1. Discuss the "reduction of inventory" when the company reduces the number of warehouses. 2. What is the impact on customer service level when only four (4) warehouses are now serving the entire ASEAN region? 3. Discuss where the four (4) distribution centre should be located. Explain your choice(s)

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1. Discuss the "reduction of inventory" when the company reduces the number of warehouses. 2. What is the impact on customer service level when only four (4) warehouses are now serving the entire ASEAN region? 3. Discuss where the four (4) distribution centre should be located. Explain your choice(s).
A JE
ORAM
My mar
(Burma)
Naypyidaw เชียงใหม่
နေပြည်တော်
Andaman Sea
АСЕН
Chiang Mai
เทศบาลนคร,
ms 200 km
This map was created by a user. Learn how to create your own. X
Hanoi
Laos
HAINAN
Thailand
Bangkok
กรุงเท มหานคร
Pattaya City
เมืองพัทยา
Gulf of
Thailand
Medan
0
ວຽງຈັນ
Vientiane
KEDAH
PENANG TERENGGANU
PERA
Malaysia
Kuala Lumpur
Cambodia
RIAU
WEST SUMATRA
Singa re
JAMBI
SOUTH SUMATRA
LAMPUNG
Vietnam
Ho Chi
Minh City
RIAU ISLANDS
SARAWAK
Prace
Islands
WEST
KALIMANTAN
Mong Kong
香港
Java Sea
South
China Sea
Spratly
Islands
CENTRAL
KALIMANTAN
SABAH
Brunei
NORTH
KALIMANTAN
EAST
KALIMANTAN
SOUTH
KALIMANTAN
Kaohsiung
City
Luzon
Manila
Mindoro
Palawan
Philippes
Panay
Cebu
Negros
Sulu Sea Mindanao
Celebes Sea
CENTRAL
SULAWESI
WEST SULAWESI
SOUTH SULAWESI
Indonesia
Makassar
Jakarta
Surabaya
BanduGoogle My Maps
BALI WEST NUSA EAST NUSA
TENGGARA TENGGARA
Map: ASEAN Countries
Revenue
The company's revenue for the last 3 years is:
Year
2019
2020
2021
Revenue USD 50 million USD 75 million 150 million
Cagayan
de Oro
Davao
NORTH SULAWESI
Manado
NOR
NORT
Banda:
Timor-Les
Transcribed Image Text:A JE ORAM My mar (Burma) Naypyidaw เชียงใหม่ နေပြည်တော် Andaman Sea АСЕН Chiang Mai เทศบาลนคร, ms 200 km This map was created by a user. Learn how to create your own. X Hanoi Laos HAINAN Thailand Bangkok กรุงเท มหานคร Pattaya City เมืองพัทยา Gulf of Thailand Medan 0 ວຽງຈັນ Vientiane KEDAH PENANG TERENGGANU PERA Malaysia Kuala Lumpur Cambodia RIAU WEST SUMATRA Singa re JAMBI SOUTH SUMATRA LAMPUNG Vietnam Ho Chi Minh City RIAU ISLANDS SARAWAK Prace Islands WEST KALIMANTAN Mong Kong 香港 Java Sea South China Sea Spratly Islands CENTRAL KALIMANTAN SABAH Brunei NORTH KALIMANTAN EAST KALIMANTAN SOUTH KALIMANTAN Kaohsiung City Luzon Manila Mindoro Palawan Philippes Panay Cebu Negros Sulu Sea Mindanao Celebes Sea CENTRAL SULAWESI WEST SULAWESI SOUTH SULAWESI Indonesia Makassar Jakarta Surabaya BanduGoogle My Maps BALI WEST NUSA EAST NUSA TENGGARA TENGGARA Map: ASEAN Countries Revenue The company's revenue for the last 3 years is: Year 2019 2020 2021 Revenue USD 50 million USD 75 million 150 million Cagayan de Oro Davao NORTH SULAWESI Manado NOR NORT Banda: Timor-Les
Background Information
After operating a number of years in South East Asia, a company has decided to reduce
the number of its warehouses from 12 to 4.
The company is serving the ASEAN region with a population of about 661.5 million.
Products & Distribution
The Company is a major distributor of consumer medical equipment such as pedometer,
heart-beat meter, blood pressure meter and others. It buys products from Canada, US,
Europe and Japan.
Country
Original
Number of DC
Location of DC
No of
Retailer(s)
GDP (2021*)
(in billion USD)
Brunei
0
3
15.69
Cambodia
0
2
26.08
Indonesia
3
Jakarta, Surabaya,
Medan
20
1,150.25
Lao
0
0
1
19.38
Malaysia
2
KL, Kuching
30
371
Myanmar
0
1
66.74
Philippines
1
Manila
20
385.74
Singapore
2
Singapore
40
378.65
Thailand
2
Bangkok
40
546.22
Vietnam
2
HCM, Hanoi
20
368
Total
12
177
3,327.75
*Note: These countries are supported by Singapore DC
Transcribed Image Text:Background Information After operating a number of years in South East Asia, a company has decided to reduce the number of its warehouses from 12 to 4. The company is serving the ASEAN region with a population of about 661.5 million. Products & Distribution The Company is a major distributor of consumer medical equipment such as pedometer, heart-beat meter, blood pressure meter and others. It buys products from Canada, US, Europe and Japan. Country Original Number of DC Location of DC No of Retailer(s) GDP (2021*) (in billion USD) Brunei 0 3 15.69 Cambodia 0 2 26.08 Indonesia 3 Jakarta, Surabaya, Medan 20 1,150.25 Lao 0 0 1 19.38 Malaysia 2 KL, Kuching 30 371 Myanmar 0 1 66.74 Philippines 1 Manila 20 385.74 Singapore 2 Singapore 40 378.65 Thailand 2 Bangkok 40 546.22 Vietnam 2 HCM, Hanoi 20 368 Total 12 177 3,327.75 *Note: These countries are supported by Singapore DC
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