Case 2
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School
University of Southern Indiana *
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Course
661
Subject
Industrial Engineering
Date
Apr 3, 2024
Type
docx
Pages
2
Uploaded by ajmeissner
a)
What is the main objective and challenge that Marico is facing and what components should be considered?
Marico's main goal is to optimize the location of its warehouse and minimize transportation costs. The challenge for Marico is to determine the most profitable location for the warehouse, taking into account various components such as proximity to production facilities, transportation routes, labor costs and taxes. The company also aims to improve delivery times and increase customer satisfaction. To
achieve these goals, Marico must consider several components such as: B. Transportation costs, storage costs, labor costs, taxes and proximity to production facilities.
b)
What steps should be followed for warehouse optimization, considering the factors that impact warehousing and transportation,
and how should the various components be represented mathematically to identify and optimal warehouse location?
To optimize the warehouse location, Marico should follow the following steps:
1.
Collect data: Collect data on transportation costs, inventory costs, labor costs, taxes, and proximity to manufacturing facilities.
2.
Determine the weight of each factor: Assign a weight to each factor based on its importance in the decision-making process.
3.
Identify potential warehouse locations: Identify potential warehouse locations that meet the criteria.
4.
Develop a mathematical model: Represent the various components mathematically to determine the optimal storage location.
5.
Evaluate potential warehouse locations: Evaluate potential warehouse locations using the mathematical model.
6.
Choose the optimal warehouse location: Choose the warehouse location that minimizes transportation costs, storage costs and labor costs while maximizing customer satisfaction.
c)
What problems is Arun facing and what approach is he taking to mitigate them?
Arun faces several problems, including determining the most profitable location for the warehouse, analyzing transportation costs, and selecting the best transportation
routes. To mitigate these issues, Arun takes a data-driven approach and uses a mathematical model to analyze various factors such as transportation costs, labor costs, taxes and proximity to manufacturing facilities. In addition, a geographic information system (GIS) is used to visualize transportation routes and determine the best transportation routes.
d)
What is the best way to identify an initial set of candidates for warehouse locations?
The best way to identify an initial group of warehouse location candidates is to use a GIS to map potential locations and filter them based on criteria. Potential locations
can also be identified by analyzing transportation costs, labor costs, taxes, and proximity to manufacturing facilities.
e)
What steps are involved in selecting a warehouse location and how are the calculations completed in real-time?
The following steps are required to select the storage location:
1.
Identify possible storage locations.
2.
Collect data on transportation costs, labor costs, taxes, and proximity to manufacturing sites.
3.
Develop a mathematical model to represent the various components.
4.
Evaluate potential storage locations using the mathematical model.
5.
Choose the optimal warehouse location that minimizes transportation costs, labor costs and taxes while maximizing customer satisfaction.
6.
Calculations are performed in real time using a mathematical model that takes into account various factors such as transportation costs, labor costs, taxes and proximity to production facilities
f)
What should be Aurun’s final recommendation and what factors should he consider?
Arun's final recommendation should consider several factors such as transportation costs, labor costs, taxes and proximity to production facilities. You should recommend a warehouse location that minimizes transportation costs, labor costs, and taxes while maximizing customer satisfaction. The recommended storage location should also be near production facilities to reduce transportation costs and shorten delivery times. Arun should also consider the scalability of the warehouse location and its ability to adapt to future growth.
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