Designing The Production Network At Coolwipes Ch 5 Page 217

Designing the Production Network at Coolwipes Ch 5 Page217case S

Designing the Production Network at CoolWipes (Ch 5) (page217) Case Study Designing the Production Network at CoolWipes Guidelines for Written Case Analyses: The reports are graded for both content and report presentation. The purpose behind each case is to use the tools, concepts, and techniques studied to help the organization make a business decision. The report should be written as if the group has been tasked by the organization to provide a recommendation for the organization to adopt. A good paper should clearly and succinctly state the recommendations in the first paragraph to set the stage for the reader. The questions listed on the case should be used as a guide to structure the report.

Facts in the case need not to be restated unless they are used to make a specific point. The report should NOT be a Question & Answer format where each question is listed and answered. Instead, the report represents your analysis of the situation and the rationale for your recommendation. The analysis to support your recommendation should consider the advantages and the potential pitfalls of adopting it. The analysis explains the “why” of your recommendation.

In some cases, your rationale and logic behind the analysis is more important than the course of action that you have selected. An adequate analysis is a time-consuming and intellectually challenging task. Guided by the case questions, the objective is to evaluate a complete range of alternatives and discuss the consequences of your recommendation. Reports should be typed with 1.5 line-spacing and should not exceed 5 pages, not including appendices and exhibits. Exhibits appended to the reports need not be typed, but should be neat and easy to understand.

Paper For Above instruction

The case study “Designing the Production Network at CoolWipes” presents a complex scenario involving decisions about supply chain design, production location, and network configuration. As consultants asked to recommend an optimal production network, it is essential to analyze various factors—including costs, responsiveness, risk, and flexibility—to guide the organization toward an effective solution.

Introduction

We recommend that CoolWipes adopt a hybrid production network that balances centralized manufacturing with regional production facilities. This approach maximizes cost efficiencies while maintaining flexibility to respond to local demand variations. The core rationale is to centralize high-volume production in cost-effective locations for economies of scale, while establishing regional plants to cater to specific markets, thereby reducing lead times and transportation costs.

Analysis of Alternatives

One alternative involves fully centralized production at a single location, which may minimize manufacturing costs but can increase lead times and transportation expenses, thereby reducing responsiveness to market demands. Conversely, a fully decentralized network—each regional hub operated independently—could provide high responsiveness but at a significant increase in costs and complexity.

The hybrid model offers a middle ground by clustering high-volume, standard products in a central facility and regionalizing the production of customized or time-sensitive products. This configuration leverages economies of scale and minimizes inventory costs while enhancing responsiveness and customer service levels. Additionally, this approach mitigates risks associated with over-dependence on a single facility, providing operational resilience.

Advantages of the Proposed Design

• Cost Efficiency: Centralized manufacturing enables bulk purchasing and optimized resource utilization, reducing unit costs.
• Responsiveness: Regional facilities shorten lead times and improve service levels, especially for customized products.
• Flexibility and Risk Mitigation: Multiple plants reduce vulnerability to disruptions and support rapid adaptation to market changes.
• Customer Satisfaction: Enhanced delivery speed and customization improve customer experience and loyalty.

Potential Pitfalls and Challenges

• Complex Logistics Management: Coordinating between centralized and regional facilities could increase operational complexity.
• Higher Capital Investment: Setting up regional plants requires significant initial investment and ongoing maintenance costs.
• Inventory Management: Balancing inventory levels across the network necessitates sophisticated planning to avoid excess or shortages.
• Change Management: Transitioning to the hybrid model may encounter resistance from staff and management accustomed to existing systems.

Conclusion

Considering the analysis, the optimal solution for CoolWipes involves a hybrid production network that combines centralized bulk manufacturing with regional facilities tailored to local market needs. This configuration supports cost efficiencies, operational flexibility, and responsiveness, aligning with the company’s strategic objectives. Carefully managing logistics, investments, and change processes will be vital to successfully implement this design and sustain competitive advantage.

References

• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. 6th Edition. Pearson.
• Harrison, A., & van Hoek, R. (2011). Logistics Management and Strategy: Competing Through the Supply Chain. 4th Edition. Pearson.
• Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. 3rd Edition. McGraw-Hill.
• Christopher, M. (2016). Logistics & Supply Chain Management. 5th Edition. Pearson.
• Slack, N., Brandon-Jones, A., & Burgess, N. (2019). Operations Management. 9th Edition. Pearson.
• Mentzer, J. T. (2004). Fundamentals of Supply Chain Management. Sage Publications.
• Ballou, R. H. (2004). Business Logistics/Supply Chain Management. Pearson Education.
• Waters, D. (2010). Supply Chain Management. Palgrave Macmillan.
• Kannan, P., & Tan, C. (2006). Offshoring and its Impact on U.S. Supply Chain Operations. Journal of Supply Chain Management, 42(4), 54-66.
• Fugate, B. S., et al. (2010). Supply Chain Management: Implementation Issues and Research Opportunities. Journal of Business Logistics, 31(2), 175-184.