however either way it will increase the transportation and handling cost which

However either way it will increase the

This preview shows page 1 - 3 out of 3 pages.

however, either way, it will increase the transportation and handling cost which will be imposed to the customers leading to customer dissatisfaction or possible loss of the customer. Distribution centers should be located in or close to dense market area. Also, PFC should consider the risks of investing in automation. Obsolescence due to rapid technological change, market fluctuations, and return on investment. (Coyle, Langley, Novack & Gibson, 2017). Option 2 is expanding the fulfillment network by establishing additional distribution centers where needed. To choose option 2, PFC must have expertise in distribution and the resources to build the facilities. Once completed, it is expensive and operationally disruptive to modify structures, layouts, and flows. (Coyle, Langley, Novack & Gibson, 2017). Already
Image of page 1
6.3 Case Study 2 established facilities may not be able to handle new product lines when new requests emerge. Labor costs will go up significantly since you need to hire new employees doing the same work in three different DCs. Option 3 is outsourcing fulfillment to 3PL. Some organizations decide to use external experts for freight movement and transportation management. Top carriers in all modes offer the
Image of page 2
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture