Analyzing Logistics Costs

Assignment Overview

One of the challenges in managing supply chains comes in integrating operations when firms merge. In this assignment, you will analyze logistics cost in such a situation. Further, you will consider the challenges in merging systems.

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Assignment Directions

To complete this assignment:

  • Review Case 6, “Western Pharmaceuticals (A),” and Case 7, “Western Pharmaceuticals (B)” on pages 453–457 of your Supply Chain Logistics Management text.
  • Write a 3–4-page paper with supporting appendices, answering questions 1, 2, and 3 on page 457. In answering these questions, utilize Excel data referenced in the case. In addition, assume that Western Pharmaceuticals and Atlantic Medical use two different ERP systems. Also, discuss management challenges in the systems area in merging the two firms, along with opportunities for innovation and growth. For example, how might management use this merger to upgrade technology and add new competitive capabilities? In your paper, be certain to: 
    • Analyze the costs of a logistics system using cost data.
    • Evaluate the challenges and opportunities that come when merging systems from two organizations.

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