Answer all questions.
1. Imagine a supply chain without warehouses. Explain how such a supply chain can exist. What arethe possible problems of a supply chain without warehouses? [15 points]
2. Provide at least 3 examples to explain how warehouses were useful during COVID-19 pandemic.Explain what would have happened if warehouses did not exist in those examples. [15 points]
3. Summarize the types of warehouses and challenges in each warehouse type. (min. 200 words).[15 points]
4. Compare direct shipments versus shipment through an intermediate aggregator. What are theadvantages and disadvantage of each method. (min. 200 words) [15 points]
5. BLM is a manufacturing company. They have 5 suppliers. Currently, each supplier delivers materialto the BLM manufacturing facility directly. On average, BLM pays $500 for transportation cost foreach shipment they receive. (i.e. 5 deliveries per week costs $2,500 per week).
Table below showsthe number of shipments by each supplier. These shipments are usually in small quantities (lessthan truck load LTL).The new logistics manager of BLM proposed a new method that might save total costs for BLM:consolidating incoming shipments. The plan is to consolidate 10 less than truck load shipments toone truck load at a public warehouse (rented facility) and ship the truck load to the BLMmanufacturing facility. In this method, BML would spend $150 for each LTL shipment from thesupplier to the warehouse, $2000 for a truck load shipment from the warehouse to themanufacturing facility, and $2000 weekly rental cost for the warehouse (including labor).Assume that you are the logistics manager at BLM. Analyze the current and proposed methods.Write a memorandum to the top management discussing the method that should be selected.Describe the advantages and potential problems of each method. Your memorandum should beless than 500 words. [40 points]Supplier A B C D ENumber of LTL shipments per week 5 4 3 6 2Transportation cost from supplier tofactory per LTL shipment$500 $500 $500 $500 $500Transportation cost to from supplierwarehouse per LTL shipment$100 $100 $100 $100 $100Transportation cost fromwarehouse to factory per truck load(=10 LTL)$2000Warehouse rent per week $3000
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