Buckeye Power & Light Co.

Group 5

Today’s Agenda — Introduction of SCOPE consulting — Business Overview — Introduction of POW

— Analysis Ø Immediate Planning Ø Vendor Supply Ø Price Sensitivity Ø Long-­‐Term Contracts — How POW works

— Conclusion

SCOPE Consul4ng Team, LLM — Collaborative consulting

team — Specialize in the coal industry

— Proven track record -­‐ i.e. Powell Products case of helping companies identify procurement plans that will be the most cost effective and improve efficiency.

Business Overview — Production Fuels Department,

Buckeye Power & Light Company — Don Peters tasked to optimize procurement

— Long-­‐term contracts — Safety-­‐stock levels — Minimizing costs

POW Overview — Procurement

Optimization Wizard for Buckeye Power & Light Company

— Customized application

Immediate Planning — Based on assumptions given from Buckeye Power and

Light Company: — The lowest cost procurement plan is:

25,240 total tons shipped to Athens

32,721 total tons shipped to Steubenville

20,228 total tons shipped to Zanesville — This amounts to a total cost of $3,165,119.70

Price Sensi4vity