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Supply chain managment - Case Study Example

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What factors help to explain why J & J historically had as many as 12 distributions centers in Europe? There are two reasons that help explain why J&J historically had 12 distribution centers in Europe. The first because of the low transportation costs of goods due to the close presence of facilities to the consumers…
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Supply chain managment
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Supply chain managment

Download file to see previous pages... Step 3 of the supply chain network design, which is examine the logistics/supply chain network alternatives would be relevant to the task faced by J&J in Europe. As J&J is focusing on reducing overall costs with a new development in terms of the rising transportation cost due to the decrease in the number of facilities; this step will help apply a suitable qualitative model to the current logistics system and to the alternatives systems under J&J’s consideration hence facilitating the formulation of their overall supply chain network design. Also Step 4: Conducting a facility location analysis will further address their location concerns by effectively analyzing local factors and resources of different localities and choosing the one that benefits them most. Lastly Step 6, developing an implementation plan will address the qualitative concerns of J&J as they despite the changes in their network design want to maintain a high level of product and services quality. Are there other factors the network optimization study should have considered? The network optimization study should have also considered factors such as environmental issues like disaster planning, competitive pressures and the economic climate. The sensitivity issues such as parametric analysis of inputs should also have been considered. ...Download file to see next pagesRead More
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