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For Part 2 , you will use the clean Shipping History data set ( provided following completion of Part 1 ) to ( a )
For Part you will use the clean Shipping History data set provided following completion of Part to a develop a baseline model and b produce an optimized model using the DCs This includes applying transportation and operations costs to the current data set baseline ensuring each order is assigned to the most appropriate DC ie the DC associated with the lowest total combined logistics cost and ensuring each order meets or exceeds the day delivery goal optimized The baseline provides a starting point from which to make your comparisons when designing a new supply chain solution in Part
There are three types of costs to be considered:
Transportation Cost the freight cost for the shipment based on the Zone, Weight, and Service Type. These elements are used to determine the freight cost found in the Rate Tables
Operations Cost the cost to pick, pack, and hand the order over to the carrier. This cost is based on a standard charge per order associated with the origin location ie where the order was shipped from This cost is found in the DC and Store Locations file.
Combined Logistics Cost the sum of Transportation and Operations costs.
The deliverable for Part should include the following analyses:
a Create a Baseline Distribution Model Show the current transportation, operations, and combined logistics costs for the existing network of distribution centers DCs based on the origin location and Service Type shown in the Shipping History file.
Assume the Rate Sheets provided have had all fees, surcharges, and negotiated discounts applied.
b Create an Optimized Distribution Model Show the transportation, operations, and combined logistics costs for the existing network of distributjon centers DCs after ensuring each order is assigned to the most appropriate DQ and Service Type. Simply put, you need to determine the
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