My learning journey in Supply Chain Design

My learning journey in supply chain design has been an exciting and insightful experience. At the beginning of the course, I had little knowledge of the complexities involved in designing an efficient supply chain. However, through the weeks of study, I have gained valuable insights into the various components that make up a successful supply chain.

I started by learning about the different types of supply chain networks and their advantages and disadvantages. This allowed me to understand how different supply chain designs can impact a company’s performance. I was able to recognize the importance of selecting the right network design based on the specific needs of a company.

Next, I learned about the importance of demand planning and how it relates to supply chain management. I gained knowledge about the different types of forecasting techniques and how to apply them to supply chain management. I realized that accurate forecasting can be a powerful tool in supply chain design as it can help a company optimize production and minimize costs.

I also learned about the different types of production planning strategies and how they can be used to optimize supply chain performance. I was introduced to the importance of materials management and how it relates to inventory management. I was able to appreciate the significance of managing inventory effectively and the impact it has on a company’s cash flow.

Furthermore, I learned about the importance of logistics and transportation in the supply chain. I was able to review different modes of transportation and their costs and benefits. I learned how to select the right mode of transportation based on the specific needs of a company.

In addition, I learned about the role of warehousing and distribution in the supply chain. I was able to appreciate the importance of selecting the right type of warehouse operations and their key performance indicators. I gained knowledge about different warehouse management strategies and how to optimize them.

Week 1: Introduction to Supply Chain Design

- Introduction to supply chain design and the importance of a well-designed supply chain.
- Learned about the different types of supply chain networks and their advantages and disadvantages.
- Discussed how to select the right supply chain network based on a company’s needs and goals.

I found some problems quite interesting:

Graded Assignment 1: Locky Locke Inc.

You have finally been promoted to Senior Manager for the nuts and bolts category at Locky Locke Inc., a manufacturer with a large demand for bolts at its three (3) factories. You have surveyed the market and found four (4) suppliers for a certain steady selling SKU, ZA27R46. Your factories’ weekly demand for bolts are:

Factory 1: 9,500 cases/week
Factory 2: 6,500 cases/week
Factory 3: 17,000 cases/week

Each of the four suppliers can provide the ZA27R46, but they differ in unit price, weekly capacity, and distance to Locky Locke Inc. three factories. The unit prices and the weekly capacity for each of the four suppliers are shown below:

Supplier 1: U.S. Ainbolt – Unit cost: 2.50 $/case Capacity 9,500 cases/week
Supplier 2: Der Bolt, Thun – Unit cost: 3.20 $/case Capacity 10,000 cases/week
Supplier 3: Li Tningbolt – Unit cost: 1.90 $/case Capacity 7,000 cases/week
Supplier 4: M. Bolton – Unit cost: 2.80 $/case Capacity 9,000 cases/week

You are trying to plan the weekly flow of bolts from these suppliers to your factories. Based on the current contract with your transportation carrier, the unit transportation cost for a case of bolts is $0.05 per mile from any of the suppliers to any of the factories. The distances between the four suppliers and the three factories are given in the table below.

Part 4

You want to discuss the situation with the general manager of Factory 2. How much is the difference between Factory 2’s total landed cost per week in Part 1 compared to the total landed cost per week from Part 3?

Part 5

1.0/1.0 point (graded)

You decide to re-negotiate with Supplier 1 (U.S. Ainbolt) to increase their capacity. They agree to increase it to 14,000 cases per week. How many cases per week does Supplier 1 (U.S. Ainbolt) send to Factory 2 in the new optimal solution?

Input your answer in integers.

Week 2:

- Explored demand planning and forecasting techniques used in supply chain design.
- Learned about the importance of accurate demand planning in supply chain design.
- Discussed different forecasting techniques and how they can be used to make supply chain design decisions.

I found some problems quite interesting:

Graded Assignment 2: Colombian Premium Coffee

A traditional Colombian Coffee manufacturer called CPC has hired your services as a supply chain consultor to analyze the distribution of its brand-new premium product, named Coffee Indeed ®. This product is 1 package containing 1-kilogram of ground and roasted Arabica coffee to be commercialized and distributed in three cities: Bogotá (DC 1), Medellín (DC 2), and Cali (DC 3). Due to governmental tax benefits, the company roasts and packs the product in two factories: Barranquilla (Plant 1) and Santander (Plant 2). CPC hires carriers to transport the products from the plants to each of the three distribution centers (DCs). Each DC has a different demand, and each plant has a different production capacity.

Demand:

- Bogotá: 345,000 units per week
- Medellín: 263,000 units per week
- Cali: 172,000 units per week

Plant Capacities:

- Barranquilla: 610,000 units per week
- Santander: 350,000 units per week

Part 3

You are informed that due to a severe fire in plant 2, some packaging machinery was lost. To keep both plants producing both types of products, the maintenance manager Ms. Tiffany Rivera has redistributed the remaining machinery in both plants. This move enabled both plants with the flexibility of producing both types of products; however, it restricted the production capacities as described below:

Demand:

- Barranquilla (Plant 1) cannot produce more than 300,000 500-grams Coffee Indeed ® (product 2) per week.
- Santander (Plant 2) cannot produce more than 250,000 1-kilogram Coffee Indeed ® (product 1) per week.

Create a linear program that optimizes the flow of each product from plants to DCs while adhering to these new capacity constraints.

Please, consider at all times that total capacities of both plants haven’t changed as described in the problem statement.

Calculate the minimum weekly cost for satisfying the demand of the three DCs. How much more expensive is this solution than the one in Part 2?

Week 3: Inventory Management

- Learned about production planning strategies and how they can be used to optimize supply chain performance.
- Explored the importance of materials management and how it relates to inventory management.
- Discussed how effective inventory management can improve supply chain performance.

I found some problems quite interesting:

Graded Assignment 3: Ivec Company

The Ivec Company distributes one of its products, a van for urban freight transport, through regional warehouses in Buenos Aires and Cordoba. A central warehouse at the Rosario plant distributes the vans to these warehouses in serving the Argentinian market.

Martin Riquelme, the company’s distribution planning manager has been thinking to acquire a DRP system to plan the shipments from the plant warehouse to the regional warehouses. Before committing to his software provider, he asked you to evaluate the results for the next 10 weeks. He has collected the following data:

Plant warehouse:

There are currently (week 0) 1000 units on hand.
The order quantity equals 1000 units.
Safety stock is equal to 50 units.
Lead time to get the van from plant is 2 weeks.

Buenos Aires warehouse:

There are currently (week 0) 650 units on hand.
The shipment order quantity equals 500 units.
Safety stock is equal to 20 units.
Shipment lead time to get the van from plant warehouse is 1 week.

Cordoba warehouse:

There are currently (week 0) 400 units on hand.
The shipment order quantity equals 400 units.
Safety stock is equal to 10 units.
Shipment lead time to get the van from plant warehouse is 1 week.

The table below shows the forecasted units (period usage) for the next 10 weeks.

Part 4

Based on the orders placed from the Buenos Aires and Cordoba warehouses, compute the “period usage” (or forecasted units) for the plant warehouse.

How many units are requested in week 2?

How many units are requested in week 6?

Overall, my learning journey in supply chain design has been an eye-opening experience. I am now equipped with the knowledge and skills necessary to design an efficient and effective supply chain. I am confident that I can apply this knowledge in the real world to help companies optimize their supply chain operations and achieve their business goals.

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