Downtown Bearden Sokno Powell Cost per Delivery To/From Staging Facility Brewery $5 Staging Facility Far West $5 $1 $2 $2.5 $5.5 $4.25 $2 $3 $6 $3 Sokno Forecasted Demand Retail Area Downtown # of Deliveries 6,100 Bearden 7,200 Far West 3,500 Powell 2,200 5,500 1. What is the estimated cost of the minimum cost logistics network? 2. How many deliveries would you make from the brewery to the downtown area in this network? 3. How many deliveries would you make from the staging facility to the downtown area in this network? 4. How much would the cost to deliver a product from the staging facility to downtown need to increase before your optimal solution would change? 5. How much would adding 1 case of storage capacity at the brewery decrease cost? 6. What retail area is the least expensive to serve in the optimal network? 98 began delivery operations from the new Staging Facility using many rental vans. Every time a shipment had to go out to a customer they had to pay for a separate van to deliver it. Every time a retailer had a case of empties to pick up they to pay for a separate van to pick it up. The SCM 309 class told them this was crazy, they were taking way too much time and wasting way too much money by not figuring out how to manage transportation more productively. They brought up the notion of "consolidating shipments" onto less transportation assets. Lance mentioned that he could buy a couple of old vans from one of his old buddies from Morrisville who ran the local Chevy dealership. Using the shipping data below that shows both outbound shipments of cans as well as inbound movements of empty cans, identify ONE example of each of the consolidation opportunities in questions 7-9. In each case, also identify the order(s) in which you would make each delivery or pick up. 7. Multi-drop off of finished goods 8. Multi-pick up of empty cans 9. Outbound finished goods + inbound empty can shipment consolidation NOTE 1: the van can hold up to 80 cases in one load NOTE 2: make sure that you route the van so that you can unload in the correct order - if you route incorrectly you will have to offload a whole lot of cases to get to the order you need, so you will have to load according to the order of stops on the route. And you don't want the van to drive back and forth around the county, so make sure you route in a way that takes a nice roundtrip through the market area. OUTBOUND FULL CANS FROM THE NEW STAGING FACILITY Case Count Ship Date 15 4/13 INBOUND EMPTY CANS BACK TO THE NEW STAGING FACILITY Case Available count PickUpDate 12 4/14 Deliver by date 4/15 13 4/12 25 4/14 4/16 19 4/13 10 4/12 4/14 4/16 25 4/13 30 4/14 10 4/12 Dest. City Hardin Valley Bearden East Knox Farragut Bearden Gay St Karns Bearden Powell The Strip 50 4/12 Origin City Downtown Karns Hardin Valley The Strip Farragut Powell Gay St Bearden East Knox Bearden 4/14 8 4/14 10 4/13 4/15 20 4/12 80 4/13 40 4/14 80 4/12 4/15 4/14 416 15 4/13 16 4/14 6 4/14 20 4/13 4/15 10. Let's also think about operations in the new Staging Facility. Describe some characteristics of how we would operate this facility, including: a) Who should own and operate the facility (98 or a 3rd party) b) Should the facility be a large storage facility, or more like a cross dock? Explain your answer. c) Briefly describe some thoughts about how you would store product in the facility and pick it to fill customer orders