SCM Globe assignment: Learning Summary

Read: SCM Globe User Manual and summary of Cincinnati Seasonings model

Log into SCM Globe and load Cincinnati Seasoning. For each step save it as Cincinnati Step 1, 2, 3, and etc…

STEP 1

• •  SCM Globe: Improve existing supply chain

• • • View videos and review user manual on how to run simulations and analyze results

• • • On page 15 of the User Manual read the first case study titled “Cincinnati Seasonings Supply Chain”

• • • Import the Cincinnati Seasonings case study from the SCM Globe library into your account; then click edit to load that case study and start working with it

• • • Simulate operation of the Cincinnati Seasonings supply chain and notice where it breaks; it will run for a few days and then a supply chain problem occurs

• • • Analyze the data generated by the simulation and start making changes to the supply chain design so as to fix the problems revealed in the simulation

• • • How to edit supply chain objects (products, facilities, vehicles, routes) to fix supply chain problems

• • Objective – get existing supply chain to run without breaking for 20 – 30 days

SCM Globe: Impact of manufacturing facility location change upon the network

Answer the below questions

• What were the most common problems that occurred in your simulations and how did you respond to fix them?
• What are some of the relationships you see between the four supply chain objects (products, facilities, vehicles and routes)?
• Observe how to create new supply chain objects (products, facilities, vehicles, routes) to expand supply chain operations

STEP 2

o   Begin with the network you ended with and change the factory location to Lexington, Kentucky.

o

Answer the below question

• What was the impact upon vehicle transit times, inventory levels, and transportation costs?

STEP 3

SCM Globe: decrease inventory costs in supply chain: Run the simulation and fix the issues as the populate

• • • See where inventory builds up and runs out during simulations and adjust delivery schedules as needed

• • • Adjust delivery schedules to avoid buildup of excess inventory or running out of inventory at the stores

• • • Synchronize factory production rate with level of product demand

• • Objective – lower supply chain inventory costs and still get simulation to run without breaking for 20 – 30 days

ANSWER THE BELOW QUESTIONS

What is the cost and amount of inventory that has built up in the supply chain?

• In addition to inventory, what are other sources of cost in supply chain operations?

• How to create new instances of the four supply chain objects to expand the supply chain.( products, facilities, vehicles, and routes)

STEP 4

SCM Globe: decrease transportation costs

• • • Experiment with multi-drop routes where one truck delivers products to two or more stores instead of just a single facility (need operating cost per kilometer for trucks)

• • • Experiment with just-in-time delivery; synchronize delivery schedules to meet demand at stores

• • Objective – get supply chain to run 20 – 30 days at lowest transportation costs as well as lowest inventory levels

STEP 5

SCM Globe: Expand supply chain operations

Load the “Cincinnati Seasonings” case study and:

• • • Add two stores – Chicago and Columbus –define demand, storage and operating costs for those stores (need operating cost per square meter for stores, warehouse and factory)

• • • Add more vehicles and routes to service these stores

• • • See what happens in the simulations as you try different vehicle and route combinations, particularly the impact upon in-transit inventory and stocking at retail stores

• • Objective – get expanded supply chain to run without breaking for 20 – 30 days

• • Participate in conference discussions and results for the Cincinnati Seasonings assignment 2-3 sentences on what happened during simulation

STEP 6

SCM Globe: fine tune supply chain design to get lowest total cost

• • • Less on-hand inventory requires less storage space – experiment with smaller storage space to reduce operating costs (need operating cost per square meter for factory, warehouse, stores)

• • • Do different facility operating costs make it advisable to shrink storage capacity in some facilities and expand it in others? Explore these options to see what works.

Objective – get supply chain to run 20 – 30 days at lowest overall costs in inventory, transportation and facility operation

• • Participate in conference discussions for previous step results for the Cincinnati Seasonings. This may be adjusted to a specific question will message if it changes

STEP 7

SCM Globe: expanding supply chains to support company growth

• • • Add new stores – St. Louis , Kansas City, Des Moines – and design warehouse  and factory facilities and routes to support them. Look at the effects of longer delivery routes from original warehouse in Cincinnati

• • • Experiment with adding a new warehouse and increasing factory production to support store deliveries. Look for a logical central location for warehouse to support the new stores

• • Objective – find the best way to support the growth of Cincinnati Seasonings by designing an expanded supply chain that runs for 20 – 30 days

Three stores were added during STEP 7 assignment, at St. Louis , Kansas City, and Des Moines. Please compare the effects of longer delivery routes from original warehouse in Cincinnati versus a warehouse location that you selected to support these additional retail locations.