Sustainable Growth through Network Optimization Team 9 Edward Addo-Chidie Jonathan Westwood Ratna Buelah Kondra William Ebow Hinson.

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Presentation transcript:

Sustainable Growth through Network Optimization Team 9 Edward Addo-Chidie Jonathan Westwood Ratna Buelah Kondra William Ebow Hinson

GSCMI 2013 Case Competition 2 Problem Optimization model Q & A Eaton Corporation Recommendations – Short term Agenda (Ratna Buelah) Recommendations – Long term

GSCMI 2013 Case Competition 3 Problems (Jonathan Westwood)  High premium shipping costs

GSCMI 2013 Case Competition 4 Problems (Jonathan Westwood)  Internal inefficiencies: high inventories

GSCMI 2013 Case Competition 5 Problems (Jonathan Westwood)  Frequent Stock outs at W87

GSCMI 2013 Case Competition 6 Optimization Model (William Hinson)  Shipping costs and capacity – Given  Assumption: Total orders in 2013 represent demand LTL shipping available & cost remains stable

GSCMI 2013 Case Competition 7 Recommendations (Edward Addo-Chidie)  Short term strategy  Optimize factory shipments Demand Unmet Demand$1,680,828 1,391,7700Shipping Cost 475,3190 1,217,881016,251, ,4320Total capacity 1,702,9360 1,061,806014,647,223 1,194,8000Total demand 1,319,8690 1,707, % 485,2950Utilization 661, , , , , ,9940

GSCMI 2013 Case Competition 8 Recommendations (Edward Addo-Chidie) Weight delivered from each source Fayettevill e, NC Sumter, SCW34W87CDCDBNArden, NC Beaver, PA El Paso, TX Raleigh, NC NCOthers ATL001,391, Balt ,319 Chi00366, , Cle , Dal1,130, , , Den000559, , Hart077, ,117,691 Hou001,319, L.A.0001,707, NJ ,295 Orl661, Phx000540, Ral , ,268 StL00378, , SF000505, Sea000580, Capac3,506,1622,313,8123,675,357666,013709,653354,827182,2231,460,456502,457286,187171,8462,422,574 Excess1,714,2422,236, , ,8460

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)

GSCMI 2013 Case Competition 10 Recommendations (Ratna Kondra)  Long term strategy  Increase capacity at W87 by 200% in 2 years

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)

GSCMI 2013 Case Competition 12 Q&A