I would consolidate the PE and EL depots, as the cost of running a warehouse is less than the transportation cost to deliver directly to the EL depot from PE. I would also do a centre of gravity exercise to ensure that all the depots are in the correct area.
I would decrease the level of stock holding from 8 weeks to 4 weeks, and place orders more frequently.
The transportation cost to deliver to the EL customers would be less than the cost to run an entire warehouse and separate fleet. If SGC makes five stops to the EL customers instead of just one stop at the EL depot, the cost for the driver and the fixed cost for the vehicle would not change, the only additional cost will be maintenance and fuel. Potential saving in a warehouse and
I would decrease the level of stock holding from 8 weeks to 4 weeks, and place orders more frequently.
The transportation cost to deliver to the EL customers would be less than the cost to run an entire warehouse and separate fleet. If SGC makes five stops to the EL customers instead of just one stop at the EL depot, the cost for the driver and the fixed cost for the vehicle would not change, the only additional cost will be maintenance and fuel. Potential saving in a warehouse and