Operations Management and the Supply Chain

Boughton Green is a long-established building products company with its headquarters in Northampton. The principal activities of the company concern the operation of a number of retail superstores.
The company’s operations are presently concentrated in the East Midlands. The majority of stock is held in the superstores themselves; there is one central distribution facility in Northampton.

The company has been approached by one of its suppliers with a proposal to develop a range of sustainable timber products for the wider UK construction market. The proposed products (roof trusses, etc.) are not suitable for transport with the company’s existing stock; a new logistics solution is required.

You are to prepare a report outlining the potential impact of the new product line on the distribution footprint of the company.

Deliverables and Assessment Breakdown

You have been provided with a set of sales data identifying the geographical distribution of historic sales of the new products. You are to analyse the data, identifying the concentration of likely customers, and propose a supply chain network to serve them.

(a) Develop a Problem Statement and state your Solution Design Principles (10%)

(b) Use a Territory Design tool (Open Door Logistics is recommended) to identify the suitable depot locations to serve the anticipated market.

Consider a centralised solution (1-2 depots) and a decentralised solution (5-7 depots). What are the advantages and disadvantages of each? (40%)

(c) Explore the practical options for siting warehouses/depots in the locations identified by the modelling exercise. Present your final site selection, explaining the reasons for any changes from your initial result. (20%)

(d) In your view, what strategies should the company follow to ensure that the supply chain solution is as sustainable as the products themselves? (30%)

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