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Williams & Williams: Plant Location Dilemma

CASELET, OPERATIONS AND PROJECT MANAGEMENT
ET Cases, 1 page

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Williams & Williams: Plant Location Dilemma

 

Williams & Williams, one of the traditional home furniture-makers in the US, was established in 2010 by Williams Cooper (Williams) in Atlanta. The company initially sold furniture produced by local manufacturers. The company had two distribution centres at New York and Los Angeles. But over the years it started designing its own furniture from Atlanta. The company’s central location added to its advantage as it could offer better service and delivery to its clients when compared to other stores. The intricate carvings, the straight elegant lines, the finish and the furnishing had made Williams & Williams’ furniture a rage in the US. Williams & Williams’ products included chairs, tables, sofa sets, dining tables, dressing tables and wall mountings. Exhibit I provides pertinent production and distribution costs as well as plant  apacities...........................

Teaching Note Preview

Williams & Williams: Plant Location Dilemma

 

Synopsis

This caselet is meant for discussing the concept of Transportation method in Operations Management. The caselet discusses about a furniture manufacturer, Williams & Williams located in the US. Williams & Williams has its plants at two locations and distribution centres at two locations. As the company found that with only two plants it was not meeting the demand (capacity problem), it started scouting location for establishing a new plant. The caselet revolves around the company selecting the new plant location with an aim to minimize the total transportation cost by using Transportation model.

Expected Learning Outcomes

  • • Basics of Transportation Models
  • • Different ways of developing initial solution to a Transportation problem – Northwest-corner and Least Cost Method
  • • Calculate improvement index using Stepping Stone Method and solve a Transportation problem

 

Assignment Questions

  • I. Which of the new location, in combination with the existing plants and distribution centers, will yield a lower cost for Williams & Williams?
  • II. Compute the total cost using transportion model.

 

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Product code: OM-2-0012, OM-2-0012A

Abstract


This caselet is meant for discussing the concept of Transportation method in Operations Management. The caselet discusses about a furniture manufacturer, Williams & Williams located in the US. Williams & Williams has its plants at two locations and distribution centres at two locations. As the company found that with only two plants it was not meeting the demand (capacity problem), it started scouting location for establishing a new plant. The caselet revolves around the company selecting the new plant location with an aim to minimize the total transportation cost by using Transportation model.




Pedagogical Objectives


  • To understand the basics of Transportation Models

  • To explain different ways of developing initial solution to a Transportation problem – Northwest-corner and Least Cost Method

  • To calculate improvement index using Stepping Stone Method and solve a Transportation problem




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 - Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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