• Develop a structured plan paper analyzing logistics intersections and bottleneck management for a two-store coffee chain.

• Complete a 1500-word paper plan reviewing supply chain scenarios and recommending a decentralized design for Wild Dog Coffee.

Supply Chain Management Plan for Wild Dog Coffee Company

Wild Dog Coffee Company is preparing to expand from one store to two. While the menu will remain consistent in its core espresso offerings, the addition of a second location raises complex operational questions. A strong supply chain plan will decide whether the expansion increases efficiency or magnifies inefficiencies. The company’s success depends on its ability to design a supply chain that balances reliability, cost, and service quality.

The analysis below explores two supply chain designs, examines logistics intersections, identifies bottlenecks, and recommends an optimal approach for Wild Dog Coffee Company. The focus is on building a system that reduces risk, increases responsiveness, and preserves consistency across both stores.

Supply Chain Design Scenarios

Scenario I: Centralized Supply Chain

Under a centralized model, procurement and inventory management occur at a single hub that serves both stores. All espresso beans, milk, flavorings, paper goods, and maintenance supplies flow into a central facility before being distributed.

Benefits of this design include tighter control of inventory, fewer supplier relationships to manage, and potential cost savings from bulk ordering. Centralized distribution also supports stronger bargaining power with suppliers and lowers per-unit transportation costs when ordering high-volume items.

Challenges arise in the reliance on a single hub. Any failure in the central node, such as a late supplier delivery or equipment breakdown, affects both stores. The additional step of transporting supplies from the hub to each store adds complexity and requires reliable logistics planning.

Scenario II: Decentralized Supply Chain

In a decentralized design, each store manages its own supplier orders and inventory. Deliveries go directly to each location without consolidation. This creates independence between stores, reducing the risk that disruptions in one location will spill over to the other.

The decentralized model offers flexibility. Each store can adjust orders based on local demand fluctuations, such as higher morning traffic near office districts or higher evening demand near residential areas.

The primary drawback is reduced efficiency. Separate orders often mean higher per-unit costs, lower bargaining leverage, and more administrative burden in managing supplier relationships. Variability in store practices may also lead to inconsistent customer experiences.

Supply Chain Flow Charts

For both designs, the flow of goods starts with suppliers of beans, milk, flavorings, and paper products. Espresso machines require outsourced maintenance services.

• In the centralized model, all items arrive at a hub. From there, the company redistributes to both stores based on weekly demand forecasts.

• In the decentralized model, suppliers deliver directly to each store according to orders placed separately by store managers.

These flows highlight where logistics decisions play different roles. In the centralized case, logistics focuses on redistribution from the hub. In the decentralized case, logistics centers on managing direct deliveries.

Logistics Intersections

Logistics decisions intersect with both designs at three points: inbound deliveries, storage, and outbound flow to customers.

• Inbound deliveries determine how quickly stores receive espresso beans and other supplies. With a seven-day lead time for beans, poor ordering discipline leads directly to stockouts and forced closures.

• Storage capacity limits how much safety stock each location can hold. Refrigeration for milk and limited dry storage constrain inventory buffers.

• Outbound flow to customers depends on barista efficiency and equipment uptime. A breakdown in espresso machines immediately halts beverage sales.

In the centralized model, logistics plays a larger role in coordinating internal transfers between hub and stores. In the decentralized model, logistics primarily manages timing and reliability of direct supplier deliveries.

Bottlenecks and Solutions

Espresso Beans Lead Time

With a fixed seven-day lead time for beans, demand forecasting becomes critical. A missed forecast forces closure. Both designs must address this bottleneck by holding safety stock. Advanced ordering tools can align purchases with sales patterns, reducing risk of shortages.

Machine Capacity

Each machine requires 1.5 minutes per beverage. At peak hours, the single espresso maker becomes the throughput limiter. Neither supply chain design addresses this bottleneck directly. The solution is to consider installing a second machine in high-traffic locations or cross-training staff to maximize speed during peak hours.

