A company used three separate warehouses as fulfillment


A company used three separate warehouses as fulfillment centers for its online sales of thousands of products. The buildings were highly automated, creating a beehive of activity with people and machines working in frenzied coordination. Tall rectangular storage units were the dominant feature of the buildings. They were stocked and removed by forklifts and robots that moved products back and forth from the loading docks and the shelves. The equipment did most of the work including electronically accepting orders, finding items, and bringing products to be stored, packaged, or shipped. People intervened occasionally as needed.

The company was studying a proposal to consolidate into a single giant warehouse. The financial analysis showed the action would reduce costs significantly. The project would be more than justified by the rate of return on the money expended for the capital investment. A final consideration involved risk management. The company assessed the risks:

  • Initial Disruption.
  • Single Source Supplying.
  • Cyber Attack.

The main question: With respect to the story of the automated warehouse, identify one risk to be avoided.

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Business Management: A company used three separate warehouses as fulfillment
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