Posted: December 1st, 2016

What are the total outbound and inbound transportation costs of all items if DCs remain decentralized?

Please write a business analysis report addressing the following questions.

1. What key factors should James Bond consider when deciding about optimizing ASP’s distribution network?   [10%]
2. What is the total annual inventory holding cost of all items if
   1. DCs remain decentralized? [15%]
   2. DCs are consolidated into a single centralized DC? [15%]
3. What are the total outbound and inbound transportation costs of all items if
   1. DCs remain decentralized? [15%]
   2. DCs are consolidated into a single centralized DC? [15%]

4. What are the risks and merits of these strategies? [10%]

5. What are your recommendations? [20%]