Supply Chain Global Sourcing problem need help with. Require knowledge and use of Simflex software. Any help will be greatly appreciated.
Global Sourcing ?Supply Chain Management
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Please go to the site and create the model using the software.
Customer ABC is evaluating various supply chain strategies for their next generation server product for
the US Market. Their current manufacturing location is based in Columbus, Ohio. The Columbus facility
makes all the components and final configuration/assembly of the server. The end customer points are
the top 4 locations (states) in the US by Population. The annual volume of demand for this server
product in the US is estimated to be 50K units. The product flows directly from Columbus to the end
customer locations. The mode of transport in general is FTL with 5% of the product shipments expedited
The BOM of the server product is composed of the following components:
Power Supply Unit
The customer has expressed interest in setting up an alternative manufacturing facility either in
Guadalajara, Mexico or Zhuhai China. With the proposed Guadalajara solution, the split in
regular/expedited shipments will be the same as in the case of shipments from the Columbus facility to
US customers. With the proposed Zhuhai solution, there is to be a DC located in Fontana, California
where product is warehoused before being shipped to final end customer locations. The amount of
inventory held in the Fontana DC facility is 21 DOI to cover for transit time of shipments from China. It is
estimated that 10% of shipments from China will need to be expedited and 10% of shipments out of the
Fontana DC are expedited as well. All manufacturing facilities are to hold 2 weeks? worth of components
in inventory. No FG inventory is held in any of the locations apart from the DC in Fontana.
Inventory Value (USD)
Items Per Pallet
Material & Value Added Costs
Material Costs (USD)
Value Added Costs (USD)
Fixed Costs of Sites
Fixed Costs (USD)
Warehousing costs (USD)
Dispatching Storage Unit
Monthly Cost per Storage Unit
Reception of Storage Unit
Important: Please Use the SimFlex Lite tool to evaluate the trade-offs among the proposed supply
chains. Where would you locate the manufacturing facility?Columbus, Guadalajara, or Zhuhai?
Provide a brief report with supporting tables to justify your choice.
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