Manufacturing and Service Analysis for Peapod: Current Situation: Peapod operates under a centralized distribution model with two formats: warehouses and warerooms. Both provide next-day delivery, but warerooms, which are dedicated areas attached to Ahold U.S.A. stores, are used as business is developing in new markets and leveraging the store�s infrastructures [1]. The company�s warerooms, at 7,000 square feet each, are adjacent to partner stores in 13 locations in five states. Peapod�s warehouses are 75,000-square foot, climate-controlled distribution centers in Lake Zurich, Illinois and Gaithersburg, Maryland [4]. From the company's freestanding warehouses and warerooms, Peapod trucks fan out each day to make deliveries into neighborhoods in 15 U.S. markets. For a fee as low as $6.95, most customers can place orders for delivery as soon as next-day (within a two-hour window) or even days or weeks in advance [3]. Peapod�s model of industrial efficiency requires direct labor to be visibly working at all times and the scheduling of the line is largely based on direct labor ......

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