MoonChem is a manufacturer of specialty chemicals used in a variety of industrial applications. The vice-president of MoonChem would like to conduct a study on the policy of providing consignment inventory to its customers in the Midwest region. The objective of this study is to analyze different options for distribution available in the Peoria region to decide on the optimal distribution policy. Results from this study would allow the company to introduce the consignment inventory strategy nationally. The current strategy of MoonChem is to send full truckloads to each customer to replenish their consignment inventory. The current annual cost of MoonChem’s strategy of sending full truckloads to each customer in the Peoria region to replenish consignment inventory is $156, 383.33. Alternatives options were tested to identify what is the best alternative for MoonChem. The first option is that MoonChem delivers its product to his customers separately. The second option is that......

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Title: Scm
Approximate Word Count: 1737
Approximate Pages: 7 (250 words per double-spaced page)

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