You are a Supply Chain Analyst for a well-respected, designer leather goods company. The Chief Supply Chain Officer has tasked you to develop an end-to-end supply chain concept for the sourcing, manufacturing, and omni-channel distribution of a new high-end lady’s handbag to millions of customers in the United States and Europe.
Your company has a strong stance on sustainability and fair-labor standards and is willing to pay premiums to ensure its actions are in alignment with this position. Additionally, the company is seeking to develop strategic relationships with 3PL providers to assist in the management of inventories and distribution while reducing internal overhead expenses and personnel.
The specific inputs of production for each handbag are: three yards of cowhide leather, 2 yards’ cotton for the lining, one gold plated large zipper for the exterior, one small zipper on the interior, and one gold plated strap buckle. The handbag is available in black and brown leather. Marketing predicts the following sales rates for the next three years, assume a 50/50 split between black and brown colored bags:
NE United States: 300,000 units, 450,000 units, 150,000 units
SE United States: 200,000 units, 350,000 units, 175,000 units
NW United States: 300,000 units, 450,000 units, 150,000 units
SW United States: 350,000 units, 500,000 units, 150,000 units
France: 350,000 units, 500,000 units, 150,000 units
Germany: 300,000 units, 450,000 units, 150,000 units
United Kingdom: 200,000 units, 350,000 units, 175,000 units