Transcript Slide 1

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
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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
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Concerns
(Xian Zhu)
 From the Data
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


High Turnover rate of Dallas SVC
The huge monthly variation of demand
The frequent usage of premium freight
The limited capacity of W87 & DBN
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Data Analysis (Junming Liu)
 Cost of Good Sold
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Data Analysis (Junming Liu)
 Turnover
 Annualize COGS
Extreme case of Dallas-SVT
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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
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Data Analysis (Junming Liu)
 Days of Inventory Outstanding
Mean 49.11 days
SD = 7.65 days
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Data Analysis (Junming Liu)
 Trend on COGS (Sales)
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Data Analysis (Junming Liu)
 High COGS
Fluctuation
 No Pattern on
Demand
 Low Responsiveness
to the Change of
Demand
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Data Analysis (Junming Liu)
 Overall Trend
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Data Analysis (Junming Liu)
 Premium Ship Percentage
 Chicago, Dallas, San Francisco: High Percentage
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Data Analysis (Junming Liu)
 Reasons
 Distance with Suppliers
 Demand Varies
 Local Economy
 Unemployment
 New Construction
Extreme Case for
Dallas-SVC
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Data Analysis (Junming Liu)
 Percentage of Order by Source
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Data Analysis (Junming Liu)
 Los Angeles (Best Case)
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Order from Closer Sources
Average Premium Shipping Percentage
Balanced Order Sources
Highly Utilization of W87
Highest Purchases
High COGS (Demand)
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Data Analysis (Junming Liu)
 In Addition, Low Capacity of Warehouse
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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.
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Proposals
(Yu He)
 Adjust three-day rotation
ABC Classifications
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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
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Summary
Problem
(Yanjun Chen)
Analysis
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Solution
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Thank you!
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