| Course | MT236 Introduction to Supply Chain Management |
|---|---|
| Unit | Unit 7 |
| Paper type | Distribution network memo |
| Length | About 770 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Business Administration |
| Updated | October 2026 |
Free sample paper for MT236 Unit 7
Not Yet, and the Volume at Which That Changes: A Unit 7 Distribution Network Memo on an Atlanta Warehouse
[Student Name]
Purdue University Global
MT236: Introduction to Supply Chain Management
Unit 7 Distribution Network Memo
[Instructor Name]
[Date]
Alamo Ridge Pepper Co., the third-party warehouse and every rate and volume are composite and illustrative; bracketed figures stand where quotes would supply the numbers; the sources cited are real.
Memo
To: Owner, Alamo Ridge Pepper Co. From: Supply chain analyst Date: [date] Subject: Whether to add a Southeast warehouse
Recommendation
Keep a single warehouse in San Antonio for now. Revisit the decision when online orders from the Southeast pass about 4,500 a year, which at current growth could happen in about eighteen months.
The Question
Alamo Ridge now ships two kinds of volume to the Southeast. The new grocery chain's distribution center near Charlotte receives pallet shipments, planned in Unit 6. Online orders from shoppers in Georgia, the Carolinas, Florida and nearby states, about [3,600] a year, go by parcel from San Antonio at an average of about [$11.40] each because of the distance. A third-party logistics provider near Atlanta has offered to store a few pallets of the top flavors and ship online orders from there.
The Costs Compared
Serving everything from Texas costs about [$54,480] a year: [$7,680] in freight to the Charlotte distribution center, [$41,040] in parcel postage for 3,600 online orders and [$5,760] in Alamo Ridge's own handling of those orders at about [$1.60] each.
Adding the Atlanta site changes the online costs. Parcel postage from Atlanta falls to about [$7.90] an order because the packages travel two or three zones instead of six or seven, saving [$3.50] each. But the provider charges about [$3.28] an order to pick and pack, against Alamo Ridge's own [$1.60]. The provider also charges a monthly account and storage fee of about [$500], or [$6,000] a year, and moving stock from San Antonio to Atlanta adds about [$2,200] a year in freight. The Charlotte freight stays the same.
The two-warehouse network costs about [$56,130] a year: [$7,680] to Charlotte, about [$40,250] for online postage and picking, and [$8,200] in fixed fees and replenishment. That is about [$1,650] more than serving everything from Texas.
Where the Answer Flips
Each online order shipped from Atlanta instead of Texas saves about [$1.82]: [$13.00] in Texas postage and handling against [$11.18] in Atlanta postage and picking. The Atlanta site adds about [$8,200] a year in fixed costs. Dividing the fixed cost by the per-order saving gives a break-even of about 4,500 Southeast orders a year. Below that, Texas is cheaper; above it, Atlanta is.
Chopra and Meindl (2019) explain that adding facilities lowers outbound transportation cost and response time but raises facility and inventory costs, so total cost first falls and then rises as facilities are added. Alamo Ridge sits just before the point where a second site starts to pay.
At today's order count the Atlanta warehouse costs more than it saves; at 4,500 orders it pays for itself.
Sensitivity
Two inputs move the break-even most. If the Atlanta provider's picking fee were [$2.80] instead of [$3.28], the saving per order would rise to about [$2.30] and the break-even would fall to about 3,600 orders, today's volume. If carriers raise long-zone parcel rates more than short-zone rates, as they did last year, the Texas cost per order would rise and the break-even would fall as well. Both are worth asking about before the next review.
What the Numbers Leave Out
Two factors could move the answer earlier. Delivery time from Atlanta would be one to two days instead of four to five, which might raise online sales in the Southeast. And a few pallets in Atlanta could serve as emergency stock for the Charlotte chain if a truck is delayed. Against that, a second site adds inventory, about [$6,000] in finished goods, and another place where stock can be miscounted or go out of date. Simchi-Levi et al. (2014) argue that firms should weigh how a network performs under disruption, not only its normal cost, and a second site would also protect Southeast customers if the San Antonio warehouse were shut for a week.
Next Steps
Track Southeast online orders monthly. If they reach a run rate of about 4,000 a year, request a firm quote from the Atlanta provider and plan a trial for the following holiday season. Ballou (2004) treats network design as a decision to revisit whenever volume or service needs shift, and setting the trigger now means the decision will not wait for the next annual review.
References
Ballou, R. H. (2004). Business logistics/supply chain management (5th ed.). Pearson Prentice Hall.
Chopra, S., & Meindl, P. (2019). Supply chain management: Strategy, planning, and operation (7th ed.). Pearson.
Simchi-Levi, D., Schmidt, W., & Wei, Y. (2014). From superstorms to factory fires: Managing unpredictable supply-chain disruptions. Harvard Business Review, 92(1/2), 96-101.
