Case Study:
BathKing Industries
Anthony Cainion
St. Thomas University
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Running head: NETWORK ANALYSIS & DESIGN 2
1. Analyze the logistics service and cost constraints imposed on BKI by the chain stores request.
BKI has been imposed on many constraints before and still to this day. They wanted BKI to do
something that was not logistical like create orders separately for each individual store. They
also expected them to have them delivered in less than 5 days of working. The increase in
freight and processing came because of the issue with BKI having to deliver these orders by
this timeline. It’s no different if we order something and want it rush, then the price goes up.
The new processing arrangement caused all of this. BKI had a mountain to climb because they
had to not only deliver in 5 days but also have it in small orders and the truckload cost would
increase.
2. What is your opinion of Joe Rutner’s proposal for establishing a series of company owned
RDCs?
The establishment of the RDCs I do not agree with it and here is why. Rutner has put them in a
unique situation and the strategy that is being imposed will help with waist and cut down on
delivery and order cycle time. But with BKI, the cost is no good because it’s more than the
benefit. They cannot afford to have higher costing facilities, productions, product damage and
operating. BKI production level is not where it needs to be in order to upgrade to higher
costing things. BKI is not making enough products so therefore I do not agree that they need to
move forward in any process at this time.
3. If BKI moves forward with the RDC plan, what facility ownership structure do you
recommend? Why?
Contracting is the best opportunity for BKI if they indeed decide to move forward with the
RDC plan. Having that third party in place in will help to eat up a lot of things that BKI cannot
at this time. BKI can purchase as needed from the contractor therefore saving waist, they are
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Running head: NETWORK ANALYSIS & DESIGN 3
also not in a longterm contract and it allows BKI to focus on the more important task that
needs to be handled.
4. Develop a process map depicting the product and information flows in Rutner’s proposal.
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