Team Name: Oriental DragonJingru KangShu WangZheng XiaYazhou Liu

GSCMI 2013 Case Competition 2

Agenda(Shu)

Problem statementRecommendationAlternative options

AssumptionsAnalysis

Potential influenceConclusion

Q&A

GSCMI 2013 Case Competition 3

Problem Statement(Shu)

How to optimize the network efficiency

Long term problem Short term problem

long term: continuous growth

short term: west coast performance improvement

GSCMI 2013 Case Competition 4

Recommendation(Shu) To build another major warehouse at the

west coast.

GSCMI 2013 Case Competition 5

Alternative options(Yazhou) To create one or more new CMSC sitesa) -lower logistic costb) -higher responsiveness

To extend the plant storage of CMSCs.a) Shorten distance supplyb) Relieve the pressure on existing warehouse

To outsource products from external suppliers.

a) Get the lower bid priceb) Flexible production range

GSCMI 2013 Case Competition 6

Assumptions(Yazhou) Economic environment keeps unchanged

No political or military conflict

The electrical utility industry maintains a stable growth

Eaton will not suffer any financial distress

GSCMI 2013 Case Competition 7

Analysis(Yazhou)Total of W87+CDC&DBN Difference 1,080,247 193,242 163,558 1,179,446 537,223 498,870 458,837 1,112,217 29,386 1,711,227 401,532 1,421,884 921,208 1,131,025 13,231 2,985,755 1,256,186

(227,635)

231,905 627,695 416,346 1,323,287 59,982 1,477,315 461,698 978,681 157,811 1,794,169 1,976,522

(1,238,183)

955,972 184,572 312,113 563,441 597,049 862,891 797,121

(341,985)

369,873 318,047 670,092 905,379 1,135,227

(578,832)

940,161

(201,734)

434,030 941,391 14,377,309 17,622,165

Left column: purchased order from W87 and CDC&DBNRight column: subtracted from W34

Conclusion: Due to stock out of W87, CMSCs in west coast spend a large amount of money purchasing order from W87. Building a new major warehouse in west coast, these expenses could be less.

GSCMI 2013 Case Competition 8

Analysis(Zheng)

Major orders come from CMSCs in west coast and south region.

Q1 Q2 Q3 Q4Los Angeles-SVC 2,087,649 1,958,183 1,779,257 1,440,423

Atlanta-SVC 1,997,323 1,991,969 2,100,164 2,002,098 Dallas-SAT 1,535,963 1,553,697 1,709,034 1,838,221

Houston-SVC 1,713,467 1,892,835 2,273,562 2,318,118 Los Angeles-SAT 2,440,040 2,471,141 2,431,816 2,260,738 Dallas-SVC 2,435,590 2,414,844 2,417,773 2,049,403

GSCMI 2013 Case Competition 9

Potential influence(Zheng) Pros Shipping cost

reduce(CMSCs) Decrease the back

order from CMSCs Improve the

customers loyalty and good will

Cons High budget at the

beginning New operation plan

on west coast and south region(labor,

R&D, construction)

GSCMI 2013 Case Competition 10

Conclusion(Zheng) Problem: How to optimize the network

efficiency long term: continuous growth short term: west coast performance improvement Recommendation: To build another major

warehouse at the west coast.

GSCMI 2013 Case Competition 11

Q&A?

GSCMI 2013 Case Competition 12

Thank you!