Reading the MT 236 Unit 7 instructions
Unit 7 usually asks for a short memo recommending whether a company should change its distribution network, such as adding or closing a warehouse. Put the answer at the very top, where a busy owner will see it, and the cost comparison right under it. Compare two or three realistic networks rather than every possibility. Break each network's cost into freight to customers, per-order handling and fixed costs, so the reader can see which line drives the result. A break-even volume at which the answer changes is often the most useful number in the memo. Mention benefits and risks the costs leave out, such as faster delivery, extra inventory or protection against a disruption. Close with a trigger for revisiting the decision. A simple map helps if locations are unfamiliar. Expect about three pages in memo format, citing network design sources in APA 7.
How the MT 236 Unit 7 example is put together
Under the To and From lines, the owner reads the answer and its 4,500-order trigger before anything else. A short section explains the two kinds of Southeast volume and the Atlanta provider's offer. The cost comparison breaks the Texas network into Charlotte freight, parcel postage and handling, and the Atlanta network into the same freight, lower postage, higher picking fees, an account fee and replenishment, and a margin note explains why the breakdown matters. The break-even section divides fixed cost by saving per order, and Chopra and Meindl's facility cost curve places the company just before the turning point, which the highlighted line states. A sensitivity section shows how a lower picking fee or long-zone parcel increases would move the break-even, with a second note. Benefits and risks follow, citing Simchi-Levi and colleagues on disruption, and Ballou supports setting a review trigger.
MT236 Unit 7 rubric: what earns full points
Network memos are typically graded on a clear recommendation, a transparent cost comparison and a sensible trigger for change. Leading with the answer suits the memo format and earns early credit. Costs should be broken into lines that show what changes between networks; a single total for each option hides the reasoning. A break-even calculation demonstrates analytical thinking and gives the owner a number to watch. Sensitivity to the most uncertain inputs shows how firm the recommendation is. Benefits and risks outside the cost comparison should be named, not ignored. A review trigger tied to a measurable volume shows practical judgment. The Chopra and Meindl text, the Simchi-Levi article and Ballou should be cited.
MT236 Unit 7 help: mistakes that cost points
Network memos most often lose points by comparing total costs without showing what drives them. Another common problem is ignoring the extra inventory and fixed fees that a second site brings. Some memos recommend a new warehouse because delivery would be faster, without asking whether customers will pay for it. Others stop at today's volume and never say when the answer would change. Sensitivity checks are often missing. Watch parcel rates, which rise with distance zones and change yearly. If your company has no current data, carrier zone charts and published third-party warehouse fees can support estimates. Tell us the volumes and locations involved, and a writer can help break the costs into lines and find the break-even.
Get an MT236 Unit 7 example written to your instructions
Outline the network question your Unit 7 case poses, with current sites, customer regions and volumes, and include the prompt and its rubric. A first custom memo is free and back within 24-48h, both options costed from those volumes and the recommendation tied to a trigger. Rates missing from the case are filled with stated estimates that are easy to replace. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
More MT236 papers and BS in Business Administration samples
- MT236 Unit 1: Discussion Board Post
- MT236 Unit 2: Supply Chain Map
- MT236 Unit 3: Supplier Evaluation
- MT236 Unit 4: Demand Forecast Exercise
- MT236 Unit 5: Inventory Analysis
- MT236 Unit 6: Transportation Comparison
- MT236 Unit 8: Process Improvement Proposal
- MT236 Unit 9: Seminar Reflection
- MT236 Unit 10: Supply Chain Report
- MT221 Unit 7: Escalation Procedure
- MT220 Unit 7: Global Operations Memo
- MT219 Unit 7: Promotion Critique
- MT217 Unit 7: Stock Valuation Exercise
MT236 Unit 7 questions, answered
How many options should a network memo compare?
Two or three realistic ones is typical. Comparing every possible configuration spreads the analysis thin, while comparing a favored option against nothing proves little. The example compares the current single site with one specific alternative because the firm's volume cannot justify more, and it says so in a sentence so the reader knows the narrowing was deliberate.
What is the square root law for inventory?
A rule of thumb stating that total safety stock rises roughly with the square root of the number of stocking locations, assuming demand is split evenly and independently. Moving from one site to two raises it by about 40 percent. It is an approximation, but it explains why adding warehouses costs more inventory, not merely more rent.
Does the memo need a map?
A simple one helps when locations and customer regions are unfamiliar to the reader, and some sections expect it. Keep it small and labeled: current site, proposed site and the main customer areas. The cost table does the persuading and the map supports it. A memo relying on the map alone, with no figures, tends to lose most of the analysis credit.
Where can I find a free MT236 Unit 7 sample paper?
The full MT236 Unit 7 distribution network memo is on this page. It compares a single Texas warehouse with an added Atlanta site for a hot sauce maker, finds a break-even near 4,500 orders and includes margin notes.
What would make the Atlanta warehouse worth opening sooner?
A lower picking fee or higher long-distance parcel rates. At a $2.80 picking fee, the break-even falls to about 3,600 orders, roughly today's volume, so the owner should negotiate that fee first.