Module 3 – Case
OPTIMIZING INVENTORY | TRANSPORTATION
Virtual World
EBBD EMAIL for Internal Use Only
To: You
From: Danny Wilco <.com">dwilco@ebbd.com>
Subject: Re: Quarterly Ordering Decisions
Here is what we would like you to do. We want you to use the Import Beer
product line as a test case for developing an optimization program. Use the
Excel file that we have developed with the forecast information for the import
beer product line. Other information that you will need has been provided by
Accounting: inventory holding costs, product costs and price markups.
This information with the Sales Forecast and costs and prices has been
provided in the Excel file. [.trident.edu/content/enforced/42058-LOG501-NOV2014-1/Modules/Module3/EBBD%20Imports%20Data.xlsx?_&d2lSessionVal=S7Ei9CJR4cO01X1PUCPBjDabi&ou=42058″>EBBD-ImportsData]
We want you to develop a method that will determine the optimal ordering
quantities so that we maximize the gross profits and also take into account
inventory holding costs.
After you have developed this method, write a short report to management
explaining what you did and how this method can be used going forward
on a quarter by quarter basis and for the other product lines.
Also attach any calculations or analysis that you did in an Excel file.
Let me know if you have any questions.
~DW, VP LogOps.
Learning Wizard
If you have done all of the exercises successfully you should be able to
easily complete the EBBD assignment from Wilco. Be sure to watch the
videos.
Download the EBBD-ImportsData Excel (click on link
above) file and look at how it compares to the practice examples in the EBBD
Exercises spreadsheet.
Setup the decision cells, the inventory cells and inventory constraints.
Then add the calculations for income and costs. Make sure you get the timing
right for which inventory is sold in which quarter. You could develop
intermediate cells that calculate the costs, just to help you keep track of
this. Be sure to use the quarterly inventory holding cost rate. Then calculate
the gross profit cell.
Then, open up Solverand add the aspects to it. Make sure
that you add a constraint that keeps your inventory values positive.
Once you have the correct solution, save your Excel file and write the
report.
Upload the Report to Case 3. Upload the Excel file with the solution to
Additional Files in Module 3.
Assignment Expectations of the
written report – write the report to your boss, Danny Wilco
The report should thoroughly address these aspects in depth and breadth:
Problem situation: clearly elucidate the problem situation at EBBD
Assumptions: what are the assumptions that need to be made and your
critical evaluation
Solution: What is your solution for Order Quantities? Discuss how you
developed the Solver solution. Keep in mind that your audience is not too
technical and do not need a lot of detail on this.
o
Make sure you attach the Excel file.
o
You should refer to the Excel file when necessary.
Recommendations: what do you propose for EBBD in terms of using this
method in the future and for the other product lines?
Justification & Explanation: clear reasoning as to why the
recommendations were made
Writing style & Organization: well-formed sentences and paragraphs,
well organized with flow of reason, and good use of language that pertain to
concepts and terminology
Use of references & citations: References are NOT REQUIRED. If you
do use any, be sure to include appropriate use of citations in the paper and
reference list.
Module 3 – SLP
OPTIMIZING INVENTORY | TRANSPORTATION
SLP 3 – Transportation in the Supply
Chain
In this SLP you will identify where the major transportation modes are
used in the EESC from SLP3: rail, inland water, ocean steamer, and/or OTR.
There are five basic transportation modes: rail, inland water ways,
ocean, over-the-road, and air. We will not be concerned about air transport in
this SLP as it is the least used and most expensive in general supply chain
transportation.
Review and read these resources on these three transportation modes:
rail, inland water, and OTR. Ocean is not included in these readings since it
is mainly used for importing and exporting. This will be covered in more detail
in LOG502. But you are asked to identify where ocean transport is used, but not
in detail.
RESOURCES – SEE SLP 3 RESOURCES IN BACKGROUND PAGE
Session Long Project
Review the EESC from SLP2. Identify in the EESC where each of the four
modes of transportation are used: rail, inland water, ocean, and OTR. You can
use topic headings for each mode. Identify the materials being transported from
which industry to which industry. Discuss why this mode is being used and what
the costs are on a per ton-mile basis.
SLP Assignment Expectations
The paper should include:
Background: Briefly review and discuss the targeted
product, company, and industry
Diagram: Include the diagram of the EESC
Transportation Discussion: Discuss each of the four transportation modes
(rail, inland water, ocean, OTR) in the EESC and where each one is used.
Discuss why this mode is used and the costs of using.
Clarity and Organization: The paper should be well organized and clearly
discuss the various topics and issues in depth and breadth.
Use of references and citations: at least six (6) proper references
should be used correctly, cited in the text, and listed in the references using
an appropriate style; It is not necessary to use APA format, but it is
suggested that this format be used or another format similar.
Length: The paper should be three to four pages the body of the paper
excluding title page and references page.
