Adam NadeemSCMT309 – Assignment #04Questions 1, 3, & 4 for Manly Terminal LLC11.6.14G16QUESTIONS:1) Does MAP understand its transportation needs in a changing environment? What role does transportation play in MAP’S supply chain? How is the role different or the same as other companies (multi-nationals, retail, manufacturing)a. ANSWER => Stanley, the founder of MAP suggested adapting to changing business conditions including favorable rate changes associated w/ deregulation of transportation. Transportation congestion is a major issue at hand, but renting warehouse space and increasing inventories must be a last resort, when the environment is changing rapidly. Transportation is the back-bone of the Midwest Ag Processing-Plant (MAP). It is the same as a lot of other companies seeing how transportation is a critical component in any industry to benefit the consumer who is purchasing the product.3) Many factors influence location decisions. If MAP were to relocate a facility today, what factors would seem most important? Do MAP’S past location decisions limit or enable their future opportunities? Would your answer change if MAP was a large multi-national corporation?a. ANSWER => Factors influence location decisions, yes, but location is also based on allocation of resources. If MAP were to relocate a facilityI would do so in a vicinity that it is located closer to the corn-belt itself, due to the simple fact that it is a Corn and Soybean Processor based in SW Iowa and the corn-belt is fairly closer to North-Central Iowa, being pretty close to the corn-belt would be extremely efficient and time-consuming for transportation of goods. The previous location decisions of MAP enable their future opportunities to expand because of the nature of the business. If MAP was a large multi-national corporation then locations would vary I would place headquarters in the big city and place the processing plant along the corn-belt, and operate the business from afar, also it would change yesbecause as a corporation gets larger in size it becomes wider in variety of products, this being the case other crops or product could become the focus of things along with MAP in Iowa. 4) Manly Terminal, LLC successfully enables modal shifts from truck to rail transportation, and specifically to unit-train pricing, for ethanol shippers producing single carload shipment sizes. What prevents MAP from realizing these same rate advantages? Can these challenges be overcome? How?a. ANSWER => Manly Terminal, LLC shifts modes from truck to rail and itreduces ethanol and DDGS transportation costs as much as 50%. Also, MT,LLC allows shippers to utilize lower-cost unit train shipments, since the deregulation of transportation, the industry has encouraged trainload consignments of 80-100 cars, called unit trains; Unit trainquantities allow the industry to be more productive, reduce stops and car switches, and improve reliability. On a per-ton basis, cost savings for a unit train shipment are at least 25% less than the cost of shipping a single railcar. At MT,LLC ethanol plants collectively fill unit trains, reaping the benefits of reduced transportation costs, while keeping production inventories low. MAP does not have the ideal location that MT,LLC has being right next to the railway station and being able to enable a direct tariff on rail transportation benefits MT, LLC over MAP who’s main source of transportation is by
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