Team SynergyYang Liu
Zhaozhe LiuSongyun Zou
Hongliang Guan
GSCMI 2013 Case Competition 2
Team Synergy Zhaozhe Liu
Zhaozhe Jo Jo Liu
• MSHRM Class of 2014• BBA In Management
and Economics, University of Iowa
Experience• Senior Teacher at New
Oriental Education
Hongliang Guan
• MBA Class of 2015• Ph.D In Power System
and Clear Energy, China Electric Power Research Institute
Experience• Senior Engineer
Songyun Zou
• MSHRM Class of 2014• BBA in Pharmacy,
Southwest universityExperience• Sales Assistant
Yang Liu
• MBA Class of 2015• BS in Electrical
Engineering Experience• Electrical Engineer at
CGNPC
GSCMI 2013 Case Competition 3
Agenda Zhaozhe Liu
Recommendations
Problems and Challenges
Short-term Analysis
Long-term Analysis
Q&A
GSCMI 2013 Case Competition 4
Recommendations Zhaozhe Liu
Long-Term
Build a new CMSC in Midwest
Build a new plant at West
Build CMSCs for power distribution system at every medium to large
cities
Shot-TermBuild a new DBN at LA
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 5
Problems and Challenges Zhaozhe Liu
High transportation cost of west sitesHigh inventory levels of west sites
Sustain high market responsiveness
Highly utilized W34 and W87
Outdated Kanban system
Inefficient order shipment process
Unbalanced distribution of resources
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 6
The Current CMSC Network Zhaozhe Liu
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 7
Short-term Analysis Yang Liu
• LA locates between SF and Phoenix• DBN could satisfy the demand of west
sites• Less investment
Build a new DBNs at LA Why?
DBN Capacity Analysis
CMSC siteCDC & DBN
Atlanta-SAT 1,075,909 Atlanta-SVC 159,859 Baltimore-SAT 531,195 Chicago-SAT 446,670
Total
7,372,108
CDC:DBN=2: 1
DBN=8682, 290/3=2894097
Distance of West Sites
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 8
Short-term Analysis Yang Liu
• Shipping cost control• Minimize the use of premium
flight• Inventory control
• Minimize back-ordered items• Shorten the lead time
• Fast market responsiveness
Benefits
Phoenix-SAT 68,889 Seattle-SAT 139,965 Portland-SVC 84,430 Los Angeles-SAT 207,898 Los Angeles-SVC 106,059 San francisco-SAT 404,803
Total Air Shipping Cost 1,012,045 Recommendat
ions Problems Short-term Analysis
Long-term Analysis
GSCMI 2013 Case Competition 9
Short-term Analysis Hongliang Guan
• Abandon Kanban System • Out of date• High inventory level
• Adapt continuous review model • Forecast demand for by using
exponential model
Inventory Management
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 10
Short-term Analysis Hongliang Guan
Los Angele
s-SAT
Houston-SVC
Dallas
-SAT
Los Angele
s-SVC
Hartford-SVC
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
nowexpecting
Recommendations Problems Short-term
Analysis Long-term Analysis
Inventory Level
GSCMI 2013 Case Competition 11
Short-term Analysis Hongliang Guan
0 5000000 10000000 15000000 20000000 25000000
Average Inventory
Current
Expected
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 12
Short-term Analysis Hongliang Guan
0.9 0.85 0.8 0.75 0.70
50000
100000
150000
200000
250000
Dallas-SATHartford-SVCHouston-SVCLos Angeles-SATLos Angeles-SVC
Sensitivity analysis
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 13
Long-term Analysis Songyun Zou
Build a new CMSC at the Midwest • Increase local market
share• Enhance brand image
Build a new plant at West • Alleviate the
transportation cost • Satisfy the growing
market demand
Build CMSCs for power distribution system at every medium to large cities• Sell and promote the
service and product of power distribution system
Recommendations Problems Short-term
Analysis Long-term Analysis
GSCMI 2013 Case Competition 14
Thank you
GSCMI 2013 Case Competition 15
GSCMI 2013 Case Competition 16
Back-up Slides
CMSC site W34 W87CDC & DBN … Total
Air ship ratio
Los Angeles-SAT
738,339
1,319,9
55 656,567
… 942978.4
62 0.10
Los Angeles-SVC
1,140,5
45
951,751 4,221
… 683453.4
781 0.09
Phoenix-SAT
455,136
511,716 285,405
… 267428.4
969 0.06
Portland-SVC
687,920
367,821 2,052
… 396897.6
581 0.08 San francisco-
SAT
556,394
760,651 374,576
… 1208252.
407 0.24
Seattle-SAT
738,427
571,921 368,240
… 379474.2
942 0.08
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