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OPS MGMT - Case 12.2 Fireside Tire Company




Question;cASE 1"2.2.Fireside Tire Company, a manufacturer of radiai tires for sport utility vehicles, sells itsproducts in the automotive aftermarket and distributes them throughout the UnitedStates. Fireside has three tire production plants located in Allentown, Pennsylvania,Toledo, Ohio, and Macomb, Illinois (see map). Normaiiy, Fireside ships tires from itspiants to distribution centers, but truckload-size purchases tlpically are transporteddirectly from plants to customer locations. AII shipments to a region move undertruck-load rates applying to a minimum weight of 40,000 pounds, or 400 cwt.CASE QUESTlONS. Based on the available information, is Atlanta the best location for a distribution centerto serve the southeastern region? If not, what would you recommend?2. The Fireside transportation department projects a 25 percent rate increase in 2013from all of its transportation providers. How will this affect the southeastern location? 3. Marketing anticipates that the Raleigh/Durham market will grow by 3,000 cwt in 2014,and thatFireside will serve the growth from Allentown. How will this affect Atlanta asa location?


Paper#46350 | Written in 18-Jul-2015

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