trident LOg501 module 3 case and SLP

Module 3 - Case

OPTIMIZING INVENTORY | TRANSPORTATION

Virtual World

EBBD EMAIL – for Internal Use Only

To: You

From: Danny Wilco <dwilco@ebbd.com>

Subject: Re: Quarterly Ordering Decisions

Here is what we would like you to do. We want you to use the Import Beer product line as a test case for developing an optimization program. Use the Excel file that we have developed with the forecast information for the import beer product line. Other information that you will need has been provided by Accounting: inventory holding costs, product costs and price markups.

This information with the Sales Forecast and costs and prices has been provided in the Excel file. [EBBD-ImportsData]

We want you to develop a method that will determine the optimal ordering quantities so that we maximize the gross profits and also take into account inventory holding costs.

After you have developed this method, write a short report to management explaining what you did and how this method can be used going forward on a quarter by quarter basis and for the other product lines.

Also attach any calculations or analysis that you did in an Excel file.

Let me know if you have any questions.

~DW, VP LogOps.

Learning Wizard

If you have done all of the exercises successfully you should be able to easily complete the EBBD assignment from Wilco. Be sure to watch the videos.

Download the EBBD-ImportsData Excel (click on link above) file and look at how it compares to the practice examples in the EBBD Exercises spreadsheet.

Setup the decision cells, the inventory cells and inventory constraints. Then add the calculations for income and costs. Make sure you get the timing right for which inventory is sold in which quarter. You could develop intermediate cells that calculate the costs, just to help you keep track of this. Be sure to use the quarterly inventory holding cost rate. Then calculate the gross profit cell.

Then, open up Solverand add the aspects to it. Make sure that you add a constraint that keeps your inventory values positive.

Once you have the correct solution, save your Excel file and write the report.

Upload the Report to Case 3. Upload the Excel file with the solution to Additional Files in Module 3.

Assignment Expectations of the written report - write the report to your boss, Danny Wilco

The report should thoroughly address these aspects in depth and breadth:

· Problem situation: clearly elucidate the problem situation at EBBD

· Assumptions: what are the assumptions that need to be made and your critical evaluation

· Solution: What is your solution for Order Quantities? Discuss how you developed the Solver solution. Keep in mind that your audience is not too technical and do not need a lot of detail on this.

o Make sure you attach the Excel file.

o You should refer to the Excel file when necessary.

· Recommendations: what do you propose for EBBD in terms of using this method in the future and for the other product lines?

· Justification & Explanation: clear reasoning as to why the recommendations were made

· Writing style & Organization: well-formed sentences and paragraphs, well organized with flow of reason, and good use of language that pertain to concepts and terminology

· Use of references & citations: References are NOT REQUIRED. If you do use any, be sure to include appropriate use of citations in the paper and reference list.

Module 3 - SLP

OPTIMIZING INVENTORY | TRANSPORTATION

SLP 3 - Transportation in the Supply Chain

In this SLP you will identify where the major transportation modes are used in the EESC from SLP3: rail, inland water, ocean steamer, and/or OTR.

There are five basic transportation modes: rail, inland water ways, ocean, over-the-road, and air. We will not be concerned about air transport in this SLP as it is the least used and most expensive in general supply chain transportation.

Review and read these resources on these three transportation modes: rail, inland water, and OTR. Ocean is not included in these readings since it is mainly used for importing and exporting. This will be covered in more detail in LOG502. But you are asked to identify where ocean transport is used, but not in detail.

RESOURCES - SEE SLP 3 RESOURCES IN BACKGROUND PAGE

Session Long Project

Review the EESC from SLP2. Identify in the EESC where each of the four modes of transportation are used: rail, inland water, ocean, and OTR. You can use topic headings for each mode. Identify the materials being transported from which industry to which industry. Discuss why this mode is being used and what the costs are on a per ton-mile basis.

SLP Assignment Expectations

The paper should include:

· Background: Briefly review and discuss the targeted product, company, and industry

· Diagram: Include the diagram of the EESC

· Transportation Discussion: Discuss each of the four transportation modes (rail, inland water, ocean, OTR) in the EESC and where each one is used. Discuss why this mode is used and the costs of using.

· Clarity and Organization: The paper should be well organized and clearly discuss the various topics and issues in depth and breadth.

· Use of references and citations: at least six (6) proper references should be used correctly, cited in the text, and listed in the references using an appropriate style; It is not necessary to use APA format, but it is suggested that this format be used or another format similar.

· Length: The paper should be three to four pages – the body of the paper excluding title page and references page.

NOTE: You can use the transportation resources. You should also do independent research and find at least two additional appropriate references, for a total of at least six.