1. Discuss the "reduction of inventory" when the company reduces the number of warehouses. 2. What is the impact on customer service level when only four (4) warehouses are now serving the entire ASEAN region? 3. Discuss where the four (4) distribution centre should be located. Explain your choice(s)
1. Discuss the "reduction of inventory" when the company reduces the number of warehouses. 2. What is the impact on customer service level when only four (4) warehouses are now serving the entire ASEAN region? 3. Discuss where the four (4) distribution centre should be located. Explain your choice(s)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. Discuss the "reduction of inventory" when the company reduces the number of warehouses.
2. What is the impact on customer service level when only four (4) warehouses are now serving the entire ASEAN region?
3. Discuss where the four (4) distribution centre should be located. Explain your choice(s).
Transcribed Image Text:A JE
ORAM
My mar
(Burma)
Naypyidaw เชียงใหม่
နေပြည်တော်
Andaman Sea
АСЕН
Chiang Mai
เทศบาลนคร,
ms 200 km
This map was created by a user. Learn how to create your own. X
Hanoi
Laos
HAINAN
Thailand
Bangkok
กรุงเท มหานคร
Pattaya City
เมืองพัทยา
Gulf of
Thailand
Medan
0
ວຽງຈັນ
Vientiane
KEDAH
PENANG TERENGGANU
PERA
Malaysia
Kuala Lumpur
Cambodia
RIAU
WEST SUMATRA
Singa re
JAMBI
SOUTH SUMATRA
LAMPUNG
Vietnam
Ho Chi
Minh City
RIAU ISLANDS
SARAWAK
Prace
Islands
WEST
KALIMANTAN
Mong Kong
香港
Java Sea
South
China Sea
Spratly
Islands
CENTRAL
KALIMANTAN
SABAH
Brunei
NORTH
KALIMANTAN
EAST
KALIMANTAN
SOUTH
KALIMANTAN
Kaohsiung
City
Luzon
Manila
Mindoro
Palawan
Philippes
Panay
Cebu
Negros
Sulu Sea Mindanao
Celebes Sea
CENTRAL
SULAWESI
WEST SULAWESI
SOUTH SULAWESI
Indonesia
Makassar
Jakarta
Surabaya
BanduGoogle My Maps
BALI WEST NUSA EAST NUSA
TENGGARA TENGGARA
Map: ASEAN Countries
Revenue
The company's revenue for the last 3 years is:
Year
2019
2020
2021
Revenue USD 50 million USD 75 million 150 million
Cagayan
de Oro
Davao
NORTH SULAWESI
Manado
NOR
NORT
Banda:
Timor-Les
Transcribed Image Text:Background Information
After operating a number of years in South East Asia, a company has decided to reduce
the number of its warehouses from 12 to 4.
The company is serving the ASEAN region with a population of about 661.5 million.
Products & Distribution
The Company is a major distributor of consumer medical equipment such as pedometer,
heart-beat meter, blood pressure meter and others. It buys products from Canada, US,
Europe and Japan.
Country
Original
Number of DC
Location of DC
No of
Retailer(s)
GDP (2021*)
(in billion USD)
Brunei
0
3
15.69
Cambodia
0
2
26.08
Indonesia
3
Jakarta, Surabaya,
Medan
20
1,150.25
Lao
0
0
1
19.38
Malaysia
2
KL, Kuching
30
371
Myanmar
0
1
66.74
Philippines
1
Manila
20
385.74
Singapore
2
Singapore
40
378.65
Thailand
2
Bangkok
40
546.22
Vietnam
2
HCM, Hanoi
20
368
Total
12
177
3,327.75
*Note: These countries are supported by Singapore DC
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