Team Name: Oriental Dragon Jingru Kang Shu Wang Zheng Xia Yazhou Liu

1. Team Name: Oriental Dragon Jingru Kang Shu Wang Zheng Xia Yazhou Liu

2. Agenda(Shu) Problem statement Recommendation Alternative options Assumptions Analysis Potential influence Conclusion Q&A

3. Problem Statement(Shu) • How to optimize the network efficiency • long term: continuous growth • short term: west coast performance improvement

4. Recommendation(Shu) • To build another major warehouse at the west coast.

5. Alternative options(Yazhou) • To create one or more new CMSC sites • -lower logistic cost • -higher responsiveness • To extend the plant storage of CMSCs. • Shorten distance supply • Relieve the pressure on existing warehouse • To outsource products from external suppliers. • Get the lower bid price • Flexible production range

6. Assumptions(Yazhou) • Economic environment keeps unchanged • No political or military conflict • The electrical utility industry maintains a stable growth • Eaton will not suffer any financial distress

7. Analysis(Yazhou) Left column: purchased order from W87 and CDC&DBN Right column: subtracted from W34 Conclusion: Due to stock out of W87, CMSCs in west coast spend a large amount of money purchasing order from W87. Building a new major warehouse in west coast, these expenses could be less.

8. Analysis(Zheng) • Major orders come from CMSCs in west coast and south region.

9. Potential influence(Zheng) • Pros • Shipping cost reduce(CMSCs) • Decrease the back order from CMSCs • Improve the customers loyalty and good will • Cons • High budget at the beginning • New operation plan on west coast and south region(labor, R&D, construction)

10. Conclusion(Zheng) • Problem: How to optimize the network efficiency long term: continuous growth short term: west coast performance improvement • Recommendation: To build another major warehouse at the west coast.

11. Q&A?

12. Thank you!