Hi-Ho Yo-Yo Harvard Case Solution & Analysis

Hi-Ho Yo-Yo

Case Analysis

The company is considering to open a new sales and distribution office in Cleveland, which will not only increase the sales of the company but will also provide diversified range of distribution centers for customers to deliver their cases, which will increase convenience for customers. Further, it will also benefit the organization to report substantial savings by aligning different distribution centers and to deliver cases from their nearby stations, which will benefit the organization in terms of cost saving and will help the organization to achieve competitive advantage.

hi-ho yo-yo inc case study solution

hi-ho yo-yo inc case study solution

One of the major concerns in the distribution matrix is that there is limited monthly capacity in distribution centers, so the prime motive of the organization will be to choose a specific distribution center for cases that reports a low cost. This can be achieved by comparing the cost incurred by different distribution centers in delivering cases via various customer centers and choose the best possible option available, which will require minimum cost and great flexibility.

Further, there are also some other major concerns as well such as the speed of throughput required and the dependency on other distribution centers because these are basically the core areas for the organization, which will benefit the organization in achieving competitive advantage. However, the organization shall not compromise the delivery of cases with cost savings and the organization shall consider to adopt a mid-point where cases can be delivered to customers on time while satisfying its own objective of maximum cost saving.

Cut and Shoot will incur minimum cost of $2 and $3, if it adopts to deliver cases in DFW and Bentonville customer centers respectively; whereas delivering through other distribution centers will increase the cost of the organization, hence, compromising long terms benefits. Although, the delivery in Las Vegas through Cut and Shoot distribution center is not the best possibility available and the delivery through San Francisco can result in better results but this option has been adopted because San Francisco has limited capacity of 1,000 cases and it can be effectively utilized, only if it is used to deliver in Loss Angeles and Walla Walla customer centers.

Chicago is the distribution center as well as the customer center of the organization, so delivering cases via the same channel will benefit the organization to achieve low cost. Further, delivery in Denver through Chicago is the second possibility available and its delivery through Cut and Shoot is not adopted because C & S has a limited capacity of only 2,000 cases and if the delivery of Denver is chosen through C & S distribution center then, the company will suffer extra cost for other customer centers.

Further, low cost delivery in Louisville can either be achieved through C &S, Chicago and Cleveland distribution centers but Chicago distribution center is chosen because C & S is already running under full capacity and compromising under this section will increase the cost of the company. Further, the delivery in Louisville through Chicago is limited to only 400 cases because it will complete the distribution capacity of Chicago and the remaining 200 cases of Louisville is delivered through Cleveland because it is also one of the possibilities available for the company to achieve low cost in this center.

Distribution in New York and Richmond through Boston distribution center will be the first priority among all distribution centers because it will lead the company to suffer low cost of $2 and $4 respectively; whereas delivering through other centers will require sufficient outflow of resources. Further, delivering in Miami through Boston is the second best possibility; whereas delivery in Bentonville is the third best possibility available and this decision will only be chosen because if other distribution centers are already running under full capacity and any replacement in cases will require the company to suffer extra cost.

Further, the total available capacity in distribution centers is limited to 9,000 cases; whereas the total shipped cases are limited to only 8,600. The excess capacity of 400 cases is restricted in Boston .......................

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