Fireside Tire Company

Topics: 3rd millennium, Tire, Logistics Pages: 2 (510 words) Published: July 3, 2011
Fireside Tire Company, a manufacturer of radial tires for sport utility vehicles, sells its products in the automotive aftermarket and distributes them throughout the United States. Fireside has three tire production plants locates in Allentown, Pennsylvania; Toledo, Ohio; and Macomb, Illinois (see map). Normally, Fireside ships tires from its plants to distribution centers, but truckload-size purchases typically are transported directly from plants to customer locations. Al shipments to a region move under truckload rates applying to a minimum weight of 40,000 pounds, or 400 cwt.

Fireside management is concerned about the most economical location for a distribution center to serve the southeastern region, consisting of North Carolina, South Carolina, Georgia, Florida, Mississippi, Alabama, and Southeastern Tennessee. Although an Atlanta distribution canter currently serves this region. Fireside management is concerned that the Atlanta location is not the most logistically sound alternative.To help the logistic department conduct an analysis of this region’s distribution center location using the grid method. Fireside’s transportation department developed the following data based on projections fro Grid Technique Analysis for Fireside Tire Co.PART A

Grid CoordinatesCalculations
Sources/MarketsRate/CWT-mile (a)CWT (b)HorizontalVerticalA*B*HorizontalA*B*Vertical Toledo (s1)2.2150001360116044,880,00038,280,000
Macomb (s2)2.435000980107011,907,00013,000,500
Allentown (s3)2.52110001840115051,004,80031,878,000
Totals:31000107,791,80083,158,500

Chattanooga (m1)72700135065025,515,00012,285,000
Atlanta (m2)73500140060034,300,00014,700,000
Tampa (m3)74300157022047,257,0006,622,000
Birmingham (m4)72800126058024,696,00011,368,000
Miami (m5)7530017409064,554,0003,339,000
Jacksonville (m6)75100160045057,120,00016,065,000
Columbia (m7)72200160065024,640,000...
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