Aims 3770 production operations analysis

AIMS 3770 Production Operations Analysis

 

Class Exercise #1:  Selecting a Location for the New European Distribution Center

 

Case Problem: Selecting a European Distribution Center Location for American International Automotive Industries

 

American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia and Europe.  The company transports to its foreign markets by container ships.  To serve its customers in South America and Asia, AIAI has large warehouse/distribution centers.  In Europe it ships into Hamburg and Gdansk, where it has contracted with independent distribution companies to deliver its products to customers throughout Europe.  However, AIAI has been displeased with a recent history of late deliveries and rough handling of its products which causes products to be delivered in poor condition.  For a time AIAI was not overly concerned since its European market wasn’t too big and its European customers didn’t complain.  Plus, it had more pressing supply chain problems elsewhere.  But since trade barriers have fallen in Europe and Eastern European markets have opened up, its European business has expanded, as has new competition, and its customers have become more demanding and quality conscious.  As a result, AIAI has initiated the process to select a location for a new European warehouse/distribution center.  Although it provides parts to a number of smaller truck and auto maintenance and service centers in Europe, it has seven major customers in Vienna, Leipzig, Budapest, Prague, Krakow, Munich, and Frankfurt.  Its customers in Vienna and Budapest have adopted manufacturing processes requiring continuous replenishment of parts and materials.

 

 AIAI’s European headquarters is in Hamburg.  The vice-president for construction and development in Dayton, Ohio has asked the Hamburg office to do a preliminary search for a distribution center location based on geography, transportation, proximity to customers, and costs.  The Hamburg office has identified five possible cities for further consideration: Dresden, Lodz, Hamburg, Gdansk, and Frankfurt.  The Hamburg office has forwarded information about each of these locations to corporate headquarters, including forecasts of the number of containers shipped annually to each customer as follows: Vienna, 160; Leipzig, 100; Budapest, 180; Prague, 210; Krakow, 90; Munich, 120; Frankfurt, 50.  When the vice-president of construction received this information, he pulled out his map of Europe and began to study the locations.

 

 

 

1.      What are the five cities that have been identified as a possible location for AIAI’s new European warehouse/distribution center?

    1.  
    2.  
    3.  
    4.  
    5.  
  1. Where are AIAI’s seven major customers located?
    1.  
    2.  
    3.  
    4.  
    5.  
    6.  
    7.  
  2. Reading assignment 2 has a question about the sequence of location decisions.  Which stage is AIAI at in the sequence?
  1. Given that AIAI is trying to determine a location for its new European warehouse/distribution center, what should the strategic focus be in order to maximize the benefit of the location to AIAI?
  1. What mode of transportation does AIAI use to ship its product to Europe?  How does this shipping strategy impact your location decision?
  1. Continuous replenishment is a predetermined schedule for small, frequent deliveries, so that the customer’s inventory can be reduced.  What impact do you think the requirement of continuous replenishment for two of the customers should have on AIAI’s location decision?  Why?

 

 

 

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.