Supply Chain Management

1.        Based on the available information, Atlanta offers the best distribution center in the covering of the southeastern region. The assessment of both the horizontal as well as the vertical grid values indicates that Atlanta has 1400 horizontal and 600 hundred vertical grid values respectively. These grid points offer the closest location to the southeastern region that the company is targeting. The only limitation to this selection is the fact that the solution presents an optimum solution for just a unitary point in time (Coyle, 2009). The additional factors to take into consideration encompass the variation in the volumes that the company experiences, also whether there are any changes to the transportation rates. Additionally, it is necessary for the company to addresses issues such as the availability of the raw material along with the location of the markets. The selection of the grid is additionally dependent on the transportation costs remaining constant; although there are certain factors that can make these rates vary. In this case, the assessment of the grid makes it possible for one to establish that Atlanta is closest to the target location. Additionally, the application of the grid technique for the analysis offers a good starting point although it is imperative that other factors are taken into consideration in the making of the final decision (Coyle, 2009). These should encompass the projection of the industry’s future, transit privileges, transportation rates, commercial zones, foreign trade along with the tampering rates. About the selection of Atlanta as the choice, it is currently the best distribution site for numerous local, regional as global companies. Statistics indicate that Atlanta offers excellent market access to diverse destinations across the US and the rest of the world. Atlanta is the contemporary distribution hub boasting of highly developed infrastructure as railway, airports, ports as well as the highways. If the company decides to take their products to the global market, Atlanta is strategically located, being closest to Savannah, the fourth largest container port in the US. The company’s products can be shipped via truck to approximately 80% of the US in just two days, in addition to the fact that Atlanta has constantly been described as being one of the biggest inland ports in the globe (Coyle, 2009).

The fact that the infrastructure is already available in Atlanta and that it has the least cost center of the grid, it is my perception that retaining the distribution center in Atlanta offers the company with the most reasonable decision.

2.        With the projection of the growth in the transportation, I believe that the south coast region is not going to be impacted adversely. The rationale behind this conclusion is the fact that since Atlanta strategically located to the region and that the infrastructure is already available; the company will just select an alternative transportation model that offers the least charges. The most applicable option to transport the products to the south coast market would be via the rail instead of trucks.

3.        I believe that the market growth in Raleigh/ Durham is going to be a good thing for Atlanta. The rationale behind this assertion is the fact that the relocation of some of the distribution functions to Allentown will reduce the burden that Atlanta had in delivering up north. Thus, Atlanta is going to be able to successfully serve the markets on the south coast for more conveniently and satisfactorily.

References

Coyle, J. (2009). Supply Chain Management, A Logistics Perspective (8th ed.). Mason, OH:          South-Western Cengage Learning

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