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Plaza, the Logistics Park of Zaragoza - Case Solution

Noel Watson; Santiago Kraiselburd | Harvard Business Review ( 609113-PDF-ENG ) | June 29, 2009 (Revision: 2023-09-21)
Abstract:

The Government of the Autonomous Community of Aragón, Spain was planning a project for a logistics park, known as PLAZA (an acronym for Zaragoza Logistics Platform), in the city of Zaragoza. This case looks into the factors which caused the conceptualization of the project.

Case Questions Answered

  • Calculate the total relevant costs of each option for a Plaza Park customer.
  • How would the customer's conclusions change if the following assumptions changed:(i) Demand was more/less uncertain(ii) The number of units per container changed(iii) The service level increased(iv) The product cost increased/decreased
  • What other issues (besides the one presented) should the customer take into account?
  • What opinion would you have about setting up more than one DC to cover Europe (i.e., one in PLAZA and one in Rotterdam)?

This case solution includes an Excel file with calculations that will be available after purchase.

This case solution includes an Excel file with calculations.

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Q1. Calculate the total relevant costs of each option for a Plaza Park

customer.

Data Given in the Case

Plaza, the Logistics Park of Zaragoza

Total relevant costs of each option for a parkcustomer

Supply Chain Flow and respective lead times

Inventory and Safety Stock

Cost of Transportation

Cost of Delivery

Plaza - Cost Summary

2. How would the customer’s conclusions change if the following

assumptions changed:

(i) Demand was more/less uncertain

Changes in Customers Conclusion

A higher…

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