• Unitech Computer Co., Ltd.: The Second Distribution Center

Abstract

This case is about the location and space capacity decisions of the second distribution center (DC) in a 3C products distribution firm. Because existing DC is almost full loaded, top management of the firm are considering construct a second DC. A junior manager of the distribution center is asked to propose a preliminary planning for the location, space capacity and human resources of the second DC. In addition to the basic company background, this case discloses necessary decision information and relevant concept through describing the dialogs in a company conference. Through this case, students are supposed to: 1. Learn how to decide the location of a DC, considering company goals, competition and geographical distribution of the customers. 2. Understand different DC designing concepts and their influence on physical distribution costs. 3. Learn how to calculate the necessary space capacity and human resources of the DC using history data, especially the sales, turn-over rate and other operational efficiency records of a firm.

Keywords: Distribution Center, Turn-over