Supply Chain

1281 Words6 Pages
Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also…show more content…
According our estimation from day 640 to 730, we had the mean 14.098 drums. Hence, we set the capacity number to 15 and let the production non-stop by adjusting higher order number and 200 quantity per truck. Let’s summary our work as the following: Our process: figure out whether we should build factory and warehouse in specific region. estimate the demand of four region and Fargo region, change capacity, adjust order point, quantity, and priority order, check and adjust parameters from time to time * When supply > demand, level strategy. * When demand > supply, ‘best way to sell’ instead of ‘fast way to sell’ Lower cost all the time: * No mail transportation in bound all the time * Full truck all the time * Use minimum fulfillment cost, $150, all the time * Isolate Fardo region As in part one of the Supply Chain Game, we were given the option to use trucks as a shipping method. This method can make or break your bottom line because it is an expensive option if you are not utilizing it properly. The cost of using this shipping method is still $15,000 whether the truck is in full or partial methods. The importance of running this part of the operation to perfection is in the numbers. A truck that leaves at half capacity (100 drums) is only generating $145,000 on that run, whereas a full truck would yield

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