9. 07/07/11 Economic benefits Consolidation warehouse Plant B [Product B for Customer X] Plant C [Product C for Customer X] Customer X [Product A+ Product B+ Product C] Plant A [Product A for Customer X]

10. 07/07/11 Plant A [Product A for Customers X+Y+Z] Break bulk warehouse Customer X Customer Y Customer Z

11. 07/07/11 Plant A [Product A] For W, X, Z Plant B [Product B] For W,X,Y,Z Cross Dock warehouse Customer W [A+B+C] Customer X [A+B] Customer Y [B+C] Customer Z A+ C Plant C [Product C] For W, Y, Z

12. 07/07/11 Service benefits In transit mixing Warehouse [transit mixing point, mix & make product C] Plant A [Product A] Plant B [Product B] Customer X Products A+ B+ C Customer Y Products A+B

13. 07/07/11 Manufacturing Warehouse Vendor A [part A] Vendor B [part B] Vendor C [part C] Assembly Line X Assembly Line Y Assembly Line Z

21. Warehousing strategy 07/07/11 Where? How many? Of what type? Private Contract Public Market Presence Industry synergies Operating flexibility Location flexibility Scale economies

26. 07/07/11 n 1 = number of existing facilities [warehouses] n 2 = number of future facilities [warehouses] If a company distributes 40,000 units using 8 existing facilities and plans to reduce the inventory in their future facilities to 20,000 units, then what should be the number of facilities in their future network without compromising the customer service? If we use the square root formula, the answer is 2 facilities