Designing the Distribution network for Michael‘s hardware.
Questions
1. What is the annual distribution cost of the current distribution network? Include transportation and inventory costs.
2. How should Ellen structure distribution from suppliers to the store in Illinois? What annual saving can she expect ?
3. How should Ellen structure distribution from suppliers to the store in Arizona? What annual savings can she expect ?
4. What changes in the distribution network (if any ) would you suggest as both markets grow?