Central Hub Dependency

In the centralized model, delays at the hub bottleneck the entire system. This can be mitigated with dual-sourcing strategies and backup delivery agreements.

Store Autonomy in Decentralized Model

In the decentralized model, inconsistent ordering practices can lead to wasted inventory. Training store managers in demand planning and setting corporate guidelines on reorder points reduces this risk.

Value Creation from Supply Chains and Logistics

A well-designed supply chain creates value by increasing service reliability and reducing costs. For Wild Dog Coffee, consistent availability of espresso drinks is non-negotiable. A single stockout can mean lost revenue and damaged brand trust. By aligning supply chain practices with logistics, the company ensures smooth daily operations while preparing for growth.

Efficient supply chains also improve financial performance. Studies show that firms with resilient supply chains outperform peers in revenue growth during disruptions (Ivanov and Dolgui, 2020). For a small business like Wild Dog Coffee, resilience means stable supplier relationships, transparent logistics, and clear ordering policies.

Recommended Supply Chain Design

The decentralized supply chain is recommended for Wild Dog Coffee. While centralized distribution offers cost savings, it introduces systemic risk for a company with only two stores. Decentralization provides independence and resilience during expansion. Each store gains autonomy to adapt to local demand while following company standards on ordering and forecasting.

The decentralized model is more scalable. As the company grows beyond two locations, it can introduce regional hubs when volume justifies the complexity. At the current stage, flexibility outweighs cost savings.

Assumptions in the Analysis

• Storage space at each store is limited but sufficient for one week of safety stock.

• Demand patterns between the two stores will vary based on location demographics.

• Supplier reliability is consistent, with a seven-day lead time for beans and shorter lead times for milk and paper goods.

• Labor availability allows staff to support inventory management tasks alongside barista duties.

Conclusion

Wild Dog Coffee’s expansion depends on more than menu design and customer service. The supply chain is the backbone of growth. A decentralized design reduces risk, supports local flexibility, and positions the company to grow sustainably. With proper training in demand forecasting, safety stock management, and logistics coordination, the company will build a system that supports reliable operations and consistent customer experience across both stores.

References

Ivanov, D. and Dolgui, A. (2020). Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. International Journal of Production Research, 58(10), pp.2904-2915. https://doi.org/10.1080/00207543.2020.1750727

Kumar, S. and Suresh, N. (2021). Operations Management and Supply Chain: Strategies and Practices. Springer. https://doi.org/10.1007/978-981-15-9864-3

Christopher, M. (2022). Logistics and Supply Chain Management. 6th ed. Pearson Education.

Rajesh, R. (2021). Flexible supply chain design under demand uncertainty: A robust optimization approach. Computers & Industrial Engineering, 159, 107491. https://doi.org/10.1016/j.cie.2021.107491

Esper, T. and Badar, M. (2019). Supply chain integration and logistics performance. Journal of Business Logistics, 40(2), pp.116-130. https://doi.org/10.1111/jbl.12201

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Supply Chain Management Plan

Number of sources: 5
Paper instructions:
Prepare 10-12 PowerPoint slides to present a supply chain management plan, including your analysis and recommendations for a supply chain design and logistics, for a provided scenario or business of your choice.

Introduction
This portfolio work project, a presentation of a supply chain management plan, will help you understand how supply chains and logistics create value for a company.

Scenario

Option 1
Wild Dog Coffee Company, a locally owned company with a single coffee shop location, serves a wide selection of espresso products, small breakfast and lunch menu items, and a limited evening menu. The company is planning to expand the business by adding an additional location. While different menu items may be tested at the new location, the espresso beverage preparation process will remain exactly the same. You and your business partners need to make a decision about the supply chain before the move. The following information may help support your analysis for Wild Dog Coffee Company:

You have one espresso maker that brews the espresso and froths the milk at each location.
Each espresso beverage requires 1.5 minutes of the barista’s time.
Each espresso beverage requires some combination of espresso beans, milk, and flavoring.
Each espresso beverage is served in a paper cup with a lid and sleeve.
Monthly cleaning and maintenance of the espresso maker is outsourced to a services company.

