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Location case studies

Dr. Ron Lembke. Location case studies. Case Study: Importing from China to E. Coast. Customer Location. China to U.S. Container Rates. NY / NJ $3,600 36 days. Wilmington DE $3,950 36 days (door). Norfolk $3,600 34 days. Charleston $3,600 35 days. Atlanta $3,200 37 days (door).

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Location case studies

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  1. Dr. Ron Lembke Location case studies

  2. Case Study:Importing from China to E. Coast

  3. Customer Location

  4. China to U.S. Container Rates NY / NJ $3,600 36 days Wilmington DE $3,950 36 days (door) Norfolk $3,600 34 days Charleston $3,600 35 days Atlanta $3,200 37 days (door) New Orleans $3,200 36 days

  5. Drayage Rates Allentown 305 575 428 Elizabeth, NJ 850 Harrisburg 295 343 350 Philadelphia 305 265 375 850 Wilmington 656 825 750 Baltimore 305 375 750 780 950 1125 725 950 888 Roanoke 750 Norfolk

  6. China to Long Beach

  7. Landbridge Data Columbus $3000, 21days Cincinnati $2925, 21d Louisville $3050, 20d Murray $3350, 22d Nashville $3300, 22d Memphis $2900, 18.5d Atlanta $3300, 23d

  8. Distribution Center Location • Minimize demand-weighted distance: distance to each customer times the volume of shipments to the customer • How many to build? • Where to build?

  9. Case Study: Retailer • Location of a 5th returns processing facility • Addresses of 2125 Continental U.S. stores • Location of 4 Return Goods Processing Centers • List of all return shipments from each store, including pounds and # pallets • Calculated actual highway distances from every store to its DC

  10. Local Streets

  11. Transportation Cost Approx. • Current Pallets: 205,254 • Current Pallet Miles: 77.9m • Cost / pallet-mile 11.68 cents • Pallet-Mile = 1 pallet traveling 1 mile • Minimize average distance traveled

  12. Current RCs

  13. Dallas Realignment

  14. Close 1 Existing RC

  15. Summary • Transportation costs are a huge factor • Street-level approximation of transportation distances unnecessary • “Straight Line” distances are usually fine • “Great Circle” distances take the curvature of the Earth into account • Both inbound and outbound costs need to be taken into account

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