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GSCM 530 DeVry Week 6 Homework Assignment
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2. Your eyeglass frame-making firm is considering one of two distribution alternatives. The first is to make all shipments from your Chicago pl
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2. Your eyeglass frame-making firm is considering one of two distribution alternatives. The first is to make all shipments from your Chicago plant to one of three regional warehouses located in Philadelphia, Chicago, and Reno. All orders from eyeglass retailers would be shipped from these sites. The second alternative would be to create one warehouse in Memphis, Tennessee, and ship all orders via Federal Express.
a. Prepare a process flow diagram of each alternative.
b. What additional information would you need to ascertain which alternative will provide the best value to your customers?
c. Is this different from a lower cost solution? Why?
2. The following quarter, Aldo’s senior executive was interested in knowing whether performance had improved. The following table presents order and shipping data collected for the next quarter. How would you answer the senior executive?
3. Suppose a firm, in discussions with customers, learns that customers identify eight factors that they evaluate for every order they receive from suppliers. The firm then finds that its performance is 95 percent on six of these factors and 92 percent on the other two factors. What is the firm’s probable perfect order performance?
4. In problem 3, suppose performance on two of the factors that had been 95 percent falls to 90 percent. What is the impact on perfect order performance?