Kellogg’s Corn flake Case Study And suppliers & Markets Report Writing - Marketing Assignment Help

Assignment Task

Kellogg’s

The Kellogg’s Cornflake Company began in 1906 with the Kellogg brothers who originally ran a sanatorium in Michigan, USA. They experimented with different ways to cook cereals without losing the goodness. Their philosophy was ‘improved diet leads to improved health’. Between 1938 and the present day Kellogg’s opened manufacturing plants in the UK, Canada, Australia, Latin America and Asia. Kellogg’s is now the world’s leading breakfast cereal manufacturer. Its products are manufactured in 3 countries; Belgium (location 50,4) with total capacity 25000 tons and distribution costs per unit 6$; China (location 39, 116) with total capacity 28000 tons and distribution costs per unit 9$; and France (location 48, 2) with total capacity 37000 tons and distribution costs per unit 5$, while sold in more than 3 countries; Greece (location 37, 23) with total demand 15000 tons and distribution costs per unit 9$; Ireland (location 53, 6) with total demand 18000 tons and distribution costs per unit 4$; and Luxembourg (location 49, 6) with total demand 28000 tons and distribution costs per unit 9$. It produces a wide range of cereal products, including the well-known brands of Kellogg’s Corn Flakes, Rice Krispies, Special K, Fruit n’ Fibre, as well as the Nutri-Grain cereal bars.

Kellogg’s business strategy is clear and focused:

• to grow the cereal business – there are now 40 different cereals

• to expand the snack business – by diversifying into convenience foods

• to engage in specific growth opportunities.

Questions

1. In order to minimize total distribution costs, design a facility location model to determine the right location of establishing a distribution center.

2. Design a distribution network and generate an answer report to determine the flow of goods between suppliers and markets.

3. Is it feasible to shut down one supply markets to minimize total costs if you know that the fixed costs are as follows: Belgium (18000 $), China (17000 $), and France (19000$)? Generate an answer report to shows your results.

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