1 / 48

Milliken Asia

Milliken Asia. Presented by Christina Jones & Rajani Shenoy Arvind Ganesan, Siddharth Gudal, Tarun Keswani, Clarence Wardell. Agenda. Overview & Assumptions Case 1: Current Demand Case 2: Current Forecasted Demand Conclusions. Company Overview.

ramer
Download Presentation

Milliken Asia

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Milliken Asia Presented by Christina Jones & Rajani Shenoy Arvind Ganesan, Siddharth Gudal, Tarun Keswani, Clarence Wardell

  2. Agenda • Overview & Assumptions • Case 1: Current Demand • Case 2: Current Forecasted Demand • Conclusions

  3. Company Overview • One of the largest privately held textile and chemical manufacturers in the world • Located in Spartanburg, SC • Milliken Chemical, a division of Milliken & Company, makes hundreds of products and colorants for paint, petroleum, plastics, textiles, fibers, and other manufacturing processes. www.milliken.com

  4. Project Overview • Milliken’s chemical division is looking to expand their warehousing in the Asia – Pacific Region • Where should warehouses be located in order to support customers in this region, with respect to: • Reduction of Lead Time for product delivery to the customer • Reduction of Overall Costs to Milliken, and consequently costs incurred by the customer

  5. Project Overview • Divide the problem into four independent sub-problems, two will be discussed: • Case 1: 2005 “Current Demand” • Demand currently served out of temporary warehouses in Asia-Pacific Region • Case 2: Forecasted “Current Demand” • 2010 Forecast for demand currently served out of temporary warehouses in Asia-Pacific Region

  6. Set of Potential WHs • Demand at each Point • Distance btw/ WH & Point • Number of Warehouses to open (1, 2, 3, 4, or 5) • Assume unlimited capacity warehouses • Given inputs find optimal warehouse locations that minimize total distance traveled by products • Determine resulting lead times from warehouse to demand point, given optimal locations • Determine Inventory Requirements at each warehouse (Pipeline, Cycle, Safety) • Where and how many warehouses should Milliken open? Process Inputs Optimization Analysis Conclusions

  7. Potential Warehouse Locations • Assume port cities are potential warehouse locations • Singapore • Busan, S. Korea • Bangkok, Thailand • Kaohsiung, Taiwan • Shanghai, China • Hong Kong • Port Klang, Malaysia • Guangzhou, China • Beijing, China • Jakarta, Indonesia • Melbourne, Australia • Manila, Philippines • Pasir Gudang, Malaysia • Seoul, S. Korea • Taipei, Taiwan • Johor Darul, Malaysia Note: No Potential Warehouses in India (due to restrictions) and Japan (due to high costs)

  8. Map of Potential Warehouse Locs

  9. How Many Warehouses? • Assume that Milliken will: • Open no more than 5 Warehouses in Asia • Reposition currently operated, but not-owned, warehouses • Assume that new warehouses will not be constrained by capacity

  10. Demand at Each City • Demand in 14 Countries / Regions • Japan, Korea, Taiwan, Thailand, China, Malaysia, Australia, Hong Kong, India, Indonesia, Philippines, New Zealand, Vietnam, & Fiji • Data received for 2005, YTD 2006, and Forecasted 2010 • Aggregate demand over city & product • Case 1: 2005 • Case 2: 2010

  11. Distance Traveled • For each Demand Point and Potential Warehouse: • Determine Latitude & Longitude for each city • Calculate great arc distances between two points

  12. Facility Location Problem • Locate warehouses such that Total Distance weighted by Demand Volumeis minimized • Satisfy capacity and demand constraints • Do not exceed max number of warehouses allowed

  13. Problem Formulation Subject to: Minimize total distance where:

  14. Safety Stock • Sensitivity Analysis: Service Levels 80%, 90% , 99% • Average Daily Demand – shifted from demand points to assigned Warehouses • Standard Deviation in Daily Demand • Average Lead Time from Spartanburg to opened Warehouse Locations • Standard Deviation in Lead Time (10% Variance assumed) Case 4

  15. Cycle Stock and Pipeline Inventory • Fixed Shipment Cost of $3,000 • Net Weighted Unit Inventory Cost of $2.194 • Holding Cost – 20% of Net Weighted Unit Inventory Cost • Average coverage of 210 miles per day during transit for calculation of transit times to warehouse locations

  16. Agenda • Overview • Case 1: 2005 Current Demand • Case 2: 2010 Forecasted Demand • Conclusions

  17. Case 1: Current Demand Profile • Korea comprises the most demand with 260,000 units/year • Vietnam is the least with 90 units/year Case 1

  18. Case 1: Map of Demand Points Case 1

  19. Case 1: Optimal Warehouse Location Case 1

  20. Results for One Warehouse Case 1

  21. Results for Two Warehouses Case 1

  22. Results for Three Warehouses Case 1

  23. Results for Four Warehouses Case 1

  24. Results for Five Warehouses Case 1

  25. Pipeline Inventory Case 1

  26. Annual Cycle Stock Case 1

  27. Safety Stock Case 1

  28. Maps Case 1

  29. Maps Case 1

  30. Recommendation • In order to achieve 1 week lead times, must open at least 3 warehouses in Bangkok, Seoul, and Melbourne • Need cost data to formulate final recommendation Case 1

  31. Agenda • Overview • Case 1: 2005 Current Demand • Case 2: 2010 Forecasted Demand • Conclusions

  32. Case 2: Forecasted Demand Profile • Korea comprises the most demand with 297,000 units/year • Vietnam is the least with 135 units/year Case 2

  33. Case 2: Map of Demand Points Case 2

  34. Case 2: Optimal Warehouse Location Case 2

  35. Results for One Warehouse Case 2

  36. Results for Two Warehouses Case 2

  37. Results for Three Warehouses Case 2

  38. Results for Four Warehouses Case 2

  39. Results for Five Warehouses Case 2

  40. Pipeline Inventory Case 2

  41. Annual Cycle Stock Case 2

  42. Safety Stock Case 2

  43. Maps

  44. Maps

  45. Recommendation • In order to achieve 1 week lead times, must open at least 3 warehouses in Bangkok, Shanghai, and Melbourne • Need cost data to formulate final recommendation Case 2

  46. Agenda • Overview & Assumptions • Case 1: Current Demand • Case 2: Current Forecasted Demand • Conclusions

  47. Conclusions • Must explore option to open warehouse in India in order to minimize lead times • Consistent warehouse locations in Bangkok, Seoul, Taipei, Melbourne & Johor Darul from 2005 & 2010 • Cost data pending from client to make final recommendations

  48. Questions?

More Related