You stock one type of espresso bean. If you run out of inventory, you have to close the business until the next shipment of beans arrives.
Espresso beans are received seven (7) days after placing the order.

Your Role
Option 1
You are an owner of Wild Dog Coffee Company. You and your business partners are preparing for the opening of your second location. You need to analyze and make recommendations for supply chain management for the two locations.

• Evaluate supply chain options for Wild Dog Coffee Company and explain logistics roles, bottlenecks, and resilience strategies in a PPT presentation paper.

• Create a 10 slides PowerPoint presentation analysis of centralized and decentralized supply chains for a coffee company expansion with clear recommendations.

Requirements
Create a PowerPoint presentation of your supply chain management plan, which you will present to your business partners. Include the following:

Analyze supply chain designs.
Your analysis should detail two different supply chain scenarios for either Wild Dog Coffee Company or your selected business.
Use a flow chart to indicate all inputs and outputs for each supply chain and to clearly indicate areas in the supply chain designs that are different.
Analyze the points at which the supply chains intersect with logistics. What role does logistics play in each supply chain design?
Assess bottlenecks in the supply chain designs. How would you overcome each bottleneck in the two supply chain designs?
Analyze how supply chains and logistics create value for the selected business. Why is it important for Wild Dog Coffee Company or your selected business to focus on supply chains?
Recommend a supply chain design for the selected business.

Include your rationale for the most appropriate supply chain for Wild Dog Coffee Company or your selected business.

Be sure to include any assumptions you had to make to develop the supply chain designs that support your recommendations.

Deliverable Format
Requirements:
Presentation is 10-12 slides (in addition to title, reference, and appendix slides).
Select a PowerPoint slide template appropriate for a professional presentation. Include the content of the slides as well as the supporting narrative. Do not overbuild your slides; information that supports what you will be saying should appear at the lower portion of each slide as notes.

Related company standards:
The PowerPoint is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines (available in the MBA Program Resources).
Use 2-3 scholarly or academic sources, where applicable, one of which must come from the Wall Street Journal, Forbes, or MIT Sloan Management Review.
Use APA formatting for citations and references.

Evaluation
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:

Competency 1: Analyze how operations management theories and models effect the development and delivery of products or services to the marketplace.
Analyze how supply chains and logistics create value for the selected business.
Competency 2: Use logistics and supply chain management tools to manage the distribution of products and services.
Analyze the points at which the supply chains intersect with logistics.
Assess bottlenecks in the supply chain designs.
Competency 3: Use data to evaluate the effect of operations management decisions on organizational goals.
Analyze supply chain designs.
Competency 4: Evaluate the effectiveness of operations management strategies to achieve quality and customer service goals.
Recommend a supply chain design for the selected business.
Competency 5: Communicate business needs, opportweekies, and strategies with multiple stakeholders.
Write coherently to support a central idea with correct grammar, usage, and mechanics as expected of a business professional.

Faculty will provide feedback as they were the recipient of your deliverable in the workplace, using the scoring guide. Refer to the scoring guide to ensure that you meet the grading criteria for this assessment before submission.

ePortfolio
This portfolio work project demonstrates your competency in applying knowledge and skills required of an MBA learner in the workplace.

Scoring Guide
Use the scoring guide to understand how your assessment will be evaluated.

Collapse All
Criterion 1
Analyze supply chain designs.
Distinguished
Analyzes supply chains and summarizes key design considerations.

Criterion 2
Analyze the points at which the supply chains intersect with logistics.
Distinguished
Analyzes the points at which the supply chains intersect with logistics and summarizes using relevant management tools to manage the product or service distribution.

Criterion 3
Assess bottlenecks in the supply chain designs.
Distinguished
Analyzes bottlenecks in the supply chain designs using relevant logistics and supply chain management tools to support analysis.

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Sample PowerPoint Presentation:

Slide Content with Speaker Notes

---

Slide 1: Supply Chain Management Plan

• Wild Dog Coffee Company

• Expansion to two stores

• Focus: supply chain and logistics

Speaker Notes:
This presentation outlines the supply chain management plan for Wild Dog Coffee Company as it opens a second location. We will compare two designs, examine logistics, assess bottlenecks, and recommend the best approach.

