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Problem-1: (Graphical-Scatter-Plotter-Multi-Part)

Rigsby Randall is a Certified Fulfillment Specialist of an order fulfillment company (www.fulfillmentadvantage.com) and is responsible for making strategic decisions and planning related to the logistics of the company. He is working on bringing some advantage to the company through the strategic placement of the company's warehouses in the United States to provide a competitive advantage to his customers, and provide the best customer service, and significantly reduce the order fulfillment costs and time. Also, food items need to be warehoused and delivered on short notice and within the shortest possible time. However, retaining the business with all the clients and products is more important than strategizing the locations of the distribution/warehousing centers even if that means extra logistics or extra costs.

 

Tab 1: Distribution of Corporate Client base of Fulfillment Advantage.
The map shows the states of the United States, and is drawn to scale. The circles on the map indicate the locations of the corporate customers of Fulfillment Advantage and represent the only corporate customer base of the company. The corporate customers are generally customers who do volume business with the company.
Problem1graphic_revised
 
Tab 2: Population Distribution in the United States in 2000.
The U. S. Census Bureau has produced the Population Distribution in the United States map (also referred to as the "Nighttime Map") as part of the Census 2000 map series. In this map, the states of Hawaii and Alaska, shown in lower left map corner and the upper left map corner, respectively, are in more relative position to the contiguous United States than in earlier map series. The 2000 version of the Population Distribution in the United States map reflects population data from the 2000 Decennial Census. The U.S. land area is shown in black against a midnight blue background in which the population locations are shown as though lights were visible during the night sky. White dots coalesce to form the urban population concentrations. On the map, each white "dot" represents 7,500 people.
 
small2kden
 
  1. Initially, Fulfillment Advantage planned for just one warehousing/distribution center for order fulfillment of all its customers, both corporate and individual customers for distribution across the United States. Which of the following would be better locations for the center?
Yes No  
NE
KY
KS
IL
CA
  1. Subsequently, Fulfillment Advantage planned a Client-to-Client distribution center specifically dedicated to the order fulfillment of goods from corporate clients to other corporate clients across the United States. What would be the suitable locations for this Distribution center?
Yes No  
NE
MO
KS
IL
KY
  1. If the clients in TX, CA, and MS are classified as Category-A customers who bring in more business than the rest of the clients, where should Fulfillment Advantage.com plan to re-locate the new Distribution Center?
Yes No  
KS
MO
OK
AR
TX

Solution-1 (Graphical-Scatter-Plotter-Multi-Part)

  1. It costs more to ship from California (to the individual customers) because the majority of the USA population is located in the Midwest, South, and East.
     
    For example, if you have one person at 0 and two at 3, then to be closest to all of them, you would locate the distribution center at 2, not at 0 or 1.5 or 3. Thus, a rough observation reveals that the best choice would be to locate the center in Kentucky.
The next best choice would be to locate in IL, next to the corporate customer in IL. There are an equal number of circles in the either direction of NE and KS, but the population distribution is weighted more to the west coast. Moreover, KY and IL have 10 to 14  lients nearby, compared to NE and KS from which many clients are located far away. Hence, we choose KY and IL.
 
Yes No  
NE
KY
KS
IL
CA
  1. Now, the problem is client centric. MO has at least 5 clients in surrounding states and weighs to the southern side, since more corporate customers are in the southern strip of the country, and MO is itself a location of a client. Hence, other locations would not be preferable. Choose only MO.
Yes No  
NE
MO
KS
IL
KY
  1. From the map, since TX, CA, and MS are A-category clients, the best location for the new Distribution Center should be weighted two times to the left for CA, and TX, one time to the right for MS, and a couple of times down for TX, and MS. Hence, the best location for the new center is OK.
Yes No  
KS
MO
OK
AR
TX




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