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

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

3. 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

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

5. 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

6. 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

7. GSCMI 2013 Case Competition 7 Analysis (Yazhou) Total of W87+CDC&DBNDifference 1,080,247 193,242 163,558 1,179,446 537,223 498,870 458,837 1,112,217 29,386 1,711,227 401,532 1,421,884 921,208 1,131,025 13,231 2,985,755 1,256,186 (227,635) 231,905 627,695 416,346 1,323,287 59,982 1,477,315 461,698 978,681 157,811 1,794,169 1,976,522 (1,238,183) 955,972 184,572 312,113 563,441 597,049 862,891 797,121 (341,985) 369,873 318,047 670,092 905,379 1,135,227 (578,832) 940,161 (201,734) 434,030 941,391 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.

8. 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

9. 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)

10. 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.

11. GSCMI 2013 Case Competition 11 Q&A?

12. GSCMI 2013 Case Competition 12 Thank you!