Midterm Notes Modeling and Best Decision SAILS & Manugistics Powerpoint Slides Presentations

Modeling Modeling and software are tools to help make better decisions. Model results are input for decision makers. With software we can easily perform additional analyses (scenarios) as desired. –Changing demand. –Changing costs. –Changing locations and capacities. –New products, locations, resources. –etc.

Best Decision (Network Design) Minimum cost solution may not be best. Consider: –Service levels. –Additional revenue from improved service. –Number of plants and DCs. –Multiple vs. single sourcing for customers. Several solutions have similar costs. –Report % change in costs. –Consider accuracy: $342,000 vs. $342,

Best Decision (Network Design) Solution reported may not be true optimum. –Solution depends on solver and input data. –Solver uses tolerances (1%) to find optimum. –Data are estimates. Best decision is based on model output and other factors.

SAILS vs Manugistics Both provide “optimal” solution. –To a certain tolerance. –For given input data. Service levels: outbound distances. –SAILS handles service constraints easily. –SAILS provides limited output on service levels. –Manugistics can also handle service levels, but not so easily.

SAILS vs Manugistics Manugistics NetWORKS Strategy is one module in a suite of products. Data transfer from other Manugistics modules may be easy - or not. SAILS is a stand-alone network design package. SAILS provides nice maps to help visualize networks and spatial patterns.

Powerpoint Slides Goal is clear and effective communication. –Do not put too much on one slide. –Consider color, background, font, sizes of text, etc. Use Powerpoint to make clearer tables and diagrams, rather than using software output. Key idea should jump off the page.

RECOMMENDATION In all the scenarios the Chicago DC proved not to be cost effective. Close Chicago DC: Currently, customers aren’t close enough to be profitable Keep Chicago DC: Find customers closer to Chicago for them to service and be profitable.

RECOMMENDATION In all scenarios the Chicago DC proved not to be cost effective. Close Chicago DC Currently, customers aren’t close enough to be profitable. Keep Chicago DC Find customers closer to Chicago for them to service and be profitable.

Presentations Speak to audience, not screen. Speak clearly, loudly and confidently. Carefully consider questions asked. –Consider cost tradeoffs. –Consider cost vs. service. –Is an answer implied in the question?