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Sustainable Growth through Network Optimization

Sustainable Growth through Network Optimization. Team 6 Dongfang Wu Yosuke Komori Meng-i Chou Tatsuki Ibuki. Presenter: Dongfang Wu. Agenda. Root Cause Analysis Improvement Goal Short-term Operation Long-term Operation Summary. Presenter: Dongfang Wu. Middle West Region.

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Sustainable Growth through Network Optimization

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  1. Sustainable Growth through Network Optimization Team 6 Dongfang Wu Yosuke Komori Meng-i Chou Tatsuki Ibuki

  2. Presenter: Dongfang Wu Agenda • Root Cause Analysis • Improvement Goal • Short-term Operation • Long-term Operation • Summary

  3. Presenter: Dongfang Wu Middle West Region West Coast East Coast South Region

  4. Presenter: Dongfang Wu Root Cause Analysis • Performance Evaluation • Operation Comparison Between CMSC in West and East. Using assumed lead time for calculation.

  5. Presenter: Dongfang Wu • Product Shortage Analysis 18.3% 28% 72%

  6. Presenter: Dongfang Wu Order by Source Analysis

  7. Presenter: Dongfang Wu Improvement Goal • For Short-term Operation • CMSCs in West maintains the same inventory management level as in East. • For Long-term Operation • To ensure a sustainable growth. Using assumed lead time for calculation.

  8. Presenter: Meng-I Chou Short-term Operation Postponement of Differentiation • Highly modular design • Generic product manufacturing in plant • Reduce uncertainties

  9. Presenter: Meng-I Chou Milk Run

  10. Presenter: Meng-I Chou Renting a Warehouse • Reduce lead time • Increase flexibility of LA and SF • Fulfill customers demand

  11. Presenter: TatsukiIbuki Long-term Operation • Build small warehouses such as DBN • Decrease shipping cost • Improve daily lead time between CMSCs and warehouses • Establish CMSCs near new small warehouses • Expand market • Improve customers’ response time

  12. Presenter: TatsukiIbuki Target Cities for New Warehouse New Jersey Chicago Salt Lake City

  13. Presenter: TatsukiIbuki Benefits of New Small Warehouses Shipping Cost Lead Time Salt Lake City New Jersey Chicago W87 W34

  14. Presenter: TatsukiIbuki Benefits of New CMSCs Minneapolis Salt Lake City New Jersey Chicago Kansas City W87 Albuquerque W34 Memphis New Orleans New CMSCs

  15. Presenter: Yosuke Komori Summary • Short-term Operation • Postponement of Differentiation • Milk-run • Forecast Improvement • Ordering System Revaluation (Kanban) • Long-term Operation • New Warehouses • Location • Salt Lake City • Chicago • New Jersey • Lower Shipping Cost • Shorter Lead Time • New CMSCs • Information System

  16. Thank you!

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