Case 11-1 BathKing Industries, P495-496 Overview of the case study

The case is talking about the Bath King Industries; The Company is straining to produce enough products to meet retailer demand. However there is a new problem on the shipment cost and cycle time by shipping orders directly to the customs stores.

Question: Question 1 The smaller chain stores requested that BKI industry takes too long time on shipping orders directly to the customs stores. The BKI currently use the national DC, its talks weekly order and after the product arrived they allocated by the RDCs to individual stores and delivered by their private fleet. As the new way it will reduce the time, however for the cast will increase very high. Also for the ordering cost will increase as they would now have to process smaller, case quantity orders for each store.

Question 2 For the second time idea, it was good, as they reduce the shipment cost and makes the orders process faster, but also the company's overall inventory would decrease. Therefore they reduce the inventory cost as well.

Question 3 If BKI moves forward with the RDC plan, I think the most suitable one is that the networks ability to process orders faster and deliver product cheaper than

the current they have, and the facilities would be able to handle case picking, pallet cross docking and some value-added services. Because as it shows that this plan makes the ordering time faster, this will result that they can reduce cycle time, and it cheaper than the current they have, therefore when they reduce the time they reduce the cost as well. So I thinking this should be the chose.

Question 4