NOTE: You can use the transportation resources. You should also do
independent research and find at least two additional appropriate references,
for a total of at least six.Module 3 – CaseOPTIMIZING INVENTORY | TRANSPORTATIONVirtual WorldEBBD EMAIL for Internal Use OnlyTo: YouFrom: Danny Wilco <.com">dwilco@ebbd.com>Subject: Re: Quarterly Ordering DecisionsHere is what we would like you to do. We want you to use the Import Beer
product line as a test case for developing an optimization program. Use the
Excel file that we have developed with the forecast information for the import
beer product line. Other information that you will need has been provided by
Accounting: inventory holding costs, product costs and price markups.This information with the Sales Forecast and costs and prices has been
provided in the Excel file. [.trident.edu/content/enforced/42058-LOG501-NOV2014-1/Modules/Module3/EBBD%20Imports%20Data.xlsx?_&d2lSessionVal=S7Ei9CJR4cO01X1PUCPBjDabi&ou=42058″>EBBD-ImportsData]We want you to develop a method that will determine the optimal ordering
quantities so that we maximize the gross profits and also take into account
inventory holding costs.After you have developed this method, write a short report to management
explaining what you did and how this method can be used going forward
on a quarter by quarter basis and for the other product lines.Also attach any calculations or analysis that you did in an Excel file.Let me know if you have any questions.~DW, VP LogOps.Learning WizardIf you have done all of the exercises successfully you should be able to
easily complete the EBBD assignment from Wilco. Be sure to watch the
videos.Download the EBBD-ImportsData Excel (click on link
above) file and look at how it compares to the practice examples in the EBBD
Exercises spreadsheet.Setup the decision cells, the inventory cells and inventory constraints.
Then add the calculations for income and costs. Make sure you get the timing
right for which inventory is sold in which quarter. You could develop
intermediate cells that calculate the costs, just to help you keep track of
this. Be sure to use the quarterly inventory holding cost rate. Then calculate
the gross profit cell.Then, open up Solverand add the aspects to it. Make sure
that you add a constraint that keeps your inventory values positive.Once you have the correct solution, save your Excel file and write the
report.Upload the Report to Case 3. Upload the Excel file with the solution to
Additional Files in Module 3.Assignment Expectations of the
written report – write the report to your boss, Danny WilcoThe report should thoroughly address these aspects in depth and breadth:
Problem situation: clearly elucidate the problem situation at EBBD
Assumptions: what are the assumptions that need to be made and your
critical evaluation
Solution: What is your solution for Order Quantities? Discuss how you
developed the Solver solution. Keep in mind that your audience is not too
technical and do not need a lot of detail on this.o
Make sure you attach the Excel file.o
You should refer to the Excel file when necessary.
Recommendations: what do you propose for EBBD in terms of using this
method in the future and for the other product lines?
Justification & Explanation: clear reasoning as to why the
recommendations were made
Writing style & Organization: well-formed sentences and paragraphs,
well organized with flow of reason, and good use of language that pertain to
concepts and terminology
Use of references & citations: References are NOT REQUIRED. If you
do use any, be sure to include appropriate use of citations in the paper and
reference list.Module 3 – SLPOPTIMIZING INVENTORY | TRANSPORTATIONSLP 3 – Transportation in the Supply
ChainIn this SLP you will identify where the major transportation modes are
used in the EESC from SLP3: rail, inland water, ocean steamer, and/or OTR.There are five basic transportation modes: rail, inland water ways,
ocean, over-the-road, and air. We will not be concerned about air transport in
this SLP as it is the least used and most expensive in general supply chain
transportation.Review and read these resources on these three transportation modes:
rail, inland water, and OTR. Ocean is not included in these readings since it
is mainly used for importing and exporting. This will be covered in more detail
in LOG502. But you are asked to identify where ocean transport is used, but not
in detail.RESOURCES – SEE SLP 3 RESOURCES IN BACKGROUND PAGESession Long ProjectReview the EESC from SLP2. Identify in the EESC where each of the four
modes of transportation are used: rail, inland water, ocean, and OTR. You can
use topic headings for each mode. Identify the materials being transported from
which industry to which industry. Discuss why this mode is being used and what
the costs are on a per ton-mile basis.SLP Assignment ExpectationsThe paper should include:
Background: Briefly review and discuss the targeted
product, company, and industry
Diagram: Include the diagram of the EESC
Transportation Discussion: Discuss each of the four transportation modes
(rail, inland water, ocean, OTR) in the EESC and where each one is used.
Discuss why this mode is used and the costs of using.
Clarity and Organization: The paper should be well organized and clearly
discuss the various topics and issues in depth and breadth.
Use of references and citations: at least six (6) proper references
should be used correctly, cited in the text, and listed in the references using
an appropriate style; It is not necessary to use APA format, but it is
suggested that this format be used or another format similar.
Length: The paper should be three to four pages the body of the paper
excluding title page and references page.NOTE: You can use the transportation resources. You should also do
independent research and find at least two additional appropriate references,
for a total of at least six.
