Part -1:

1. In the Kimberly-Clark discussion, the text notes that "benefits of the consolidated design included significant scale economies, reduced inventory, reduced transit times, and reduced transportation expense." Describe the rationale regarding why these ben¬efits could be achieved.

2. Describe and rationalize the distribution network that would result for products with the following characteristics:
a. Electronic products with high value that arc relatively small and light;
b. Canned food products with low value and relatively high weight;
c. Medical products for which the hospitals and clinics expect the supplier to provide fors-hour delivery service; and
d. Aircraft spare parts that are high value, relatively small, and critical to the ability of the plane to fly.

3. Describe and rationalize the impact of increasing fuel prices on logistics network design.

4. As firms increase product variation because of differentiated packaging or labeling, product line complexity increases. Discuss and rationalize the trade-offs between increased product complexity, process postponement, and logistics network design

Part -2:

1. Describe in your words the meaning of spatial/temporal integration in logistical system integration.

2. What justification of logic can be presented to support the placement of a warehouse in a logistical system?

3. Why do transportation costs initially decrease as the number of warehouses in a system increases? Why do transportation costs eventually increase as the number of warehouses increase? Why do inventory costs increase as the number of warehouses in a system increases?

4. What is meant by the threshold service level of a least-cost system?

5. Why does customer service not increase proportionately to increases in total cost when a logistical system is being designed?

6. Discuss the differences between improving customer service through faster and more consistent transportation, higher inventory levels, and/or expanded numbers of warehouses.