Case 4 Westminster.docx - Running Head WESTMINSTER COMPANY...

Westminster 1 overview In this case study we will review the supply chain and logistics functions of Westminster Pharmaceuticals. Westminster's business consists of three separate organizations that offer individual products. In this article I will explain the changes considered in the supply chain structure, that is, the organization of the fixed warehouse structure and maintenance of integrated shipping for cost reduction.

How will the three new options of Westminster 2 affect transfer and customer fare? why? Although this system reduces shipping costs through corporateization, it may increase. In addition, since the shipping office receives additional items, the shipping office will offset the transfer costs because the shipping office will ship the plant from each of the three organizations to the arbitrary distribution center, consolidate the cargo, aggregate the cargo, and increase the time and cost of merging the merchandise There is an effect. It becomes complicated [Bar 17]. The delivery costs of the customer related to the charges charged by the external logistics company may be less or more prominent than the existing distribution channels. However, because delivery is not the focus of Westminster, outsourcing can reduce costs. Therefore, while other parties can do, the ability to generate profits is not necessary [Bow 13]. How does warehouse integration impact inventory holding costs, customer service levels, and order contract rates?

Westminster needs to consider three alternative strategies for logistics change. The first choice is to merge the company's warehouse, the other is to use a public warehouse, and finally the third possible solution is to use a private warehouse. Each method has advantages and disadvantages. Before deciding which warehouse operations are most suitable for Westminster (Westminster case studies), they must investigate them. Integration of warehouses makes it easier to ship from logistics center to logistics center, resulting in reduced shipping and transfer costs of customers, so you can benefit from transportation economies. Integration of warehouses may also have a significant impact on transportation costs. Firstly, inventory shipping costs will be reduced due to improved equipment use and reduced duplication of effort.

Regarding logistics adjustment, Westminster has three options to consider. The first option is to consolidate the warehouse. The second choice is to use a public warehouse and the third option is to use a private warehouse. Before deciding which type of storage to use, all options have advantages and disadvantages. The integration of Westminster's system will make it easy to benefit the transportation economy. It is easy to collect truck cargo from the distribution center. This will reduce customer shipping and transfer costs. The impact of warehouse integration has a major impact on transportation costs. Firstly, inventory costs are reduced. This is the result of reducing duplication of work and using a better facility.