Distribution Design t Lower Transport Costs and Balance Demand and Availability - Shuzworld (Revision)

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* Decision Analysis Task 2 – Shuzworld (Revision)
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14March 2013

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* DISTRIBUTION DESIGN TO LOWER TRANSPORT COSTS AND BALANCE DEMAND AND AVAILABILITY
I have been mandated with the task of examining the cost that goes into Shuzworld's supply chain. Specifically, the analysis entails an assessment of the expenditure involved in transporting units from three processing plants to the respective warehouses. To determine the least tenable transportation cost and the most effective plan to achieve the anticipated low cost in the company required using a decision analysis tool namely, transportation modeling. The results of the analysis are as follows:
The rationale for using transportation modeling for analysis is because the tool has been proven to be highly effective in determining the least tenable costs for shipment of manufactured products from manufacturing stations to a variety of destinations. The tool measures variables such as available products for transfer from the plants and the respective demand or need for the products in the warehouses. It also attaches a price tag to the transport expenditure required during shipment. The above results indicate that the least tenable monthly cost is thirteen thousand and four hundred dollars.
Apart from projecting the least tenable cost for monthly shipments, the model also provides other related, important information. This includes details such as the exact number of products that require shipping for the company to realize its goal of the least tenable costs. It also takes into account the company's need to negate the demand and availability imbalance in a way that cuts down transportation costs. The results indicate that overproduction in the Shanghai plant resulted into placement of the products in an imaginary warehouse at zero expense in a bid to prevent interference with the cost projections. Release or shipment of the products from the imaginary warehouse may be prompted only through emerging demand. The products would not be transferred from the said warehouse unless the company establishes existing demand for them.
* ANALYZING DEPENDABILITY OF THE PC POWERED MACHINES FOR SHOES IN THE SHANGHAI MANUFACTURING STATION
I have been tasked to examine the PC based machines for shoes in the Shanghai manufacturing plant and determine their ability to withstand a variety of situations as a reliability measure. The reliability model is a useful tool in determining the machines' capacity. The results of the reliability analysis are as follows:
BY ADDING A BACKUP FOR MACHINE, #1OVERALL RELIABILITY WOULD BE .8778OVERALL RELIABILITY WOULD BE .8778
BY ADDING A BACKUP FOR MACHINE #1OVERALL RELIABILITY WOULD BE .8778
BY ADDING A BACKUP FOR MACHINE #3, OVERALL RELIABILITY WOULD BE .7643
The model established the reliability of th...