The assignment must be a completed paper, with APA formattin” rel=”nofollow”>ing, all sections complete (usin” rel=”nofollow”>ing Roman numerals of each section per the outlin” rel=”nofollow”>ine), references, and good grammar.

You were recently hired as the VP of Logistics for the ABC Manufacturin” rel=”nofollow”>ing Company. This is a new position. Durin” rel=”nofollow”>ing the lengthy in” rel=”nofollow”>interview process, the CEO shared her strategic plans for worldwide growth in” rel=”nofollow”>in the company’s consumer sales. Previously, sales had been confin” rel=”nofollow”>ined to domestic sales only. As a result of little staff logistics expertise, the company had kept the traditional logistics model of shippin” rel=”nofollow”>ing all fin” rel=”nofollow”>inished products from its warehouse and factory location on the East Coast of the United States, even though there was a growin” rel=”nofollow”>ing market on the West Coast that competition was servin” rel=”nofollow”>ing from a West Coast warehouse. However, the CEO poin” rel=”nofollow”>inted out that despite its national popularity from a feature and quality perspective, it seemed to penetrate poorly on the West Coast because of her need to charge higher prices as the result of higher shippin” rel=”nofollow”>ing costs.

The marketin” rel=”nofollow”>ing manager tried to mitigate this competitive disadvantage by freight equalization so that end customers would pay the same amount of shippin” rel=”nofollow”>ing costs as West Coast competition charged, regardless of where they were located. This met with some in” rel=”nofollow”>insignificant success because timelin” rel=”nofollow”>iness of delivery was another important issue.

Therefore, the CEO had asked you, as your first assignment, to write a white paper to address the followin” rel=”nofollow”>ing specific poin” rel=”nofollow”>ints. She remembered that you had quite a bit of experience addressin” rel=”nofollow”>ing some or all of these issues durin” rel=”nofollow”>ing your career. As a stickler for formattin” rel=”nofollow”>ing, she has specifically asked you to use the followin” rel=”nofollow”>ing Roman numeral sections and headin” rel=”nofollow”>ings in” rel=”nofollow”>in the paper:

Section I: Introduction (200 words)
A.In general, what are the qualitative pros and cons for domestic sales of havin” rel=”nofollow”>ing multiple distribution centers and shippin” rel=”nofollow”>ing locations in” rel=”nofollow”>in the United States?

Section II: Decision-Makin” rel=”nofollow”>ing Criteria (300 words)

The CEO is considerin” rel=”nofollow”>ing three options with the same total construction and operatin” rel=”nofollow”>ing costs:
•expandin” rel=”nofollow”>ing the warehouse next to the East Coast manufacturin” rel=”nofollow”>ing plant;
•buildin” rel=”nofollow”>ing a West Coast distribution center; or
•buildin” rel=”nofollow”>ing a combin” rel=”nofollow”>ination manufacturin” rel=”nofollow”>ing and warehouse location on the West coast

Identify 5 criteria that must be considered when locatin” rel=”nofollow”>ing a new or expanded shippin” rel=”nofollow”>ing warehouse domestically, given this general in” rel=”nofollow”>information:
a.The products are primarily medium- and large-size in” rel=”nofollow”>insulated coolers, like you might use for a picnic or trip to the beach. Transportation firms charge by space, or cubic feet, rather than weight, which is the more normal method.
b.The coolers are made of 3 components, which are all produced by suppliers solely on the East Coast; the raw materials to make this product are bulky, and in” rel=”nofollow”>inbound shippin” rel=”nofollow”>ing from the East Coast suppliers currently represents 20% of total raw material costs.
c.The market is very competitive with generally stable or decreasin” rel=”nofollow”>ing marketplace prices.
d.In states that are warm year-round, sales are pretty steady; in” rel=”nofollow”>in states that have seasons, 90% of sales occur in” rel=”nofollow”>in the May–August period.
e.Right now, to keep West Coast customers happy, the CEO says that they only charge those customers the local freight cost of shippin” rel=”nofollow”>ing, which is $200 for anythin” rel=”nofollow”>ing up to half a truckload.

Section III: Metrics to Assess Success (250 words)
A.Describe 3 metrics that you would use to assess the success of any logistics plan in” rel=”nofollow”>involvin” rel=”nofollow”>ing you as a manufacturer and a mass merchandiser. Provide support for your selections.

Section IV: Qualitative Factors (200 words)

Identify 3 subjective, qualitative factors to consider in” rel=”nofollow”>in the recommendation.

Section V: Quantitative Factors (Excel Spreadsheet)

Provide a detailed recommendation as to whether you should open a West Coast distribution center, add on to the existin” rel=”nofollow”>ing East Coast factory and warehouse, or build a combin” rel=”nofollow”>ination West Coast manufacturin” rel=”nofollow”>ing location and warehouse?

Use this template to show your numeric calculations. Without calculations shown for how you reached your conclusion, section V will earn 0 poin” rel=”nofollow”>ints. REMEMBER: Decisions like this are based on a comparison of option A versus current methods, or option B versus current methods.

Your response must be quantitatively based usin” rel=”nofollow”>ing the data in” rel=”nofollow”>in section II, the additional data below, and from external resources as needed.

a.The products are primarily medium- and large-size in” rel=”nofollow”>insulated coolers, like you might use for a picnic or trip to the beach. Each cooler occupies 2 cubic feet of trailer truck space; trailers are 10 x 10 x 40’ long and cost $1,000 to ship from the East Coast to the West Coast.
b.The coolers are made of 3 components: 1 lb of raw material A, 1/4 lb of raw material B, and 1 gallon of material C, weighin” rel=”nofollow”>ing 10 lbs. Based on this in” rel=”nofollow”>information, the added freight cost to get raw materials to a West Coast manufacturin” rel=”nofollow”>ing location would be $0.20, $0.20, and $0.60 per fin” rel=”nofollow”>inished-good unit, respectively.
c.The mass merchandiser location on the West Coast will be purchasin” rel=”nofollow”>ing 10,000 units per week, but in” rel=”nofollow”>in lots of only 1,000 at a time because of their retail store space constrain” rel=”nofollow”>ints.
d.The market is very competitive, with generally stable or decreasin” rel=”nofollow”>ing marketplace prices.
e.In states that are warm year-round, sales are pretty steady In states that have seasons, 90% of sales occur in” rel=”nofollow”>in the May–August period.
f.The raw materials to make this product are bulky, and in” rel=”nofollow”>inbound shippin” rel=”nofollow”>ing from the suppliers to the manufacturin” rel=”nofollow”>ing plant represents 20% of total raw material costs. These raw materials are supplied in” rel=”nofollow”>in the United States from the East Coast; they are not available elsewhere.
g.In the past, to keep West Coast customers happy, the CEO agreed to freight equalize customer shippin” rel=”nofollow”>ing charges to be competitive with West Coast competition. She says that they only charge those customers the local freight cost of shippin” rel=”nofollow”>ing, which is $200 per delivery for anythin” rel=”nofollow”>ing up to half-truckload quantities.

Section VI: Conclusion (200 words)

What are the most important poin” rel=”nofollow”>ints that you want the CEO to understand about this entire decision-makin” rel=”nofollow”>ing process?

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