How many DCs should be built and where should they

be located?
Different delivery modes

 Shipping to customers
 Picked by the customer at stores

More DCs to fulfill both the needs Locations nearer to different retails shops to reduce transportation.

MC master

 Focused on online orders

 Shipments
Large capacity DCs in less number

 To ensure timely delivery

 To cost reduction
 Concentrated towards industrial area

How should product stocking be managed at the DCs?

Should all DCs carry all products?
 Feedback from retail stores helps to forecast the demand of various MRO items
 Stock should fulfill both retail and online needs.
 Certainty in demand to some extend
McMaster

 Online ordering
 Flexible Demand
 Keep a buffer stock of all items
 Ensuring timely delivery

What products should be carried in inventory and what

products should be left with the supplier to be shipped
directly in response to a customer order?
 Importance of item (Vital)
 Availability of item
  Demand of the item
 Responsibility of Suppliers

What products should W.W. Grainger carry at a

store?
 Depending on the regional demand
 Items having special priorities
 Valuable Items
 Availability and durability

How should markets be allocated to DCs in terms of

order fulfillment? What should be done if an order
cannot be completely filled from a DC? Should there be
specified backup locations? How should they be
selected?
 Timely delivery
 Minimum transportation cost
Grainger

 Large number retail stores and DCs

 If single DC can’t meet the demand, they can go for another DC
 Location of backup should be accessible from different points of demand.

Mc Master

 Limited DCs
 Large inventory
 Responsible suppliers
 Need of forecast