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Modeling a Conversion of Suppliers from Prepaid to Collect (P2C) System

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Modeling a Conversion of Suppliers from Prepaid to Collect (P2C) System Project # UA10 – Sam’s Club. Project Team Principal Investigator Dr. Sarah Root (PI) Co-Principal Investigator Dr. Russell Meller Graduate Assistant Prabuddha Lohani. Project Motivation Sam’s Club

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Modeling a Conversion of Suppliers from Prepaid to Collect (P2C) System

Project # UA10 – Sam’s Club

Project Team

Principal Investigator Dr. Sarah Root (PI)

Co-Principal Investigator Dr. Russell Meller

Graduate Assistant Prabuddha Lohani

Project Motivation

  • Sam’s Club
    • A division of Wal-Mart Stores, Inc. serving as a membership only retail warehouse club
    • Nearly 600 locations in US
  • P2C Conversion
    • Identify opportunities to reduce costs by moving to collect terms
    • Quantitative tradeoff between different level of service and the cost is unknown

Project Objectives

  • Develop a model to estimate baseline inbound transportation cost increases as a result of P2C conversion
  • Help in prioritizing the suppliers converting from prepaid to collect
  • Construct a model to estimate the effect of MABD on transportation cost
  • Validation of model, working toward a larger implementation

Project Activities

  • Data Collection and Analysis
  • Formulation of Strategy
  • Mathematical Modeling of Operational Problems
  • Sensitivity Analysis
  • Documentation
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