LCDR Vikas Jasuja USN Capt. Roque Graciani USMC

1. TOP ONES 26 LCDR VikasJasuja USN Capt. RoqueGraciani USMC

2. Overview PURPOSE: Analyze Logistical Network of Top Ones 26 • Background of Top Ones 26 • Display abstract, specifically arcs, nodes • Incorporate cost analysis into the model • Model (GAMS) formulation • Management philosophy 1 – assume ownership’s primary goal is profit • Management philosophy 2 – ensure all products are stocked • Conclusions • Further Work

3. What is Top Ones 26? Founding Principles: • Mission Statement: per Jamal Sampson “is to create an establishment satisfy the customer’s desire of alcoholic beverages of the highest quality, including micro-brews, craft beers, fine wines, and spirits produced in the United States of America and Canada” • Is a bar for those who “know their drinks”, i.e beer, wine, and whiskey connoisseurs. Not a cookie cutter establishment! • Variety is key , i.e. while Napa Valley is a power player in the wine industry only one wine will be represented at a time.

4. Beer Selection

6. Brewery Locations BREWERIES

8. Winery Locations

10. Distilleries

11. Top Ones 26 Bartenders

12. Top Ones 26 Bartenders

13. Top One’s 26 Bars

14. Top One’s 26 Bar Locations

15. Warehouse Locations

16. Top Ones 26 Logistical Means

17. Network Model Flow

18. Connecting Nodes and Edges

19. Shipping Lanes Example Sam Adams Brewery Dallas Warehouse Dallas Bar

20. Model Assumptions -Bars only have capacity for 26 shipments. -Trucks have 22 pallets of product capacity. -Prices for like commodities are equal. -Vendors are off limits to network attacks. -Transportation costs are constant. -60 cases of beer per pallet. -48 cases of wine per pallet. -100 cases of whiskey per pallet.

21. Cost and Profit Breakdown

22. Management Philosophy 1 -Unprotected network, no safe havens. -Using negative costs to drive model. -Profit first approach. -Attack and let’s see what happens…

23. Possible Attacks LIKELIHOOD

24. Min-Cost Multi-Commodity Flow Max-Profit Best Attacks Stocking Levels Network Insight 26 Commodities 62 Nodes 2133 Edges Costs Capacities Revenue Streams GAMS/CPLEX

25. Gams Implementation of Model Cost from Vendor Sam Adams to Warehouse Profit made through warehouse supply chain Cost from purchasing straight from vendor Profit from purchasing straight from vendor Cost of transporting supplies to another Warehouse

26. Map of Attack Pattern

27. Map of Attack Pattern

28. Resilience Curves

29. One Year Later…

30. Management Philosophy 2 • TOP ONES 26 is looking into the previous years analysis. • Ownership is NOT concerned about profit, only reputation. Willing to spend exorbitant amounts of cash to ship material directly from vendors to the bar.

31. The “Al Capone” Solution Armored Trucks at a bare minimum expense of $120,000!

32. Assumptions/Set-Up • Is a traditional Supply and Demand Model – demand values are negative for vendors, positive for bars. • With armored trucks, arcs between vendors and bars are considered to be “off limits” to interdiction. • Ownership invests in Armored trucks, at $120,000 a piece. Estimate that over a one year span, will cost $5 per mile to run routes.

33. 1 Attacks • Attack arc from Warehouse Texas to Bar Los Angeles, reduced profit of $142K

34. 2 Attacks • Attack arcs from Warehouse Texas to Bar Los Angeles and Bar Las Vegas • Reduction in profit of $266K

35. 3 Attacks • Attack arcs from all three warehouses to Los Angeles, • Reduction in profit of $1.62M

36. 4 Attacks • Attack arcs from Bar Las Vegas to all three warehouses. • Attack arc from Bar Los Angeles to Warehouse Texas • Reduction in profit of $1.74M

37. 5 Attacks • Attack arc from Bar Los Angeles to Warehouse Georgia • Attack arc from Bar Las Vegas to Warehouse Texas • Attack arcs from Bar Tampa to all three warehouses • Reduction in profit of $1.90M

38. 6 Attacks • Attack arcs from Bar Los Angeles to all three warehouses. • Attack arcs from Bar Las Vegas to all three warehouses. • Reduction in profit of $3.22M

39. Operator Resilience Curve Recognizable pattern emerges – dramatic increases in costs every third attack followed by a period of nearly cost increases in cost.

40. Further Work/Conclusion • Allow bars to trade merchandise. Will dramatically increase robustness of network. • Determine optimal location of Warehouses, as current location was selected arbitrarily. Are more needed? Less? • Create back up stores of material

41. Questions I don’t always surf the web, but when I do I go to neddimitrov.org/

42. Back-up Slides

43. Multi-Commodity Flow Formulation

44. Resilience Curves

45. Gams Implementation of Model Cost from Vendor Sam Adams to Warehouse Profit made through warehouse supply chain Cost from purchasing straight from vendor Profit from purchasing straight from vendor Cost of transporting supplies to another Warehouse