Individual-Location-Case-study
.docx
keyboard_arrow_up
School
University of Manitoba *
*We aren’t endorsed by this school
Course
3360
Subject
Geography
Date
Dec 6, 2023
Type
docx
Pages
9
Uploaded by Watermelonnnnniieee on coursehero.com
1
Individual Exercise: Location
Mini Case Study
Supply Chain Management
August 26, 2021
Contents
Problem and Causes……………………………………………………………………………..3-4
Causes……………………………………………………………………………………………..4
2
Analysis/Alternatives……………………………………………………………………………5-7
Solution………………………………………………………………………………………….7-8
Recommendation/Conclusion……………………………………………………………………..8
Reading Source/References……………………………………………………………………….9
Problem
3
A Shanghai-based company has developed a new hand-held unit/cellphone to be imported to
North America. The company seeks to establish a single distribution center (DC) in the Prairies
to efficiently reach customers in Alberta, Saskatchewan, and Manitoba. The company’s interest
in being near TransCanada #1 and exploring inland ports presents a challenge in deciding the
optimal location for the DC.
Causes
The root cause of the distribution center location decision challenge could potentially be the lack
of comprehensive location analysis strategy. This might manifest as insufficient evaluation of
various factors influencing the choice of location for the DC. Without a systemic approach to
analyzing the different aspects that impact the decision, the company might struggle to determine
the most optimal location that aligns with its goals and requirements.
Addressing this root cause would involve implementing a structured and data-driven location
analysis process. Here are some potential causes to the problem that I identified regarding the
DC location decision:
1.
Geographical Coverage: the need to serve multiple provinces requires careful selection of
a location that gives equal and efficient range.
2.
Logistics maximization: To lessen transportation costs and ensure timely delivery, the
company must strategically position the DC.
3.
Inland Port Benefits: Choosing an inland port, the advantages it offers in terms of
customs clearance, transportation efficiency, and intermodal connectivity should be
evaluated.
4
4.
Market Expansion: The company’s decision to expand its market presence in North
America has triggered the need for an efficient distribution center in the Prairies.
5.
Customer Satisfaction: The company’s commitment to providing excellent customer
service requires a well-placed distribution center to meet customer demands promptly.
6.
Transportation Efficiency: The company aims to ensure timely and cost-effective
transportation of its products to customers, which requires careful consideration of the
distribution center’s proximity to transportation corridors like TransCanada #1.
7.
Infrastructure Utilization: The company’s decision needs to factor in the existing
transportation infrastructure in each potential location to maximize its use for efficient
distribution.
8.
Operational Costs: Balancing the need for an optimal location with associated operating
cost, including real estate prices, labor expenses, and potential taxes, is a key challenge.
Identifying these underlying causes can help the company address the root issues ad make an
informed decision that aligns with its goals and objectives.
Analysis
Three potential locations are being considered: Calgary, Regina, and Winnipeg. Additionally, the
company needs to decide whether to locate within an inland port, such as CentrePort in Winnipeg
or the Global Transportation Hub in Regina. To further arrive at a decision, I have made
comparisons with the three alternatives or options for the company’s DC.
Calgary, Alberta:
Pros:
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help