sustainable growth through network optimization
DESCRIPTION
Sustainable Growth through Network Optimization. Team 6 Dongfang Wu YosukeKomori Meng-iChou TatsukiIbuki. Presenter: Dongfang Wu. Agenda. Root Cause Analysis Improvement Goal Short-term Operation Long-term Operation Summary. Presenter: Dongfang Wu. Middle West Region. - PowerPoint PPT PresentationTRANSCRIPT
Sustainable Growth through Network Optimization
Team 6Dongfang Wu
Yosuke KomoriMeng-i ChouTatsuki Ibuki
GSCMI 2013 Case Competition 2
Agenda
Root Cause Analysis Improvement Goal Short-term Operation Long-term Operation Summary
Presenter: Dongfang Wu
GSCMI 2013 Case Competition 3
East Coast
West Coast
South Region
Middle West Region
Presenter: Dongfang Wu
GSCMI 2013 Case Competition 4
Root Cause Analysis Performance Evaluation Operation Comparison Between CMSC in West and East.
Presenter: Dongfang Wu
CMSC in East CMSC in West(using frequent
freight transportation)
Annual order value (thousand dollar) 46,053 46,418
Annual sales (thousand dollar) 39,623 40,609
Average DOH(days) 41 37.75
Annual shortage ratio ( Transportation emergence)
4.91% 10.1%SF:23.9%; LA: 10%;
Fill rate 94% 88%
Rate of ordering from internal suppliers
86% 86%Using assumed lead time for calculation.
GSCMI 2013 Case Competition 5
Product Shortage Analysis
Shortage Rate in West
SATSVC
Shortage Rate in East
SATSVC
81.7%
18.3%28%
72%
Presenter: Dongfang Wu
GSCMI 2013 Case Competition 6
Order by Source Analysis
24%
14%
24%0%
8%
30%
Rate of Ordering by source in East
From NC
From SC
From W34
From W87
From DBN
From external supplier
24%
14%
13%12%2%
3%
32%
Rate of Ordering by source in West
From NC
From SC
From W34
From W87
From DBN
From CDC
From external supplier
Presenter: Dongfang Wu
GSCMI 2013 Case Competition 7
Improvement Goal For Short-term Operation CMSCs in West maintains the same inventory management
level as in East.
For Long-term Operation To ensure a sustainable growth.
Current situation
(using frequent freight transportation)
Target
Fill rate 88% 94%ROP(thousand dollar) 114,229 242,573SS(thousand dollar) 83,772 149,098
DOH(days) 37.75 41Ending Inventory Level (thousand dollar)
858,154 932,035
Presenter: Dongfang Wu
Using assumed lead time for calculation.
GSCMI 2013 Case Competition 8
Short-term Operation
Highly modular design Generic product manufacturing
in plant Reduce uncertainties
Postponement of Differentiation
Presenter: Meng-I Chou
GSCMI 2013 Case Competition 9
Milk RunPresenter: Meng-I Chou
GSCMI 2013 Case Competition 10
Renting a Warehouse
Reduce lead time Increase flexibility of LA and
SF Fulfill customers demand
Presenter: Meng-I Chou
GSCMI 2013 Case Competition 11
Long-term Operation Build small warehouses such as DBN
Decrease shipping cost Improve daily lead time between CMSCs and
warehouses
Establish CMSCs near new small warehouses Expand market Improve customers’ response time
Presenter: Tatsuki Ibuki
GSCMI 2013 Case Competition 12
Target Cities for New WarehouseSalt Lake
CityChicago
New Jersey
Presenter: Tatsuki Ibuki
GSCMI 2013 Case Competition 13
Benefits of New Small Warehouses
W34W87
Salt Lake City
ChicagoNew Jersey
Shipping Cost Lead Time
Presenter: Tatsuki Ibuki
GSCMI 2013 Case Competition 14
Benefits of New CMSCs
W34W87
Salt Lake CityMinneapolis
Kansas City
Memphis
New Orleans
Albuquerque
New CMSCs
Chicago
New Jersey
Presenter: Tatsuki Ibuki
GSCMI 2013 Case Competition 15
Summary Short-term
Operation Postponement of
Differentiation Milk-run Forecast
Improvement Ordering System
Revaluation (Kanban)
Long-term Operation New Warehouses
Location Salt Lake City Chicago New Jersey
Lower Shipping Cost Shorter Lead Time
New CMSCs Information System
Presenter: Yosuke Komori
GSCMI 2013 Case Competition 16
Thank you!