International Supply Chain Design

Read the case study provided and compile a 64 week sourcing and supply chain network strategy/plan for each of the 4 garment types included in the case study. You will report your choices in a 3,000 words report. You must use relevant academic literature to justify your choices. To facilitate your choices you can consider the following: • Assess and select suppliers. • Consult your current inventory levels and decide on an ordering pattern (how much to order, how many orders and when to place the orders). • Select the transportation network of your goods from factory to the 4 Regional Distribution Centres. • Decide between consolidation and cross-docking locations. • Calculate and examine transportation, ordering and warehousing costs. • Consult the brand strategy marketing reports provided by the marketing department (marketing strategy for each product and forecast of demand) and decide what type of supply chain each of the products need. In addition to your report, in an appendix or a separate file, you can provide the supplier evaluation scorecards, and snapshots of the (or the) spreadsheets you used for the calculations supporting your decisions. You should also justify and present any assumptions made for your calculations. Please read and follow the instructions below carefully: • The report should be 3,000 words ±10%. The word count excludes figures and tables, table of contents, reference list, appendixes, etc. • It should include an appropriate range of referenced material, using the Harvard Referencing style. Your report should have no fewer than 15 relevant academic references that support your argument. • The assignment accounts for 100% of the final course mark.

Marking criteria: The marking criteria are listed below. Make sure that you read and understand the importance of each section. This will be reviewed in class on the last day. • Presentation (Essay format is expected, Intelligibility, clear structure) (Max 5) • Evidence of in-depth theoretical understanding of the subject (Identification of relevant material, appropriate use of theory, full and accurate referencing, justification of choices) (Max 30) • Students to provide evidence of calculation and assumptions made in their decision making process (Demonstration of formulae used for calculations, and justification of any assumptions) (Max 15) • The ability to relate concepts and theories to contemporary examples (Evidence of analytical skills, link between theory and practice, use of evidence (i.e. calculations)) (Max 25) • A critical and original appreciation of the main arguments (Logically and coherently argued, Development of own ideas/originality) (Max 25) 

CASE STUDY1: It is close to the end of the year, and you are preparing the ordering plans for the new planning period. You work for a fashion clothing company, and you are responsible for the supply of 4 garments (See Table 1). The 4 finished products can be sourced globally from 8 factories located as follows: 1x Italy, 1x Morocco, 1x Romania, 2x India, 3x China (See Figure 1). Sourcing and supply chain network decisions alone affect the performance of the company, you are not responsible for brand marketing decisions. The selling prices of the products are fixed. Sales volumes are affected by many factors such as seasonality, actions and promotions of competitors etc. You are asked to develop a 64 week sourcing strategy, and supply chain network plan for each of these products. This strategy/plan should provide an assessment and selection of suppliers, a decision about the network (route and mode of transport) by which your orders are transported from factory to the 4RDCs (See Figure 2), decisions about the consolidation, and cross-dock locations for your goods. The Products You are responsible for 4 products within your company. All products are packed in standard cardboard boxes. The standard unit of transportation is the box. The exception to this is where one leg of the route is by sea, when the unit of transportation is a container of 750 boxes for the whole route. At a consolidation location, it is possible to transport whole containers onward and transport a part container load as boxes by an alternative mode of transport. Table 1: Product characteristics Ladies Summer Blouse Ladies Cashmere Jumper Men’s Trousers Men’s Tie CATEGORY FASHION EXCLUSIVE ESSENTIALS MEN’S ACCESSORIES Wholesale price, €uro 14.00 55.00 13.00 9.00 Garments per box 30 8 12 100 Garments per container 22,500 6,000 9,000 75,000 

DT351 – NITL9020 International Supply Chain Design 4 You should assume that orders placed contain the correct mix of sizes and colours, you are not anticipated to make decisions about size and colour for your report. Garments are sold to shops at a wholesale price, which is stable during your planning period. The shops then make a further mark-up, however, this should not influence your decisions. You should not consider Sales Tax and Value added Tax for your report (even though in real life they exist). Obsolete products are disposed at a write-off of 50% of the supplier cost price. Where transportation is by container, the cost incurred is that of a whole container, regardless if the container is full or not. The minimum order size for all garment types and for all suppliers is 1,000 units. The inventory carrying cost is 20% per annum = 0.385% of value of goods in the pipeline per week. Supply Network Transportation Times to EDC Strasbourg When a production batch is ordered from a supplier, a supplier’s planning lead time will apply before production can commence at the factory (See Responses to Request for Price Quotation provided below). Each order quantity is produced at the factory in one batch. The time taken to complete order quantity is related to the supplier’s actual rate of production per week. Goods are dispatched in the final week of production. Durations include handling times at ports and airport. All times are in whole weeks. The duration of each leg assume that there are no disruptions. If cross-docked at EDC Strasbourg, no additional route time onward to RDC. Table 2: Transportation time (weeks) from factory to EDC Strasbourg Location Road route Rail route Sea route Air route Italy 1 2 – – Romania 1 2 4 – Morocco 1 – 3 1 India – – 5 1 China – – 6 1 At the decoupling point, quantities can be transported by more than one mode of transport. For instance, a proportion of goods at a port can transported onward, if decoupled, by air to meet a deadline.