Integrated Logistics
Paul Munnelly
Business Logistics & Transportation
Case Study 1
Integrated Logistics for DEP/GARD
Company: C1 C2 C3 C4 C5 C6
Percentage: 60,60,15,15 25,25,15,15 15,15,25,25 60,60 25,25 25,25
Compound: A B E F A B C D A B E F C D E F C D
DEP
Materials Inventory
(7 Days)
Manufacturing
(6-8 Days)
Distribution Warehouse
DEP Truck
(since destination is within 200 miles)
GARD
1. As illustrated above, the DEP/GARD supply chain is comprised of 7 stages. The second to last stage, the DEP truck, could be a common carrier if the customer lies outside of their delivery zone. There are two main stages that are adding value to DEP’s products: manufacturing and packaging at their distribution warehouse. These stages do also add value for their service, depending on how long each process takes. The two main areas that add value to their service is the time it takes for their suppliers to transport materials and the time is takes a DEP truck to deliver the finished product to GARD. On the other hand, there are two stages that do not add any value: matching orders to inventory and materials inventory.
2. The minimum order cycle for this supply chain is 8 days because it takes at least 2 days to receive the chemical compounds and 6 days to manufacture the finished polymer. The maximum order cycle for this supply chain is 24 days because it could take up to 9 days to receive the compounds from suppliers, then they could sit in inventory for 7 days, and finally take up to another 8 days to manufacture into polymers.
3. Yes, the performance cycle can be enhanced by the use of 25% and 15% suppliers. If you look at Company 3 as compared to Company 1, you can see that they offer faster delivery with a better certainty. Even if Company 3’s compounds are slightly more expensive, their better service will allow DEP to decrease inventory costs.
4. If I were Tom Lippet,
Business Logistics & Transportation
Case Study 1
Integrated Logistics for DEP/GARD
Company: C1 C2 C3 C4 C5 C6
Percentage: 60,60,15,15 25,25,15,15 15,15,25,25 60,60 25,25 25,25
Compound: A B E F A B C D A B E F C D E F C D
DEP
Materials Inventory
(7 Days)
Manufacturing
(6-8 Days)
Distribution Warehouse
DEP Truck
(since destination is within 200 miles)
GARD
1. As illustrated above, the DEP/GARD supply chain is comprised of 7 stages. The second to last stage, the DEP truck, could be a common carrier if the customer lies outside of their delivery zone. There are two main stages that are adding value to DEP’s products: manufacturing and packaging at their distribution warehouse. These stages do also add value for their service, depending on how long each process takes. The two main areas that add value to their service is the time it takes for their suppliers to transport materials and the time is takes a DEP truck to deliver the finished product to GARD. On the other hand, there are two stages that do not add any value: matching orders to inventory and materials inventory.
2. The minimum order cycle for this supply chain is 8 days because it takes at least 2 days to receive the chemical compounds and 6 days to manufacture the finished polymer. The maximum order cycle for this supply chain is 24 days because it could take up to 9 days to receive the compounds from suppliers, then they could sit in inventory for 7 days, and finally take up to another 8 days to manufacture into polymers.
3. