SCM210 Unit 3 Individual Project

SCM210 Unit 3 Individual Project - Unit 3 Individual...

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Unit 3 Individual Project SCM210-1604A-04 Colorado Technical University Juan Borrego Professor Shawn Holland Due on October 24, 2016
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Section I: Introduction Currently, the company at hand has all the production and distribution of coolers out of a facility on the East Coast. This company has had challenges reaching the customers on the West Coast as a result of the high freight rates, due low density of the product. Therefore, the company is looking to expand to a Distribution Center. One of the major benefits of distribution centers are that the delivery time is also reduced significantly using a distribution center. Distribution centers also helps to extract value from goods through quick response to changing demand, customer preferences, pricing and supply. By creating a distribution center, the company will be able to reduce the time of delivery of products to the consumer, thus resulting in more sales and profits. However, the distribution system also creates disadvantages for consumer costs. When locals purchase a product created by local manufacturers, the cost to move the goods to an industrial distribution center and transport the goods again to a retail outlet adds costs to the consumer. That is inefficient.
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