SUP-3033 Supply Chain Technology

DATE: 12 feb-2018
INSTRUCTOR: JENNIFER DZHANG
CLASS: 2018W SUP 3033 (B126)
GROUP: 3

STUDENT FIRST STUDENT LAST

STUDENT ID MEMBER IN CLASS
NAME NAME
NUMBER NUMBER PRESENCE
(IN CAPITAL) (IN CAPITAL)

HARKIRAT SINGH C0694120 1 YES

MANDEEP SINGH C0694871 2 YES

KIRANDEEP SINGH C0693597 3 YES

VINAY KUMAR CHERBROLU C0694591 4 YES

ANNA VALIAVEETTIL C0700314 5 YES

SUMIT TANDON C0699019 6 YES

Case study – Marks Supply Chain Technology

Actual baseline
The actual baseline model is a representation of the current supply chain and how it
operated in the past. This is an important first step in the network modeling process
because this helps validate that the network model accurately represents the supply
chain and its flows. On the off chance that you have a current transportation
organize, one of your first assignments is to make a Baseline model of that
information. When you see how your present course structure functions, you can
dispense with your present course and stop succession structure to decide how
transportation courses are streamlined.

Optimal baseline
After the baseline display is approved, it is vital to run the advanced pattern
scenario(s). This speaks to the present system and its areas yet demonstrates the
effect if everything occurred by the present business rules. There can be a few
varieties of the upgraded standard, incorporating those in which a portion of the
principles are casual (e.g., client assignments to particular stockrooms).
• It shows the potential improvement opportunities within the current supply chain
without having to make major infrastructure changes.
• It also provides a good basis for comparing what-if scenarios— because this
scenario includes optimized outputs, it serves as a good apples-to-apples
comparison with optimized outputs from what-if scenarios.

LINK THE BASELINE WITH THE GIVEN CASE

A well-designed and well-developed baseline and optimized baseline model serves

as a strong foundation for development and running of what-if scenarios.
This is a great example of expanding the idea of the optimized baseline in network
design. When you build a network design model, you often start with a baseline
model. The baseline model represents how your network performed last year. You use
it to validate the costs from the model with your actual costs.

Since the baseline represents, history, that model also shows all the out-of-territory and
unplanned shipments—it shows your shipments from the Riverside to the Bridgewater
even though you have a warehouse in Bridgewater. You need to do this to validate the
costs.

The next model you should run is your optimized baseline. In this model, you construct
the model to run so that it follows all the rules that should have been in place. That is,
this model will clean up the Riverside to Bridgewater shipments. This model becomes
your new starting point—you want to compare optimal solutions to this so you get a fair
estimate of savings potential.

But, the optimized baseline also tells you something that the team was getting at—
where should you look for savings. This model tells you how much you could save if
you shipped everything as planned. Sometimes the root cause of this problem is not
having inventory in the right place or not having enough capacity.

The team took this idea a step further—they came up with a nice extension to the idea
of the optimized baseline. They made inquiries like imagine a scenario where each item
could be made all over the place, consider the possibility that each part was transported
as though it were on a full truck, and imagine a scenario where everything went on the
ground. What's more, you can likely consider different illustrations. When you run these
models, you can get a feeling of the potential funds.

I always like this type of analysis, because it can save you a lot of time in deciding what
to do. You can endlessly debate on the pro’s and con’s of convincing your customers to
only order in full truckloads

As I talk about the results and data representation from the given case, it is assumed that
rather applying a flat cost to all network it’s a better option to divide the region on some basis
and apply the cost on the basis of demand and other factors, and if opening a new
warehouse is best option we must go with that because we have to consider the cost in long
run. Here we pasted the optimal results snapshots.