Phase 1: From Suppliers to Distribution Centers
For Phase 1 of the distribution network, we needed to find the appropriate allocation and
costs to supply US distribution centers from outside countries. Four of the distributions centers in
the US, which include Washington, Nevada, Pennsylvania, and South Carolina, are current
Starbucks distribution center locations. When analyzing the IBIS US map (Appendix N) that
highlights heavy areas of coffee demand, we observed that a reasonable amount comes from
Texas. Assuming that distribution of coffee demand in the US as shown in figure only relates to
Starbucks coffee, we found the absence of a distribution center in the south alarming and hence
decided to add a distribution center in Texas to the existing Starbucks distribution network.
Once the distribution locations were determined, supply, demand, and shipping costs needed to
be found