1 You are the logistics manager for a company that supplies

1.      You are the logistics manager for a company that supplies environmental cleanup equipment to the petroleum industry. Your company’s main production plant and only warehouse is located just outside of Chicago, Illinois. You have been asked to recommend how many and where to locate additional warehouses in the U.S. to better support your customers and lower transportation cost. This map of Pipeline Incidents shows all of the significant pipeline spills in 2010. Outline your recommendations for the locations (i.e., city, state) of additional warehouses and provide your justification for each location

Alaska WA SHINGTON ORTH DAXOTA MONTA HAMPSHIR OREGONIDAHD TH NEM SYLVANIA OWA . JERSE Pacific Ocean NEBRA SKA :N013 UTAH COLORA0 AORNIA. TUCKY NES Hawaii ARIZONA NEW CAROLINA A GEORGIA BAMA TEXAS LOU Pacific D Ocean Pacific Ocean Guif of Mexic Abems Proi Significant Pipeline Incidents -2010

Solution

In order to firm up on our logistics planning we need more information like the cost of transportation from the wharehouse, constraints in terms of warehouse location, the area that can be covered with a particular warehouse, the cost of setting up a warehouse, operational cost etc. . However just by simply looking at the map of pipeline incidents it is evident to set up a warehouse where the dots are much intense and limit to the locations where we do not have such incident history.

I would suggest 1 ware house in each of the locations mentioned below.