Supply Chain Management Strategy Proposal,

Develop a Supply Chain Management Strategy Proposal, specifically dealing with the following scenario. The scenario centers around the choice of a location for a new distribution center for your firm’s insulated cooler products. As you know, these are large and bulky and take up a lot of room in either a truck (from a warehouse to retail stores or in a warehouse itself). Your factory is in the Chicago area, and you do not want to move it, nor outsource the manufacturing. Your product is used year round in the southern states and southwest, and in the summer months on the east coast.

1. How would you determine the ideal warehouse location? What factors would go into your choice of locations? Describe at least 3 factors.
2. Describe the pros and cons of setting up your own trucking fleet to take product from your factory to the new warehouse vs. using common carriers.
3. Given the high dollar value of your inventory, how can you ensure accuracy of both purchased raw material inventory (in your factory) as well as of the finished product itself in your factory and at the new warehouse?
4. How will planning for equipment capacity needs been done if you use a forecast-based system versus a demand management (JIT) -based system?
5. Create a finished goods production plan MRP (and component B procurement plan) given the following:
   • Production cycle time = 1 month
   • Each finished good item requires 2 Part B’s; part B has a 1 month procurement lead time
   • Beginning finished product inventory is 1,000
   • Forecasted sales are as follows:
     • Month 1:1,000
     • Month 2:1,100
     • Month 3:1,150
     • Month 4:1,200
     • Month 5:1,200
     • Month 6: 1,300
   • Safety Stock:On the first day of each month, you want to have that month’s sales already in inventory
   • Capacity of the plant is 1,300 units
   • Download the blank MRP template to complete your MRP.