UNIVERSITY OF NAIROBI
SCHOOL OF BUSINESS
DPS 202: FUNDAMENTAL OF SUPPLY CHAIN MANAGEMENT
Practice questions on facility location/warehousing
KitchenWare (case study)
KitchenWare is a retailer of electrical kitchen items. The senior management team has decided to centralise and integrate the company’s warehouse operation into a national distribution centre warehouse (NDCW) to supply all of its retail operations across the country. Previously, each retailer had its own warehouse function and purchasing department, which purchased and stored products for sale at each retailer’s premises.
Adam, a warehouse team leader at one of KitchenWare’s retail outlets, has been promoted to warehouse manager for the NDCW. This role comes with a much higher level of responsibility than supervising the warehouse at a local retail outlet.
The decision by the senior management team as to where to locate the NDCW has yet to be made. The company is also considering selling outdoor electrical items to compliment its range of indoor household products. Adam will need to consider this opportunity whilst designing the warehouse operation.
(a) Explain THREE possible reasons why the senior management team of KitchenWare has decided to create an NDCW. (b) Describe TWO ways in which Adam will need to change his approach from supervising a local retail warehouse facility to managing the NDCW. (4 marks)
(c) Identify TWO factors the senior management team needs to consider in determining an appropriate location for the NDCW. (d) Designing the new warehouse will be Adam’s responsibility. Identify THREE factors Adam will need to consider and explain why each is important to KitchenWare’s plan for the future.
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