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Supply Chain

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Read the following three articles. The first article features Gulfstream, a General Dynamics company, showing you how they use location to support their domestic and international supply chain links. The second article, provides a good overview of key location factors that need to be considered in defining an optimal spatial supply chain configuration. The third article is focused on the importance of a network based approach to optimizing location:

Thuermer, K. E. (2004). Gulfstream relies on international supply chains to deliver world class aircraft. World Trade, 17(11), 46-49.

Mentzer, John T. (2008 May) 7 Keys to Facility Location, Supply Chain Management Review, New York: Vol 12, Iss. 5 pg. 25, 1 pgs.
While the following article is focused primarily on distribution networks, it also has relevancy to inbound supply networks:

Geary, Steve (2009 Feb/Mar) It's the Network, Not the Node, Area Development Site and Facility Planning, Easton: Vol. 44, Iss. 1, pg. L4

Answer the following questions:

Q1) Does Gulfstream's headquarters and major assembly facilities in Savannah effectively use the locationâ??s site and situation attributes to achieve supply chain efficiency? (Explain)

Q2. How would you describe the relationship between Gulfstream's "just in time" manufacturing and its strategic decision to locate its major facilities in Savannah?

Q3. Does Gulfstream's manufacturing headquarters in Savannah optimize the "7 Keys to Facility Location" defined in the Mentzer article? (Be sure to discuss which of the 7 Keys are most relevant to the Savannah location).

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response is 640 words plus references

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Then in a 2 1/2 page and references paper answer the following questions:

Q1) Does Gulfstream' headquarters and major assembly facilities in Savannah effectively use the locationâ??s site and situation attributes to achieve supply chain efficiency? (Explain)
Yes, Guflstream's headquarters and major assembly facilities in Savannah effectively use the location site and situational attributes to achieve supply chain efficiency. Gulfstream achieves the advantage of location because of its central location on the East Coast. The location gives it supply chain advantages because it provides easy air, rail, and seaport access. The supply chain advantage is achieved because Gulfstream outsourcers many of its parts and components. For instance, the Fokker tails are received in containers that are shipped on barges from Holland to Amsterdam, from which the containers are shipped to Port of Savannah. Gulfstream is able to achieve supply chain efficiency by receiving the parts it has shipped in time for assembly so that Gulfstream is able to achieve the advantages of just in time manufacturing. Gulfstream is also able to use its location to manage suppliers so that the quality of products and costs are managed effectively. In ...

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Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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