Question

Consolidated Supplies is a medium-sized distributor of restaurant supplies that operates in Canada and several northern U.S. states. They have 12 large warehouses spread across both countries to service their many customers. Products arrive from the manufacturers and are stored in the warehouses until they are picked and put on a truck for delivery to their customers. The networking equipment in their warehouses is old and is starting to give them problems; these problems are expected to increase as the equipment gets older. The vice president of operations, Pat McDonald, would like to replace the existing LANs and add some new wireless LAN technology into all the warehouses, but he is concerned that now may not be the right time to replace the equipment. He has read several technology forecasts that suggest there will be dramatic improvements in networking speeds over the next few years, especially in wireless technologies. He has asked you for advice about upgrading the equipment.

Should Consolidated Supplies replace all the networking equipment in all the warehouses now, should it wait until newer networking technologies are available, or should it upgrade some of the warehouses this year, some next year, and some the year after, so that some warehouses will benefit from the expected future improvements in networking technologies?

Answer 1

Consolidated Supplies

Consolidated Supplies should upgrade some of the warehouses this year, some next year, and others the year after, so that some warehouses will benefit from the expected future improvements in networking technologies.

Step-by-step explanation:

Gradual technology upgrade should be the way forward for Consolidated Supplies. Waiting until newer networking technologies are available is not an option. Total replacement of all the networking equipment in all the warehouses is not an option, as technology equipment becomes obsolete in no time. Overall, Consolidated Supplies should never forget the numerous benefits from technology upgrade, including reduction of downtime, increased productivity, and improved customer services and satisfaction.