---

Slide 2: Introduction

• Expansion increases operational complexity

• Supply chain is critical to success

• Goal: efficiency and resilience

Speaker Notes:
Expanding from one store to two requires operational changes. The supply chain is central to smooth operations. Our goal is to design a system that balances efficiency, resilience, and customer service.

---

Slide 3: Current Scenario

• One espresso machine per store

• 7-day lead time for beans

• Stockouts force closure

• Monthly outsourced maintenance

Speaker Notes:
Currently, each store runs with one espresso machine. Beans take seven days to arrive. If beans run out, the store must close. Maintenance is handled externally on a monthly basis.

---

Slide 4: Supply Chain Design I – Centralized

• Central hub manages all inventory

• Bulk ordering cost savings

• Standardization and control

• Risk if hub is disrupted

Speaker Notes:
In a centralized design, a hub manages all procurement and distributes supplies to both stores. This gives efficiency and cost savings but creates systemic risk if the hub is delayed or disrupted.

---

Slide 5: Supply Chain Flow Chart – Centralized

Speaker Notes:
Here you see how supplies move in a centralized system. All products pass through a hub before distribution to stores. If the hub fails, both stores are impacted.

---

Slide 6: Supply Chain Design II – Decentralized

• Stores manage own supplier orders

• Direct deliveries to each store

• Flexibility for local demand

• Higher per-unit costs

Speaker Notes:
In a decentralized system, each store places its own orders. Supplies arrive directly. This model supports flexibility but reduces purchasing power and requires stronger store-level discipline.

---

Slide 7: Supply Chain Flow Chart – Decentralized

Speaker Notes:
Here supplies flow directly from suppliers to each store. Stores operate independently. Disruptions in one location don’t affect the other, but coordination is less efficient.

---

Slide 8: Logistics Intersections

• Inbound deliveries and lead times

• Storage capacity limits

• Outbound service speed

Speaker Notes:
Logistics connects both models at three points: supplier deliveries, limited storage for milk and beans, and barista speed in serving customers.

---

Slide 9: Bottlenecks

• 7-day lead time for beans

• Single machine capacity limits

• Hub dependency in centralized design

• Inconsistent ordering in decentralized design

Speaker Notes:
The biggest bottlenecks are bean delivery lead times, machine throughput during peak hours, hub risks in centralized designs, and inconsistent ordering in decentralized designs.

---

Slide 10: Overcoming Bottlenecks

• Safety stock for beans

• Dual sourcing and backups

• Manager training on forecasting

• Add second machine for busy stores

Speaker Notes:
Bean safety stock protects against delays. Backup sourcing builds resilience. Store managers need training to forecast demand. In busy locations, a second espresso machine solves throughput issues.

---

Slide 11: Value of Supply Chains

• Consistency in service

• Lower costs with planning

• Resilience during disruptions

Speaker Notes:
Strong supply chains prevent shortages, improve customer trust, and reduce costs. Research shows firms with resilient supply chains recover faster from disruptions and maintain customer satisfaction.

---

Slide 12: Recommendation

• Adopt decentralized supply chain

• More resilient and flexible

• Scalable for future growth

Speaker Notes:
The decentralized design is recommended. It reduces risk and gives each store autonomy. As the company grows beyond two stores, regional hubs can later be introduced.

---

Slide 13: Next Steps

• Train managers in demand planning

• Set safety stock and reorder rules

• Negotiate supplier contracts

• Review machine needs per store

Speaker Notes:
The next steps include training staff, setting inventory rules, strengthening supplier contracts, and reviewing machine capacity.

---

Slide 14: References

• Ivanov & Dolgui (2020)

• Kumar & Suresh (2021)

• Christopher (2022)

• Rajesh (2021)

• Esper & Badar (2019)

Speaker Notes:
These works support the analysis, covering resilience, supply chain design, and logistics management.