Peer-graded Assignment: Build a

Logistics Network

Product: The product I’m planning to sell is a coconut scraper, an important utensil to shave
coconuts in Kerala. Having only a limited supply of the cases, I decide to have only 10000
coconut scrapers.
Warehouse: We only need 4 warehouses to store these cases so that it can reach the most
customers within its radius. From the list of mayors, we can decide the best locations for these 4
warehouses. One of the warehouses will have the greatest number of the product based on the

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population density of the regions in the radius.

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The map that represents the potential customers(mayors) for the product:

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Based on this map I’ve decided to go with 4 warehouses, wherein the number of coconut
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scrappers vary between 2000- 4000. This is to ensure that there is greater number of product
available to the densely populated areas and avoid wastage of the product. Also, since I’ve
selected 4 warehouses, it should be such that the product only travels 350 miles to reach the
customer. According http://www.chicago-consulting.com/ten-best-warehouse-networks-
consultant-usa/, I’ve selected these warehouses to best accommodate the customer’s needs,
especially when it comes to servicing. The warehouse I’ve selected are as follows:

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The list below represents the warehouse selected and number of available products-

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Warehouse Items
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940 W Bethel Road Coppell, TX 75019 2500
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500 McCarthy Dr, Lewisberry, PA 17339 3500
6855 Shannon Pkwy, Union City, GA 30291 2000
5050 W Mohave St, Phoenix, AZ 85043 2000
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The warehouse at Philadelphia will have the highest number of products as more interested
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customers are served. The warehouses must operate within a radius of 750 miles to effectively
serve the customers. It should be easy for the customer to reach the warehouse in case they
need to replace or send the item for replacement. I believe the selected warehouses will fulfill
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the requirements.
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Best route:
Below I have calculated the distance of the customers to the nearest warehouse, they are as
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follows:
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Customer-Warehouse Distance Route

500 McCarthy Dr, Lewisberry, 661.61 miles Air freight and truck
PA 17339 to 121 N LaSalle St, delivery
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Chicago, IL 60602
500 McCarthy Dr, Lewisberry, 112.13 miles Truck delivery
PA 17339 to 451 Indiana
Avenue NW, Washington, DC
500 McCarthy Dr, Lewisberry, 405.6 miles Truck Delivery

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Customer- Distance Route Transit
Warehouse
500 661.61 Air 1 day
McCarthy miles freight transit
Dr, and
PA 17339 to 1 City Hall Square, Lewisberry, truck
Boston, MA 02201 PA 17339 to delivery
500 McCarthy Dr, Lewisberry, 121 196.1
N miles Truck Delivery
PA 17339 to City Hall Park,LaSalle New St,
York, NY 10007 Chicago, IL
500 McCarthy Dr, Lewisberry, 60602 108.71 miles Truck Delivery
PA 17339 to 1401 John 500 F. 112.13 Truck 1 day
Kennedy Blvd, Philadelphia, PA
McCarthy miles delivery transit
19107 Dr,
6855 Shannon Pkwy, Lewisberry, Union 17.6 miles Car delivery
City, GA 30291 to 68 Mitchell St
PA 17339 to
SW, Atlanta, GA 30303 451 Indiana
6855 Shannon Pkwy, Avenue Union 667.5
NW, miles Air freight delivery and
City, GA 30291 to 3500Washington, Pan truck delivery
American Dr, Miami, FL 33133 DC

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940 W Bethel Road Coppell, 500TX 22.51 miles 405.6 Truck 1 Carday delivery

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75019 to 1500 Marilla St,
McCarthy miles Delivery transit

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Dallas, TX 75201 Dr,

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940 W Bethel Road Coppell, Lewisberry,
TX 260.81 miles Truck delivery
75019 to 901 BagbyPA St,
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Houston, TX 77002 1 City Hall
5050 W Mohave St, Phoenix, Square,
AZ 367.79 miles Truck delivery
85043 to 200 N Spring St, Boston,
Los MA
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Angeles, CA 90012 02201

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500 196.1 Truck 1 day

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McCarthy miles Delivery transit

Dr,
Lewisberry,
PA 17339 to
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City Hall
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Park, New
York, NY
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500 108.71 Truck 1 day

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McCarthy miles Delivery transit

Dr,
Lewisberry,
PA 17339 to
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1401 John F.
Kennedy
Blvd,
Philadelphia,
PA 19107
6855 17.6 Car 1 day
Shannon miles delivery transit
Pkwy, Union
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City, GA
30291 to 68
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Mitchell St
UPS transits-

Justification: From this table it can be seen that the shipping between 300-400-mile sis almost
always done through UPS ground service, and anything above 600 miles is done through air
shipping, making 1 day transits possible. I feel the warehouse placements are perfect to serve
the selected customers with ease and minimal cost even when we consider fuel cost. Another
advantage of the selected warehouses is that it makes customer returns possible and can help
provide service to the customer whenever they require it.

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1. What did you find most surprising in this assignment?

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2. What was the most difficult part of this assignment?

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3. Which part of the assignment was the most fun?

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