing a warehouse and opening a new one, what people in the organization might be impacted and how might they react to the project?

Step-By-Step Solution

1. The most immediate people impacted will be those who work directly at the warehouse. The warehouse workers may see their job threatened by this project. The warehouse managers may see the results of this project forcing them to move to another city. This may not be viewed as a positive project in their eyes.

The people in the transportation department may not be directly impacted, but they may have close relationships with their colleagues who do. Independent of this, they may have relationships with trucking companies that service this warehouse, and these relationships could be in jeopardy. Of course, the flip side of this could be true: If the warehouse is far away from customers, or it is very hard to find trucking firms to service the warehouse, they may be happy to see it move.

Some people on the sales team may see this as an opportunity to better service some different customers. Others may see this as threat to service those customers closest to the existing warehouse.

The people in the supply chain, in general, may see this as a chance to reduce costs in the supply chain and serve customers better. This project could be good for their careers in this way. On the flip side, implementation may represent a lot of extra work, and the team may resist this.

And, the list could go on. This question is good for discussing the politics within a firm and the different points of view that people may have.

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