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Modeling a Conversion of Suppliers from Prepaid to Collect (P2C) System

Modeling a Conversion of Suppliers from Prepaid to Collect (P2C) System Project # UA10 – Sam’s Club. Project Team Principal Investigator Dr. Sarah Root (PI) Co-Principal Investigator Dr. Russell Meller Graduate Assistant Prabuddha Lohani. Project Motivation Sam’s Club

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Modeling a Conversion of Suppliers from Prepaid to Collect (P2C) System

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  1. Modeling a Conversion of Suppliers from Prepaid to Collect (P2C) System Project # UA10 – Sam’s Club Project Team Principal Investigator Dr. Sarah Root (PI) Co-Principal Investigator Dr. Russell Meller Graduate Assistant Prabuddha Lohani Project Motivation • Sam’s Club • A division of Wal-Mart Stores, Inc. serving as a membership only retail warehouse club • Nearly 600 locations in US • P2C Conversion • Identify opportunities to reduce costs by moving to collect terms • Quantitative tradeoff between different level of service and the cost is unknown Project Objectives • Develop a model to estimate baseline inbound transportation cost increases as a result of P2C conversion • Help in prioritizing the suppliers converting from prepaid to collect • Construct a model to estimate the effect of MABD on transportation cost • Validation of model, working toward a larger implementation Project Activities • Data Collection and Analysis • Formulation of Strategy • Mathematical Modeling of Operational Problems • Sensitivity Analysis • Documentation

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