scm645_db3

Aug 10th, 2016
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Tedra, Feets’ VP of supply chain, is considering the construction of a new distribution center. This may be required if the new superstore is successful. Please discuss the interaction between the Feets product types, facility location, and transportation modes available. Include the following in your answer: •What makes a good or bad location? •Should you plan your facility location explicitly considering transportation modes?

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SCM645-DB3NameClassDateProfessorSCM645-DB3 Fleet new superstore will require that the company build a new distribution center which will make the necessary products readily available to the customer. While in order for the superstore to be successful it will need to be able to provide the consumer with a wide array of products the distribution center needs to be located in a convenient place which will meet both the needs of Fleet and the suppliers of the products being sold. Due to the high expense of transportation consists the location must be convenient to all parties in the supply chain. Selecting the location of the distribution center is critical to the logistics of the supply chain especially the transportation process. The most important factor when considering the location of the distribution center is economic cost minimization. This would require limiting the time traveled and reducing logistic costs. When transportation is analyzed as a contributing factor, it must be recognized that its costs are affected by industry trends or technological innovations (Escalante, 2008). In other words less distance may not reduce if there are more

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