Assignment
International Logistics & Supply Chain Management
Instructions:
Assignment should be hand written. Use A4 size paper only
Write your name and roll number in all the pages.
Use ilovepdf.com to merge into a single file.
Google form link: https://forms.gle/FbeWPwL6VxR8hdHE6
No other modes of submission is allowed.
Last Date:29-8-22
Question 1:
DryIce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly.
The company anticipates nationwide demand for the next year to be 180,000 units in the South;
120,000 units in the Midwest; 110,000 units in the East; and 100,000 units in the West.
Managers at DryIce are designing the manufacturing network and have selected four potential
sites - New York, Atlanta, Chicago and San Diego. Plants could have a capacity of either
200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the table
below, along with the cost of producing and shipping an air conditioner to each of the four
markets.
Ref:
https://homework.study.com/explanation/dryice-inc-is-a-manufacturer-of-air-conditioners-that-has-seen-
its-demand-grow-significantly-the-company-anticipates-nationwide-demand-for-the-next-year-to-be-180-
000-units-in-the-south-120-000-u.html
Question
Where should DryIce, Inc. build its factories and how large should they be?
Question 2:
Varun limited, a cash rich company, is a leading fruit processing company and involved in
business of fruit pulp/processed fruit and natural fruit syrup (sarbat). The fruit pulp is mainly
exported and has very limited market in metros, whereas sarbat is having very good domestic
market. They are selling their products under the very popular brand Natural. They have a
modern plant, which is located near Bhopal. The fruits purchased from various fruit cultivating
areas such as grapes from Nasik, etc. to make effective localized procurement they have 4
procurement centers they have very good cold storage facilities. The fruits are transported from
this procurement centre to factory using hired trucks. While transporting fruits from warehouse
to factory, there were shortages and also damages /decompositions that varied from 15 to 25
%and also there were inconsistency in transit time.
The "Natural" packaging is one of the reasons for popularity of this brand. The quality and taste
of syrup had created very good consumer base for sarbat. The sarbat is sold in ten different
variants and three different packaging sizes. The sarbat is sold in ten different variants and three
different packaging sizes. The sarbat loses the taste if it is kept for longer period (2 months) in
normal condition. The taste remains to its best if it is kept in cold condition. The sarbat is
distributed through 20 different distribution centers and are equally distributed in each zone.
These centers are directly reporting to factory and passes information once a week. These sarbat
were packed in very strong secondary packaging, even then there were 18%t 20% damages in
transit.
There was excess inventory in some of the distribution centers while shortages in others. Also,
specifically in summer season there were complaints about the quality (change in taste) of syrup.
Entry of multinationals with synthetic sarbat increased the competition and put lot of pressure on
"Natural". Managing director of Varun Ltd formed a team of senior executive to come with
concrete plan to fight the competition and increase market share and margin. And they decided to
appoint a Logistic consultant to overcome some of the problem. The Managing Director wants to
appoint you as logistics consultant to solve the following problem so that the company can fight
competition and increase market share and margin.
Questions:
1. Suggest proper transportation policy to ensure minimum transportation loss of fruits
and Sarbat and reduction in packaging cost.
2. Suggest the appropriate distribution method to maintain the quality of Sarbat
3. Suggest the use of information technology to substitute maintenance of high inventory
without affecting customer service level.
