Sustainable Growth through Network Optimization Team 9 Edward Addo-Chidie Jonathan Westwood Ratna...
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![Page 1: Sustainable Growth through Network Optimization Team 9 Edward Addo-Chidie Jonathan Westwood Ratna Buelah Kondra William Ebow Hinson.](https://reader035.fdocuments.us/reader035/viewer/2022062423/5697bfc81a28abf838ca890b/html5/thumbnails/1.jpg)
Sustainable Growth through Network Optimization
Team 9 Edward Addo-ChidieJonathan Westwood
Ratna Buelah KondraWilliam Ebow Hinson
![Page 2: Sustainable Growth through Network Optimization Team 9 Edward Addo-Chidie Jonathan Westwood Ratna Buelah Kondra William Ebow Hinson.](https://reader035.fdocuments.us/reader035/viewer/2022062423/5697bfc81a28abf838ca890b/html5/thumbnails/2.jpg)
GSCMI 2013 Case Competition 2
Problem
Optimization model
Q & A
EatonCorporation
Recommendations – Short term
Agenda (Ratna Buelah)
Recommendations – Long term
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GSCMI 2013 Case Competition 3
Problems (Jonathan Westwood)
High premium shipping costs
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GSCMI 2013 Case Competition 4
Problems (Jonathan Westwood)
Internal inefficiencies: high inventories
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GSCMI 2013 Case Competition 5
Problems (Jonathan Westwood)
Frequent Stock outs at W87
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GSCMI 2013 Case Competition 6
Optimization Model (William Hinson)
Shipping costs and capacity – Given
Assumption:Total orders in 2013 represent demandLTL shipping available & cost remains stable
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GSCMI 2013 Case Competition 7
Recommendations (Edward Addo-Chidie)
Short term strategy Optimize factory shipments
DemandUnmet
Demand $1,680,8281,391,770 0 Shipping Cost475,319 0
1,217,881 0 16,251,567609,432 0 Total capacity
1,702,936 01,061,806 0 14,647,2231,194,800 0 Total demand1,319,869 01,707,960 0 90.1%485,295 0 Utilization661,880 0540,145 0630,455 0561,014 0505,666 0580,994 0
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GSCMI 2013 Case Competition 8
Recommendations (Edward Addo-Chidie)
Weight delivered from each source
Fayetteville, NC Sumter, SC W34 W87 CDC DBN Arden, NC Beaver, PA
El Paso, TX
Raleigh, NC NC Others
ATL 0 0 1,391,770 0 0 0 0 0 0 0 0 0
Balt 0 0 0 0 0 0 0 0 0 0 0 475,319
Chi 0 0 366,857 0 0 0 0 851,024 0 0 0 0
Cle 0 0 0 0 0 0 0 609,432 0 0 0 0
Dal 1,130,040 0 218,069 0 0 354,827 0 0 0 0 0 0
Den 0 0 0 559,349 0 0 0 0 502,457 0 0 0
Hart 0 77,109 0 0 0 0 0 0 0 0 0 1,117,691
Hou 0 0 1,319,869 0 0 0 0 0 0 0 0 0
L.A. 0 0 0 1,707,960 0 0 0 0 0 0 0 0
NJ 0 0 0 0 0 0 0 0 0 0 0 485,295
Orl 661,880 0 0 0 0 0 0 0 0 0 0 0
Phx 0 0 0 540,145 0 0 0 0 0 0 0 0
Ral 0 0 0 0 0 0 0 0 0 286,187 0 344,268
StL 0 0 378,792 0 0 0 182,223 0 0 0 0 0
SF 0 0 0 505,666 0 0 0 0 0 0 0 0
Sea 0 0 0 580,994 0 0 0 0 0 0 0 0
Capac 3,506,162 2,313,812 3,675,357 666,013 709,653 354,827 182,223 1,460,456 502,457 286,187 171,846 2,422,574
Excess 1,714,242 2,236,704 0 0 709,653 0 0 0 0 0 171,846 0
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GSCMI 2013 Case Competition 9
Recommendations (Edward Addo-Chidie)
Short term strategy Reduce or eliminate premium shipments Reduce or stop sourcing from Puerto Rico
- 97% of Puerto Rico shipments were ordered by Dallas
- Dallas spent the most on premium shipping ($1.6 million)
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GSCMI 2013 Case Competition 10
Recommendations (Ratna Kondra)
Long term strategy Increase capacity at W87 by 200% in 2 years
W87
Others
El Paso, TX
NC
Sumter, SC
Raleigh, NC
Beaver, PA
CDC & DBN
Fayetteville, NC
Arden, NC
Puerto Rico
W34
-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6
Correlation with % Premium Shipping
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GSCMI 2013 Case Competition 11
Recommendations (Ratna Buelah)
Long term strategy Possibly add storage to CMSCs similar
to DBN in Dallas (more data is needed to evaluate this)
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GSCMI 2013 Case Competition 12
Q&A