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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.

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Sustainable Growth through Network Optimization

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

  2. Agenda (Ratna Buelah) Problem Optimization model Recommendations – Short term Eaton Corporation Recommendations – Long term Q & A

  3. Problems(Jonathan Westwood) • High premium shipping costs

  4. Problems(Jonathan Westwood) • Internal inefficiencies: high inventories

  5. Problems(Jonathan Westwood) • Frequent Stock outs at W87

  6. Optimization Model(William Hinson) • Shipping costs and capacity – Given • Assumption: Total orders in 2013 represent demand LTL shipping available & cost remains stable

  7. Recommendations(Edward Addo-Chidie) • Short term strategy • Optimize factory shipments

  8. Recommendations(Edward Addo-Chidie)

  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)

  10. Recommendations(Ratna Kondra) • Long term strategy • Increase capacity at W87 by 200% in 2 years

  11. Recommendations(Ratna Buelah) Long term strategy • Possibly add storage to CMSCs similar to DBN in Dallas (more data is needed to evaluate this)

  12. Q&A

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