A Supply Chain Problem

In: Business and Management

Submitted By Candace7272
Words 1521
Pages 7
A SUPPLY CHAIN PROBLEM:
HOW BEST TO COMBINE TRANSPORTATION AND WAREHOUSING
TO SERVE A SPECIFIC MARKET

CASE REPORT

PREPARED BY:
DATE:

PREPARED FOR:

MEMO
TO:

LARGE FLOUR MILL

FROM:

SUPPLY CHAIN MANAGEMENT TEAM

2
DATE:

OCTOBER 21, 2015

RE:

A SUPPLY CHAIN PROBLEM

We are currently analyzing how best to combine transportation and warehousing to serve the
Alberta market.
The decision that has to be determined is whether to have either one or two warehouses.
Given the current Alberta business, and given the newly acquired Calgary operation, should a new packaging and warehousing facility be built or acquired in Edmonton, or should reliance be solely on the currently underused Calgary facility. In a decision such as this, we performed a complex analysis of the supply chain where transportation, warehousing, inventory, and customer demands were all considered.
Our rail transportation provider offered discounts and gave three options to choose from. They will provide a lower price per tonne if we were to take advantage a multiple car rate of either: 25,
50, or 100 rail cars when transporting bulk flour from the mill to Alberta.
Warehousing decisions were based on associated carrying costs, frequency of deliveries, and demand needs.

Safety stock on the warehouse level was not determined. (Because this

assignment has too much information and it was all absolutely unorganized and confusing and I got to the point that I did not want to do this assignment any longer. And because the remainder of the information required would be immaterial, as the most relevant costs have already been determined in the work that I actually completed, to answer the question posed.)
DEMAND

Large Bakery
Calgary Urban
Edmonton Urban
Rural Centres
Total in Tonnes

Bakery/Food Processors 50kg
Bags
0
13,000
13,000
24,000
50,000

Packaging Plants
CALGARY
EDMONTON

Retail 10kg Bags
0
2,500…...

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