Legoland Malaysia

Answer 2- If there should be a single location for all three companies the inventory holding cost will reduce because the product is placing at one location instead of different three locations. Moreover, by doing this the insurance and misplacing of product of cost reduce but in transit of inventory will increase because the shipments are truck load and the distance between customers and distribution centre is far. Furthermore, with this the service level improved which means order fulfilment process improved too. In addition to this, the

China’s underdeveloped infrastructure, in particular the land transport system and connection between different forms of transportation, slowed down distribution, increased logistic costs, and finally hindered expansion into rural regions (p.13). As a result of this slow transportation, Wal-Mart’s two distribution centers couldn’t serve the entire country adequately. On the other hand, these distribution centers were significantly underused due to small amount of stores. Consequently, the retailer couldn’t benefit from cost saving through its distribution approach (p.14). Furthermore, communication with the retailer’s 15,000 local suppliers was inefficient and costly due to the lack of an information-technology network (p.14).

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case.

Malaysia is a country of democracy, a multiparty system. The ruling party Barisan Nasional has been in power for over 25 years. That fact has provided the country with a high degree of stability, which is an important factor for companies investing in the country. Corruption exists in the country. This may be an obstacle for foreign companies, as it increases the company's costs and could cause problems. Transparency International takes 47th Malaysia out of 180 countries in its Corruption Perception

The Recommendation proposed here presented a global location selection reference tool for identifying key competences for potential sites and suggested how these competences can be used effectively and strategically in company’s supply chain. Additionally, the recommendation was addressed based on the assumption of locating all manufacturing stages at one site for worldwide distribution.

The disadvantages are higher outbound transportation costs. Even with a strategic warehouse location, such as Kentucky, there will bound to be retail outlets farther than others, such as San

Locating a central distribution center will increase the control over inventory for Consolidated. Having small point of operations will reduce the amount of inventory that will be maintained at the sites. Each location will have different needs and only stocking the immediate customer needs at each location will reduce overall costs. The purchasing discount will be easier to maintain if all shipments come to one location which will also save the company money. Having a couple small vans deliver to regional locations within an hour is less costly than ordering extra just to meet the minimum purchase discount. The cost of shipping to small locations will be minimal and will save the company and customers money in the long term. If the contractors know of items that they will need for a job they can inform Consolidated and the special items can be delivered to the job site or picked up at the regional office. Communication is key and willing to provide the best service in a timely manner will reduce cost and increase profit.

Operating such dynamic distribution centers is usually very expensive and allows possibilities of product wastage. The high capital requirement to run such large distribution centers produces a natural barrier to entry and smaller firms frizzle out if they try and compete with the larger firms.

toy or children's entertainment market Lego remains the brand of choice in the field of construction toys despite

To answer the problem we used a history of LEGO, made a Value Chain, a SW-model and organization structure.

The LEGO Group is a privately held company based in Billund, Denmark. It was founded in 1932 by Ole Kirk Kristiansen, initially a small carpenter’s workshop (Lego Group, 2011). It has since grown into a modern, global enterprise that is now, in terms of sales, the world’s fourth-largest manufacturer of toys (Keynote, 2010). The LEGO Groups core product is a line of plastic, interconnecting building bricks, predominantly targeted at children aged 3-14 years, sold in over 130 Countries (Encyclopaedia of Consumer Brands, 1994). The LEGO Group operate globally in the Toys & Games sector, with the UK market valued at

We are all aware about the importance of supply, manufacturing and operations chain for any business. It becomes even more important if we are crossing the borders and entering international marketplaces as we are

The ruling party of Malaysia, Barisan Nasional has been in power since the country’s independence in 1957. This fact has provided Malaysia a high degree of stability and the confidence of foreign investors / businesses.

The company has to decide between the two locations based on their virtues, availability and higher margin of profit.

(II) An Analysis of Existing Gaps in the Industry Supply Chain, Investment Niches, and Prospective Foreign Investors................7 (III) Major