Author: Rachel Goldsbury
Course: QSO 635 International Supply Chain Management
Instructor: Dr. Knopp
Date: December 16, 2024
This paper evaluates South Korea vs. Russia as locations for a new Walmart manufacturing facility. Using the Factor Rating Method (FRM) and supply-chain principles (MRP, forecasting, capacity, scheduling), the analysis weighs logistics & infrastructure, labor, market potential, and political/economic stability.
Recommendation: South Korea—strong infrastructure, skilled labor aligned with automation, robust market adjacency, and greater stability.
➡️ Full paper (PDF): walmart_facility_location_proposal.pdf
- Framework: Material Requirements Planning (MRP), forecasting, capacity planning, automated scheduling.
- Result: South Korea scores higher on logistics, stability, market potential, and skilled labor; Russia’s lower labor cost doesn’t offset these strategic advantages.
- Constraints Addressed: port congestion, customs delays, supplier capacity, urban traffic, logistics costs.
- Inventory Strategy: Pull-led system with selective push for critical/high-demand items to balance responsiveness and availability.
- Warehousing Strategy: automation, lean/JIT, cross-docking, and co-location with manufacturing to cut lead time and cost.
- Quality Practices: TQM culture, Six Sigma for variance reduction, ongoing training.
| Factor | Weight |
|---|---|
| Logistics & Infrastructure | 30% |
| Market Potential | 25% |
| Political/Economic Stability | 25% |
| Labor Availability & Cost | 20% |
The FRM scoring favors South Korea on logistics, stability, market potential, and skilled labor. Russia’s lower labor cost does not offset these advantages.
- Aligns with Walmart’s global platform and automation investments.
- Reduces risk of supply chain shocks; improves service levels and cost structure.
- Provides a clear, reproducible location decision method using FRM.
walmart_facility_location_proposal.pdf— full academic write-up
- Skim this README for context and rationale.
- Open the PDF for detailed sources, analysis, and references.