Reference no: EM132913340

Supply Chain

Assignment 1: Write a professional email

You are a consultant in a Supply Chain Management consulting firm. One of your clients, Airclean GmbH, a manufacturer of air purifiers, wrote the email below to your company and asked for support in designing their manufacturing network:

Subject: Manufacturing network

Dear Sir or Madam,

As already discussed with Tim Tailor, the Managing Partner of SCM Consulting, we kindly ask for your support in further developing our manufacturing network. We currently face a substantial demand increase for our air purifiers in all European markets, namely Germany, France, Poland, Italy, and the Netherlands. As discussed with Tim Tailor, we created a forecast for the next year, and we know that we need to build new production facilities to fulfill the future demand. Based on a detailed analysis, our management team identified four potential sites for new plants: Düsseldorf (Germany), Paris (France), Milano (Italy), Stettin (Poland). According to the information provided by our engineering department, we can built either smaller plants (with a max. capacity of 150 000 units) or bigger plants (with a max. capacity of 300 000 units). Additional data regarding annual fixed costs for the facilities and production and transportation costs per unit can be found attached to this email.

We kindly ask you to analyze the given data and provide detailed answers and explanations to the following questions:
• Where should we build factories, and which markets should each factory serve (incl. the volumes)?
• What size should the factories have?
• What is the expected annual cost of this network? How much excess capacity will we have with this solution? Please provide details on the amount and allocation of excess capacities.
• What are potential negative effects on the customer response time and service levels? (Remark: we only deliver directly to end customers.)

Please send me your results via email by the 10th of June. I will need your information to prepare for the board meeting on the 12th of June.

Sincerely, Diane Schulz

Head of Supply Chain Management Airclean GmbH

Formal requirements:

Work on the questions from Diane Schulz and prepare a formal email with 400 to 800 words, which answers all her questions.
To solve the problem, you may use MS Excel or Open Office Calc, a free Office Application, which also provides a solver similar to the one presented in the course. (Downloadable under https://www.openoffice.org/?redirect=soft) .

Please consider the following aspects, when preparing your answer:
• You are asked to write a professional, formal email to your client addressing all above-mentioned points and adhering to email etiquette. (e.g. subject line, addressing the receiver, introduction, body, closing, and signature.)
• You can also upload the solution spreadsheet (in a separate upload section in Moodle).

Attachment:- Professional email.rar

Attachment:- task new.rar