Solution for Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain 1st Edition Chapter 3, Problem 1

by Michael Watson Sara Lewis Peter Cacioppi Jay Jayaraman
106 Solutions 14 Chapters 18733 Studied ISBN: 9780133017373 Supply Chain Management 5 (1)

Chapter 3, Problem 1 : 1. Al’s Athletics has just started the data...

1. Al’s Athletics has just started the data collection required for you to help them develop their associated network design model. During the first conference call, they indicate that they have three reports they feel could be used to determine the model’s demand per customer. Based on what you have learned in this chapter, which of the following reports could best help us create the demand file? For each of these reports, describe why or why not you could use it to create the demand file.

a. Financial Report listing invoice payments received from all customer accounts over the course of the past year.

b. Warehouse Management System Reports showing inventory levels during each month of the first quarter of last year.

c. Transportation Shipment Report showing origins/destinations, shipment weight, date, and cost over the course of the past year.

Step-By-Step Solution

1. The demand file needs to show how much product was shipped to each of the stores. Option “c” will have this information. The financial report will show just the payments and not necessarily the physical goods moving between sites. The Warehouse Management System just shows inventory and not how much of each product was shipped to each customer.

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