A simple case study ppt.

1. by Aashish Panwar
:
Anubhaw Kumar Shandilya
Ishan Bhalchakra

2.  established in 1964 - family venture – grows
during 70's and 80's at a fairly steady rate.
 manufacturing plants in Atlanta and Denver.
 1⁰ Warehouses – 17 in numbers.
 Around Retail Stores.
 Gross Margin – 20 %
 Newly functioning CEO along with 12 Shareholders.

3.  Production and Distribution Strategy:
produce & store at the manufacturing plant.
pick, load, & ship to warehouse center.
unload and store at warehouse.
Pick, load, & deliver to stores.
Inefficient Supply Chain:
inbound truck utilization,
inventory turns, &
low service levels …

4.  Improving the effectiveness and aligning the cost of
service.
 Reengineering the production, inventory, & logistics
functions.
 To Define the best network configuration.
 To determine the positioning of inventory.
 To focus on specificity on the production process in
the plants.

5.  Data for demand in 2004 by SKU per
product Family for each customer
zone.
 Definition
 Annual production capacity (in SKU)
 Warehousing item
at each manufacturing plant. that is unique because
 Maximum capacity (SKUs) for each of some characteristic
(such as brand, size,
warehouse, new and existing. color, model) and
must be stored and
 Transportation costs per product accounted for
family per mile. separate from other
items. Every SKU is
 Setup cost for establishing a assigned a unique
warehouse . identification number
(inventory or stock
 Potential locations for new warehouse. number).

6.  High degree of Services – other competing products
in the market.
 Delivery Time 1 day for most of the retail outlets.
 Non building of manufacturing plant – Risk &
Uncertainty involved.
 Non uniform volume growth as the product is varying
amongst product family.
Estimated Yearly Growth(2006-07):
Family
1 2 3 4 5
multiplier
1.07 1.03 1.06 1.05 1.06

7.  Demand Estimation:- To locate customers, retailers,
warehouses (1⁰ & 2⁰), suppliers, & production.
 Customer Segmentation:- To know the product variety,
and distribution of product to a particular customer
zone.
 Warehouse: To consider total number of warehouses,
location of warehouse, number of SKUs, warehouse
capacity, maintenance cost of inventory etc.
 Analysis:- Least cost square method, Linear
programming model.

8.  Reduction in lead time:- EDI (Electronic Data
Intervention).
 Strategic Partnership: Vendor managed Inventory.
 Reduction in Risks & Uncertainty: Through Point of
Sale, Sharing Information, & using proper forecasting
model and sharing with other stakeholders.

10. Paint your life with…
Bis Paints!!