1, Regional Demand At SportStuff, Growth rate, 2. 3, Zone, Demand (), Demand (). 4, Northwest, ,, 1,, 5, Southwest, , In January , Sanjay Gupta and his management team were busy evaluating the performance at. over the previous year. Total demand had. Managing Growth at Sport Stuff – Download as Excel Spreadsheet .xls), PDF File .pdf), Text File .txt) or read online.

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Documents Flashcards Grammar checker. Capacitated Plant Location Model advertisement.

Sportstuff Case

Managin chain optimization 1. Capacitated Plant Location Model Chopra and Meindl, SC consulting, a supply chain consulting firm, has to decide on the location of its home offices. Their clients are nanaging located in the 16 states in Att 1 below. There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The expected numbers sportstuff.com trips to each state and the travel costs from each potential site are also shown in Table 1.

What is the annual cost in terms in terms of the facility and sportstuff.ckm How many consultants should be assigned to each office? What is the annual cost of this network?

How much is this policy likely to add to cost compared to allowing multiple offices to handle a single state? Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in Table 2 along with the cost of producing one ton of ink at each facility.

The production costs are in the local currency of the country where the plant is located. Sportstuff.vom at each market is shown in Table 2.

Transportation costs from each plant to each market in US dollars are shown in Table 2. Management has to come up with a plan for Managing Growth at SportStuff. Demand had grown by 80 percent over the year. This growth, however, was a mixed blessing. The venture capitalists supporting the company were very pleased with the growth in sales and the resulting increase in revenue.

Sanjay and his team, however, could clearly see that costs would grow faster than revenues if demand continued to grow and the supply chain network was not redesigned. They decided to growty the performance of the current network to see how it could be redesigned to best cope with the rapid growth anticipated over the next three years. Parents complained about having to discard expensive skates, skis, jackets, and shoes because children outgrew them rapidly. Sanjay’s initial plan was for the company to purchase used equipment and jackets from families and any surplus equipment from manufacturers and retailers and sell these over the Internet.


By this time a variety of new and used products were sold and the company sportstufr.com significant venture capital support. In JuneSanjay leased part of a warehouse in the outskirts of St. Louis to manage the large amount of product being sold.

Suppliers sent their product to the warehouse. Customer orders were packed and shipped by UPS from there. As demand grew, SportStuff. Management divided the United States into 6 customer zones for planning purposes. Demand for each customer zone in was as shown in Table 4. Sanjay estimated that the next three years would see a growth rate of about 80 percent per eportstuff.com, after which demand would level off.

One option was to lease more warehouse space in St. Other options included leasing warehouses all over the country. Leasing a warehouse involved fixed costs based on the size of the warehouse and variable costs that varied with the quantity shipped through the warehouse.

How Does One Answer This Case Study On ‘Managing Growth At ‘ ? – Blurtit

Four potential locations for warehouses were identified in Denver, Seattle, Atlanta, and Philadelphia. Warehouses leased could be either small aboutsq. Small warehouses could handle a flow of up to 2 million units per year whereas large warehouses could handle a flow of up to 4 million units per year.

The current warehouse in St. The fixed and variable costs of small and large warehouses in different locations are shown in Table 5. Use the following inventory costs: An average customer order contained four units. UPS charges were based on both the origin and the destination of the shipment and are shown in Table 6.


Management estimated that unbound transportation costs for shipments from suppliers were likely to remain unchanged, no matter what the warehouse configuration selected.

What is the cost SportStuff. What supply chain network configuration do you recommend for SportStuff. Moon Xportstuff.com is a small manufacturer of servers that currently builds all of its product in Santa Clara, California. As the market for servers has grown dramatically, the Santa Clara plant has reached capacity of 10, servers per year.

Moon is considering two options to increase its capacity.

Moon must make this decision for a two-year time horizon. During each year, demand for Moon servers has an 80 percent chance of increasing 50 percent from the year before and a 20 percent chance of remaining the same as the year before.

Sportstuff Case

Molectron’s a may change as well. They are fixed for the first year but have a 50 percent chance of increasing 20 percent in the second year and a 50 percent chance of remaining where they are.

Use a decision tree to determine whether Moon should add capacity to its Santa Clara plant or if it should outsource to Molectron. What are some other factors that would affect this decision that we have not discussed?

Steel Appliances SA manufactures high-quality refrigerators and cooking ranges. SA has one assembly factory located near Denver from which it has supplied the entire US. Demand has grown rapidly and the CEO of SA has decided to set up another factory to serve eastern markets. The supply chain manager is asked to find a suitable location for the new factory, which will serve markets in Atlanta, Boston, Jacksonville, Philadelphia and New York.

The coordinate location, the demand in each market, the required supply from each parts plant, and the shipping cost for each supply source is shown in Table 7. Sample essay questions for Chapter 3: Data Warehouse Powerpoint Slideshow. Business Intelligence Lecture Slide.

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