Metal works case study

1495 Words Mar 14th, 2015 6 Pages
Metal Works Case study
Project Summary-
Metal-Works is a manufacturer of steel products such as steel safety boxes and cabinets. At present, the company has two existing manufacturing facilities in Delaware and Iowa. The new appointed CEO of Metal-Works Corporation wants to re-configure the network for the company. The present configuration is believed to not be optimum. As an initiative to improve this situation, the CEO has decided to hire a consultant to analyze the current distribution centers. Metal works serve their whole customer base of 120,000, which is supposed to increase steadily in the coming years. Thus, it is necessary to check all the possible alternatives for improvement. Conclusively, the Mexican plant is a better
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Question 2-Should new distribution centers be established? If so, how many?
Answer 2- As per the simulation, for the year 2010, increasing the number of the warehouses is favorable. The number of new distribution centers should be 6, excluding the 2 preexisting facilities in Dover and in Iowa.
Question 3-If new distribution centers are going to be established, where should they be located? What size is appropriate for each facility?
Answer 3- The new distribution centers should be located in the following locations-
1. Reno, California
2. Los Angles, California
3. Phoenix, Arizona
4. Chattanooga
5. Orlando, Florida
6. Dallas, Texas
The sizes of all the existing warehouses in terms of volume of inventory is listed as follows-
1. Reno- 341,847
2. Los Angles- 238,780
3. Phoenix-247,654
4. Chattanooga-249,308
5. Orlando-244,692
6. Des Moines-769,170
7. Dover-1285,000
8. Dallas-248,647

The above figure shows the distribution of the warehouses without the extension in the Mexican plant.
Question 4-How should each plants production be allocated among the distribution centers?

Answer 4 – The distribution of produced goods should be on the basis of the demand concentration. The greater the demand concentration, the greater should be the capacity of the distribution center. Hence, as per the availability, the capacity of each warehouse should be

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