sustainable growth through network optimization

12
Sustainable Growth through Network Optimization Team 9 Edward Addo-Chidie Jonathan Westwood Ratna Buelah Kondra William Ebow Hinson

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Sustainable Growth through Network Optimization. Team 9 Edward Addo-Chidie Jonathan Westwood Ratna Buelah Kondra William Ebow Hinson. Agenda (Ratna Buelah). Problem. Optimization model. Recommendations – Short term. Eaton Corporation. Recommendations – Long term. - PowerPoint PPT Presentation

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Page 1: Sustainable Growth through  Network Optimization

Sustainable Growth through Network Optimization

Team 9 Edward Addo-ChidieJonathan Westwood

Ratna Buelah KondraWilliam Ebow Hinson

Page 2: Sustainable Growth through  Network Optimization

GSCMI 2013 Case Competition 2

Problem

Optimization model

Q & A

EatonCorporation

Recommendations – Short term

Agenda (Ratna Buelah)

Recommendations – Long term

Page 3: Sustainable Growth through  Network Optimization

GSCMI 2013 Case Competition 3

Problems (Jonathan Westwood) High premium shipping costs

Page 4: Sustainable Growth through  Network Optimization

GSCMI 2013 Case Competition 4

Problems (Jonathan Westwood) Internal inefficiencies: high

inventories

Page 5: Sustainable Growth through  Network Optimization

GSCMI 2013 Case Competition 5

Problems (Jonathan Westwood) Frequent Stock outs at W87

Page 6: Sustainable Growth through  Network Optimization

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

Page 7: Sustainable Growth through  Network Optimization

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

Page 8: Sustainable Growth through  Network Optimization

GSCMI 2013 Case Competition 8

Recommendations (Edward Addo-Chidie)

Weight delivered from each sourceFayettevill

e, NC Sumter, SC W34 W87 CDC DBN Arden, NC Beaver, PAEl Paso,

TXRaleigh,

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

Page 9: Sustainable Growth through  Network Optimization

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)

Page 10: Sustainable Growth through  Network Optimization

GSCMI 2013 Case Competition 10

Recommendations (Ratna Kondra)

Long term strategy Increase capacity at W87 by 200% in 2 years

W87Others

El Paso, TX NC

Sumter, SCRaleigh, NCBeaver, PA

CDC & DBNFayetteville, NC

Arden, NCPuerto 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

Page 11: Sustainable Growth through  Network Optimization

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)

Page 12: Sustainable Growth through  Network Optimization

GSCMI 2013 Case Competition 12

Q&A