Answer 1:

The following logistics and cost constraints imposed on kqi by the chain store’s request to shorten cycle
times and is described below:

1. Adhere to the RFID (radio frequency identification) initiatives established by the customer.
2. Ahead-of-time notification of shipments.
3. Make the inventory more visible.
4. Due to this request the price for handling and shipping orders would go up.
5. Rather than processing pallet-quantity orders from local distribution centers, the logistics team
would have to handle smaller, case-quantity orders for each location (RDC).
6. Use more costly less-than-truckload services and have them delivered to the stores.

ANSWER 2:

I believe that Francisco's suggestion has some potential. However, it won't be beneficial over the long
term.

To maximize efficiency, the distribution centers would be thoughtfully positioned in each region's high-
demand areas. In comparison to the current KQI facility, a network-based ordering system would be
able to process orders more quickly and deliver goods at a lower cost. However, it would increase
capital expenses, inventory levels, and transportation costs.

ANSWER 3:

I would be recommending that the following facility ownership structure be put into place if KQI moves
forward with the RDC plan:

A sole proprietorship would be the ideal type of company structure for a regional distribution plan.
Because under this plan, products would be distributed by RDCs to specific stores, who would then be
responsible for making deliveries using their own private fleet. Moreover, the order would be processed
and delivered within five working days of being placed under this plan, which would involve a separate
order for each store.

ANSWER 4

Establish Six RDC Locate DC in high Process order faster

facility network demand area and deliver
within a region products.

Decrease
company’s Maintain a
minimum level Enable facility to
overall inventory
of safety stock handle case picking
and pallet cross
docking