CASE STUDY Y652L The Metalworks Corporation Case Study
The MetalWorks Corporation
A Network Configuration Project Using LogicNetPlus Software1
THE BUSINESS PROBLEM
MetalWorks is a company that produces and distributes steel file cabinets and lockable steel storage boxes, known in the Industry as safety boxes. Currently the company runs two manufacturing facilities, one located in Des Moines, Iowa which manufactures both products and the other located in Dover, Delaware that produces just the file cabinets. These two facilities serve all of the approximately 120,000 accounts (retailers and stores) throughout the United States and a small number of additional accounts in
Canada. The company currently operates out of two warehouses, one at each manufacturing facility.
MetalWorks was established in 1964 as a family venture and grew throughout the „70‟s and „80‟s at a fairly steady rate. Until
2004, the company only operated one manufacturing facility, a plant in Des Moines, Iowa. Approximately five years ago,
MetalWorks purchased a competitor, which operated a manufacturing facility in Dover, Delaware. MetalWorks decided to keep the plant, so there are now two facilities that manufacture the same file cabinets. MetalWorks is currently owned by 12 shareholders and is managed by a newly appointed CEO.
The file cabinets are sold to retail stores for $75 each and the safety boxes are sold for $107 each. Despite the high profitability of both products, the new CEO is concerned that the company‟s distribution network is not as efficient as it could be. At a recent shareholder meeting, he pointed out that the current distribution strategy employed by MetalWorks is a result of the merger of the two distribution networks that existed before 1991, the year that MetalWorks purchased its competitor.
The shareholders decided to engage a consulting firm to determine if the MetalWorks logistics network should be altered and if so, how. Your company, Advanced Logistics Consulting (ALC), was awarded the contract after six months of
A Network Configuration Project Using LogicNetPlus Software1
THE BUSINESS PROBLEM
MetalWorks is a company that produces and distributes steel file cabinets and lockable steel storage boxes, known in the Industry as safety boxes. Currently the company runs two manufacturing facilities, one located in Des Moines, Iowa which manufactures both products and the other located in Dover, Delaware that produces just the file cabinets. These two facilities serve all of the approximately 120,000 accounts (retailers and stores) throughout the United States and a small number of additional accounts in
Canada. The company currently operates out of two warehouses, one at each manufacturing facility.
MetalWorks was established in 1964 as a family venture and grew throughout the „70‟s and „80‟s at a fairly steady rate. Until
2004, the company only operated one manufacturing facility, a plant in Des Moines, Iowa. Approximately five years ago,
MetalWorks purchased a competitor, which operated a manufacturing facility in Dover, Delaware. MetalWorks decided to keep the plant, so there are now two facilities that manufacture the same file cabinets. MetalWorks is currently owned by 12 shareholders and is managed by a newly appointed CEO.
The file cabinets are sold to retail stores for $75 each and the safety boxes are sold for $107 each. Despite the high profitability of both products, the new CEO is concerned that the company‟s distribution network is not as efficient as it could be. At a recent shareholder meeting, he pointed out that the current distribution strategy employed by MetalWorks is a result of the merger of the two distribution networks that existed before 1991, the year that MetalWorks purchased its competitor.
The shareholders decided to engage a consulting firm to determine if the MetalWorks logistics network should be altered and if so, how. Your company, Advanced Logistics Consulting (ALC), was awarded the contract after six months of