Analysis 2 Hallmark Cards

MKT 255 – Fall 2019 - Analysis 2 –Hallmark (USA)

Hallmark Cards, The Greeting Card Developer, created a new line of premium greeting cards and has been

shipping 10 and 20 pound boxes of seasonal cards to US retail stores weekly. Fast delivery is critical

because many of the card designs are holiday themed and late arrivals are not useful due to the seasonal

nature of the product (e.g. Christmas cards on December 26 th).

All cards are shipped from Kansas City, Missouri (postal code 64102) to all stores via UPS ground service,

commercial rate (SEE RATE TABLE BELOW). Hallmark absorbs all transportation charges. The geographic

demand pattern for these cards is as follows: (SEE DEMAND TABLE IN DATA FILE).

Hallmark selected Kansas City, MO as the shipping point for two reasons: (1) it is the location of the printer;

and (2) it is centrally located in the United States. Recent pressure to cut costs and improve service has

prompted logistics management to consider multiple US shipment sites.

Access the UPS Website at www.UPS.com and find the US Transit Time Maps.

https://www.ups.com/maps?loc=en_US. Enter the Kansas City postal code to determine the transit times.

Transit Time Rate USD$

1 day delivery $15.00 USD

2 day delivery $16.50 USD

3 day delivery $19.00 USD

4 day delivery $21.00 USD

5 day delivery $22.00 USD

+6 day delivery $23.00 USD

*Assume no more than 1 delivery time applies to each state. Majority rules… if more than ½ of a state is a

particular delivery time (color), use it for the entire county (in case of a tie, check where the largest city is located

and use the same delivery time). Objective is to find the lowest cost solution. Each team will submit 1 excel file.

Access the accompanying excel file for the data. Distribution Center = DC.

Question 1 tab: find the zone (enter transit days), rate, and total cost of the demanded volume. Provide images

of the UPS map (imbed or copy/paste it in the excel worksheet) to validate your transit time.

Question 2 tab: Pick 3 DC locations and which distribution center would service each city. Calculate rates from a

DC to each city using UPS maps and the table given above. Find the solution that provides the lowest total cost

for Hallmark. Show solution map (square for DC – Circle for destination w/lines)

Question 3 tab: Evaluate the data on this tab and create suggestions for Hallmark based on your findings. Please

perform your analysis of the data on this tab. In the Excel file enter recommendations or prepare a separate

Word document.