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ass03_310_due091410_example - ISE310 Fall 2010 Due Team...

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ISE310 Fall 2010 Session 05 Assignment 03 Due 09/14/10 Team assignment 1. Read chapter 4. Select a type of a completed product that is of interest to you and then using the material in Chapter 4, describe the type of distribution network you would use and why. Be as specific as you can in your choices. Do not choose products mentioned in the book. (2 points) Next week I will ask you to select your team’s product for your first project, so this is good preparation. The product that we chose is an expensive handbag that is sold at upscale department stores, as well as stand-alone boutiques. For this question, we will assume that the bag is sold at a retail location owned by the same company that produces the bag; it is not sold by in a department store. Because of the relatively high cost of the item, customers are much more likely to tolerate waiting time for their handbag. Therefore, the inventory kept at the store can be relatively low. This is in the best interest of the company because the inventory costs of the bag are high due to the high cost of the product. The distribution network we chose was manufacturing storage with direct shipping and in-transit merge. In this sort of distribution network, the vast majority of inventory is stored on site in factories. This eliminates the need for large distribution facilities, which are not necessary because of the relatively low demand for expensive bags. The shipping of products merges at the retail locations for the companies where the customer then picks up the products. The other products chosen were: Kindle, Acoustic Guitar, Ferrari, Blackberry Torch, Formal wear Leather Shoe 2. For the same product create a list of items out of which it is made (to the best of your ability and to the level of detail that makes sense to you) and estimate the manufacturing cost of each part. Explain your estimate. (3 points) For the Guitar: 3. Mahogany wood: $100-200 depending on the price of wood 4.
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