case study
Case Study
“TRANSPORTATION AND CONSOLIDATION AT ELEVALT LTD.”
1. Situation analysis
Chris Summers, vice president of the management company to provide oilfield services Elevalt chain, is devoted to an analysis of their distribution centers worldwide (PED). Should evaluate network Elevalt developing countries across Europe, Africa and the Middle East to see if it would be beneficial to strengthen the existing network of six developing countries in one centralized DC in Europe or Africa. Before this decision can be taken, you should first optimize the current operation, which seems to suffer from inefficient management stocks. Inefficient inventory management also appears to be the engine of the additional transport costs. Summers should consider the benefits and risks associated with the consolidation of PED Elevalt maintaining its focus on the needs of customers Elevalt.
Operation process: Oil and gas extraction process
EVT’s customer received permission from relevant government agency to drill for oil or gas.
EVT then offer exploration to conduct geological surveys and assessments (use seismic waves).
If customers decide to extract oil or gas in specific region, EVT will perform drilling phase to drill into a specific ground using data gathered in exploration phase.
After drilling, EVT start to build out the infrastructure to bring oil and gas safely out of the ground and distribution system. This phase is called completion.
The last phase - production is to extract the oil or gas from the ground and transport to refinery. EVT’s customers (Petroleum companies) then refine the
2. Assumptions and missing information relating to operations
Assumption:
Summers’s team surmised that the EAME region was the dominant contributor to the disparity between inventory, total supply chain costs, and customer service levels.
The diamond drill could reasonably be assumed to present 2.6% of the EAME region’s costs andv would serve as a baseline for comparing the
“TRANSPORTATION AND CONSOLIDATION AT ELEVALT LTD.”
1. Situation analysis
Chris Summers, vice president of the management company to provide oilfield services Elevalt chain, is devoted to an analysis of their distribution centers worldwide (PED). Should evaluate network Elevalt developing countries across Europe, Africa and the Middle East to see if it would be beneficial to strengthen the existing network of six developing countries in one centralized DC in Europe or Africa. Before this decision can be taken, you should first optimize the current operation, which seems to suffer from inefficient management stocks. Inefficient inventory management also appears to be the engine of the additional transport costs. Summers should consider the benefits and risks associated with the consolidation of PED Elevalt maintaining its focus on the needs of customers Elevalt.
Operation process: Oil and gas extraction process
EVT’s customer received permission from relevant government agency to drill for oil or gas.
EVT then offer exploration to conduct geological surveys and assessments (use seismic waves).
If customers decide to extract oil or gas in specific region, EVT will perform drilling phase to drill into a specific ground using data gathered in exploration phase.
After drilling, EVT start to build out the infrastructure to bring oil and gas safely out of the ground and distribution system. This phase is called completion.
The last phase - production is to extract the oil or gas from the ground and transport to refinery. EVT’s customers (Petroleum companies) then refine the
2. Assumptions and missing information relating to operations
Assumption:
Summers’s team surmised that the EAME region was the dominant contributor to the disparity between inventory, total supply chain costs, and customer service levels.
The diamond drill could reasonably be assumed to present 2.6% of the EAME region’s costs andv would serve as a baseline for comparing the