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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.

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Sustainable growth through network optimization

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

Q & A


Problems jonathan westwood
Problems(Jonathan Westwood)

  • High premium shipping costs


Problems jonathan westwood1
Problems(Jonathan Westwood)

  • Internal inefficiencies: high inventories


Problems jonathan westwood2
Problems(Jonathan Westwood)

  • Frequent Stock outs at W87


Optimization model william hinson
Optimization Model(William Hinson)

  • Shipping costs and capacity – Given

  • Assumption:

    Total orders in 2013 represent demand

    LTL shipping available & cost remains stable


Recommendations edward addo chidie
Recommendations(Edward Addo-Chidie)

  • Short term strategy

    • Optimize factory shipments


Recommendations edward addo chidie1
Recommendations(Edward Addo-Chidie)


Recommendations edward addo chidie2
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)


Recommendations ratna kondra
Recommendations(Ratna Kondra)

  • Long term strategy

    • Increase capacity at W87 by 200% in 2 years


Recommendations ratna buelah
Recommendations(Ratna Buelah)

Long term strategy

  • Possibly add storage to CMSCs similar to DBN in Dallas (more data is needed to evaluate this)



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