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1 Background
In this assessment, we will work on a company called MaveriCo, which has been operating across different cities around the world. The management team is planning to expand to the Kingdom of Square, a new market they recently identified. MaveriCo relied on a key component provider, Kii Supplies, for its production. In order to expand to the new market, MaveriCo has negotiated with Kii Supplies to set up a warehouse in the Kingdom of Square. MaveriCo also decides to set up assembly facilities in the Kingdom of Square to quickly respond to customers.
You were assigned for this project as the supply chain manager of MaveriCo! You will need to design a proper supply network to support MaveriCo’s operations in the Kingdom of Square.
2 Data Collection
To start with the project, you requested some data from MaveriCo. MaveriCo believes that the demand might be related to a city’s population, or relates to the number of years it stayed in the city, or both. Based on this assumption, they provided some data shown in Table 1 for the demand information across a number of cities.
Apparently, you want to check whether MaveriCo’s assumption is correct and use your findings to figure out the potential demands for the cities in the Kingdom of Square. Table 2 presents the name, population, and the coordinates for each city. The distance between any two cities can be assumed to be the Euclidean distance with a circuity factor kCF of 1.30.
Your also checked with Kii Supplies about its preferred location for the warehouse. Kii Supplies agreed to set up its warehouse based on the last digit of your student number as shown in Table 2. For example, if the last digit of your student number is ‘5’, Kii Supplies will set up its warehouse in Edofield. Kii Supplies also recommended a transport company. (Use JEMORE (0))
that could manage the inbound and outbound logistics for you. The quoted transport price is $0.005/component/unit distance travelled for inbound logistics (i.e., from Kii Supplies to your assembly facilities), and $0.01/product/unit distance travelled for outbound logistics (i.e., from your assembly facilities to the cities).
To set up an assembly facility, it will cost you $100,000 per facility. You will need to take this into consideration when you choose your assembly sites and design your distribution network. To facilitate your work, you were advised to focus on the first year for the operations in the Kingdom of Square. Each component received from Kii Supplies will be assembled into one finished product.
3 The Task
You believe by now you have got all the required data and you are ready to start. Your task will need you to use the knowledge acquired in this course, explain the rationale behind your chosen approaches, document your analysis, and present your results to the management team of MaveriCo.
The following list offers some ideas for you to think further (remember this is not an exhaustive list):
- What will the demand look like for each city for the year to come? 2
- What determines the fixed cost for the assembly facilities?
- Use (Use JEMORE (0)) to find the warehouse for Kii Supplies. What will determine how many units you transport to each assembly facility?
- In which cities should you set up the assembly facilities?
- Which cities should be served by which assembly facility?
- Build different scenarios (in terms of number of assembly facilities) and discuss the trade-offs to be considered. For example, what will be the maximum distance you need to travel from an assembly facility to a city? Based on these trade-offs, recommend your final network design structure.
You should build models for this project in an Excel spreadsheet, which will need to be submitted as part of this assessment item. With proper model building, you can complete this project in a stage-wise manner.
Please round demand information to the nearest integer (consider using the ROUND function in Excel) and keep two decimal points for the distances and currencies.
4 Structure for Report
The report, which should be around 2,500 words (+/- 10%), should clearly discuss the findings based on the modelling of the supply chain to be designed. The following is a suggested structure for the report, with approximate suggested word count for each section. Remember this is not a definitive structure for the course, but just a suggestion.
- Introduction/Background. (200 to 400 words). Covers the background of the project at hand and builds towards explaining the relevance and context of the project to be solved.
- Approach and Rationale. (400 to 600 words). A brief coverage of how you intend to solve the project and why you choose these approaches to solve it.
- Presentation and Analysis of Results. (600 to 1,000 words). This is the place to present your results and analyse what these results are telling you from a supply chain perspective. You may want to effectively use tables and figures (and other means) in this part. If you do so, do not forget to explain the tables/figures/etc in the text.
- (500 to 700 words). This is where you discuss what you have found and relate it back to supply chain modelling in general. For example, what could possibly be the case if the parameters are changed slightly (e.g., due to inaccurate estimation of assembly site fixed cost)? What challenges would you envisage for supply chain modelling tasks like this project?
- (200 to 400 words). What conclusions can you draw from what you have found out, both from the project and from the techniques used to solve the project?
- References – They should be formatted correctly and consistently – APA 7.
- Excel spreadsheet.
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