Team Name: Oriental Dragon Jingru Kang Shu Wang Zheng Xia Yazhou Liu

GSCMI 2013 Case Competition 2 Agenda (Shu) Problem statement Recommendation Alternative options Assumptions Analysis Potential influence Conclusion Q&A

GSCMI 2013 Case Competition 3 Problem Statement (Shu)  How to optimize the network efficiency Long term problemShort term problem long term: continuous growth short term: west coast performance improvement

GSCMI 2013 Case Competition 4 Recommendation (Shu)  To build another major warehouse at the west coast.

GSCMI 2013 Case Competition 5 Alternative options (Yazhou)  To create one or more new CMSC sites a)-lower logistic cost b)-higher responsiveness  To extend the plant storage of CMSCs. a)Shorten distance supply b)Relieve the pressure on existing warehouse  To outsource products from external suppliers. a)Get the lower bid price b)Flexible production range

GSCMI 2013 Case Competition 6 Assumptions (Yazhou)  Economic environment keeps unchanged  No political or military conflict  The electrical utility industry maintains a stable growth  Eaton will not suffer any financial distress

GSCMI 2013 Case Competition 7 Analysis (Yazhou) Total of W87+CDC&DBNDifference 1,080, , ,558 1,179, , , ,837 1,112,217 29,386 1,711, ,532 1,421, ,208 1,131,025 13,231 2,985,755 1,256,186 (227,635) 231, , ,346 1,323,287 59,982 1,477, , , ,811 1,794,169 1,976,522 (1,238,183) 955, , , , , , ,121 (341,985) 369, , , ,379 1,135,227 (578,832) 940,161 (201,734) 434, ,391 14,377,309 17,622,165 Left column: purchased order from W87 and CDC&DBN Right column: subtracted from W34 Conclusion: Due to stock out of W87, CMSCs in west coast spend a large amount of money purchasing order from W87. Building a new major warehouse in west coast, these expenses could be less.

GSCMI 2013 Case Competition 8 Analysis (Zheng)  Major orders come from CMSCs in west coast and south region. Q1Q2Q3Q4 Los Angeles- SVC 2,087,649 1,958,183 1,779,257 1,440,423 Atlanta-SVC 1,997,323 1,991,969 2,100,164 2,002,098 Dallas-SAT 1,535,963 1,553,697 1,709,034 1,838,221 Houston-SVC 1,713,467 1,892,835 2,273,562 2,318,118 Los Angeles- SAT 2,440,040 2,471,141 2,431,816 2,260,738 Dallas-SVC 2,435,590 2,414,844 2,417,773 2,049,403

GSCMI 2013 Case Competition 9 Potential influence (Zheng)  Pros  Shipping cost reduce(CMSCs)  Decrease the back order from CMSCs  Improve the customers loyalty and good will  Cons  High budget at the beginning  New operation plan on west coast and south region(labor, R&D, construction)

GSCMI 2013 Case Competition 10 Conclusion (Zheng)  Problem: How to optimize the network efficiency long term: continuous growth short term: west coast performance improvement  Recommendation: To build another major warehouse at the west coast.

GSCMI 2013 Case Competition 11 Q&A?

GSCMI 2013 Case Competition 12 Thank you!