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Compare and contrast the three options from the perspective of customer service.

Which do you believe will provide the best level of service? Why?

Answer

Comparing From a Customer Service Perspective Between Option 1 and Option 2, PFC is
improving order processing speed. Option 1 is improving this by expanding its less-shipping
warehouse automation. Option 2 achieves this by adding DC, but allows for small shipments
to locations close to DC.

Contrast from a customer service point of view - the difference with option 1 is that the
difference from option 1 is to improve the standing DC, but it is possible to consolidate
multiple orders and small shipments while improving speed and efficiency Because it still
takes time. Extend your fulfillment network by adding DCs instead of option 2 and changing
your operational processes to fulfill small or large orders based on customer needs. Through
the added DC, you can reduce the shipping time required to process the orders your
customers need. Option 3 does not specify how the company fulfills the order in outsourcing.

Best Service Level-In my opinion, Option 2 is the option that offers the highest service level.
This is because many warehouses can extend their order processing network to transport
products to other locations. The closer range is to keep one DC in Kentucky. Also, not only is
the transportation more efficient, but the order is more customer-specific, depending on the
store and individual customers. So customers can get the products they need in the quantity
they need faster.

Compare and contrast the three options from the perspective of cost. Which one do you
believe will provide the most economical solution for PFC? Why?

Answer

Comparing from the Perspective of Cost Option 1 leads through the same cost, which is
optional 2, as both attempts to execute smaller delivery commands for customer-specific
details. While the 3 options that you outsource depends on the provider of this service with
shipping, arrangements of delivery orders and speed / efficiency of the order termination.

Opposites from the perspective of cost option 1 runs through further shipping costs, while he
also underlines completed improvements to improve efficiency and speed. Option 2 adds
DCS, a lot of money to add buildings and order inventory and employees there. While the 3-
third-party logistics option goes through the costs to quickly distribute products, according to
the correct shipping order scale and speed.

The most economical solution I think that the best option can be optional in this case. 3,
although I need more data than the shipping costs. By outsetting these activities, however,
you will not add multiple locations so you do not wear the cost of building, do not improve
your speed or efficiency so you do not buy new devices to have given your needs, and you
will Do not have to buy more trucks or ships to fill all the small shipments that will go to
customers everywhere. Hopefully, PFC providers decide to use the DCS with many
customers as well as the transport to implement smaller shipments. And finally, there are
machines to produce products efficiently and quickly. With this choice, I think that PFC can
negotiate with suppliers, and bring them to a good price instead of eating a lot of money for
people who are expensive if they are all together.

What types of functional and cost trade-offs will Himmer need to analyze?

Answer

There are many tradeoffs between analytical capabilities and cost that determine options for
using Himmer. One option is offering multiple order types and low volume shipments from
the same upgraded DC location, but the warehouse location is improving. Functionally, it's
probably not the best choice because it takes a lot of execution to process these different
orders in the same one place. The system is just further improved. While some improvements
are beneficial and upgrades, like the other two options, can cost you exorbitant amounts,
shipping costs are dictated by the area you need to serve and the volume of small orders that
need to be met if they are ubiquitous. The second option is to add DCs where customers
believe they are in high demand, and to enhance these operational processes. Adding a
distribution location requires inventory with more employees, but at a higher cost because the
inventory is distributed across multiple locations and does not generate an excessive amount,
instead of being located in a single DC. It's expensive. A little inventory will be added. The
cost is higher with this option than option 1, but it is more functional than option 1. With
option 3, Himmer gives all aspects of order processing to third party logistics and therefore
relies on processing orders quickly and efficiently. The functionality is entirely based on a
third party logistics company as it will be shipped in the size of the order the customer wants.
However, this option also allows the PFC to focus on quality, demand planning, and
inventory management, so if you perform both successful operations, you can improve each
other. The cost to this can be very expensive for what they do, but it can also be reasonably
priced, probably as there are ongoing negotiations. It depends on whether the cost of making
all these changes is higher than outsourcing.

Which distribution options do feel gives PFC the best opportunity for future success?
Why?

Answer

The deployment option that gives you the best chance for PFC future success is option 2. I
think this is because adding DC will allow the company to have inventory at this location and
ship products from DC's location to customers faster. It is optimally positioned to provide
short distances to customers. Also, DCs can distribute smaller shipments easier and faster
because more DCs have inventory distributed among them. This is because the location is in
an area relative to the customer.

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