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Supply Chain analysis at Purdue University Team Name: Panda Elites Xian Zhu Junming Liu Yu He Yangon Chen Agenda (Xian Zhu) Objectives Concerns Data Analysis Proposals Recommendations GSCMI 2013 Case Competition 2 Objectives (Xian Zhu) Short-term To balance the performance between the west & east coasts Lower the Transportation Cost in the western sites; Lower the Inventory Cost in the western sites Long-term Support the growth of the whole Eaton Power Distribution Systems Lean operation GSCMI 2013 Case Competition 3 Concerns (Xian Zhu) From the Data High Turnover rate of Dallas SVC The huge monthly variation of demand The frequent usage of premium freight The limited capacity of W87 & DBN GSCMI 2013 Case Competition 4 Data Analysis (Junming Liu) Cost of Good Sold GSCMI 2013 Case Competition 5 Data Analysis (Junming Liu) Turnover Annualize COGS Extreme case of Dallas-SVT GSCMI 2013 Case Competition 6 Data Analysis (Junming Liu) Highlight on DIO Atlanta-SAT April DIO = 1537 days Chicago-SVT May DIO = 3862 days Houston-SVC Feb. DIO = 1052 days GSCMI 2013 Case Competition 7 Data Analysis (Junming Liu) Days of Inventory Outstanding Mean 49.11 days SD = 7.65 days GSCMI 2013 Case Competition 8 Data Analysis (Junming Liu) Trend on COGS (Sales) GSCMI 2013 Case Competition 9 Data Analysis (Junming Liu) High COGS Fluctuation No Pattern on Demand Low Responsiveness to the Change of Demand GSCMI 2013 Case Competition 10 Data Analysis (Junming Liu) Overall Trend GSCMI 2013 Case Competition 11 Data Analysis (Junming Liu) Premium Ship Percentage Chicago, Dallas, San Francisco: High Percentage GSCMI 2013 Case Competition 12 Data Analysis (Junming Liu) Reasons Distance with Suppliers Demand Varies Local Economy Unemployment New Construction Extreme Case for Dallas-SVC GSCMI 2013 Case Competition 13 Data Analysis (Junming Liu) Percentage of Order by Source GSCMI 2013 Case Competition 14 Data Analysis (Junming Liu) Los Angeles (Best Case) 1 2 3 1. 2. 3. 4. 5. 6. Order from Closer Sources Average Premium Shipping Percentage Balanced Order Sources Highly Utilization of W87 Highest Purchases High COGS (Demand) 4 GSCMI 2013 Case Competition 15 Data Analysis (Junming Liu) In Addition, Low Capacity of Warehouse GSCMI 2013 Case Competition 16 Proposals (Yu He) We suggest to build a major warehouse to enhance the whole supply chain system. Our Reasons: 1. W87 is relatively useless to Electrical Sector. TOTAL Fayetteville, NC Sumter, SC W34 W87 DBN CDC 22.15% 13.57% 21.95% 3.92% 2.07% 4.15% 2. Electrical Sector has no priority. 3. Relieve W34 and W87’s pressure. 4. Shorten distance of supply to some CMSC sites. 5. Increasing trend of demand in the future. GSCMI 2013 Case Competition 17 Proposals (Yu He) Adjust three-day rotation ABC Classifications GSCMI 2013 Case Competition 18 Recommendations (Yanjun Chen) Kanban card- It’s time to change! LTL Problem Demand Forecasting Aggregate Planning -- Level strategy Looking for more external suppliers in West Coast GSCMI 2013 Case Competition 19 Summary Problem (Yanjun Chen) Analysis GSCMI 2013 Case Competition Solution 20 Thank you! GSCMI 2013 Case Competition 21