Re-read the case studies (Managing Growth at SportStuff.com and Designing the Production Network at coolWipes) at the end of Chapter 5 in your textbook. Answer the questions below about each case study:
Managing Growth at SportStuff.com :
- What is the cost SportStuff.com incurs if all warehouses leased are in St. Louis?
- What supply chain network configuration do you recommend for SportStuff.com? Why?
- How would your recommendation change if transportation costs were twice those shown in Table 5-17?
Designing the Production Network at CoolWipes:
- What is the annual cost of serving the entire nation from Chicago?
- Do you recommend adding any plant(s)? If so, where should the plant(s) be built and what lines should be included? Assume that the Chicago plant will be maintained at its current capacity but could be run at lower utilization. Would your decision be different if transportation costs are half of the current value? What if they were to double their current value?
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