It is time for you to finalize your findings for your boss. He is expecting your analysis of your division’s operations and to produce a plan to improve operations with an eye for reducing costs.
Your boss wants you to summarize your recommendations in no more than 2–3 pages. Include your thoughts on the list below.
- Should production remain in Mexico or be brought back to the United States?
- If so, where would you recommend?
- Is the quality of production a consideration because of cheaper labor in Mexico?
- Could the quality of production be managed and monitored better if it was in the United States?
- Do transportation costs play a big enough factor to consider moving back to the United States?
- Should the product distribution network be changed? For example:
- Production in Mexico, central warehouse (NAW) in St. Louis, regional distribution centers in Pennsylvania, Georgia, Texas, Colorado, and California.
- Close NAW, ship from Mexico directly to regional distribution centers listed in letter “a” above.
- Close NAW, create a new central warehouse in Texas near the Mexico plant, ship to regional distribution centers in letter “a” above (with a distribution center in St. Louis/Chicago region).
- Close NAW, create a new central warehouse in Texas near the Mexico plant, ship directly to customers.
- Hire a professional distribution company to handle distribution.
- Can the sales forecast process be improved? If so, how?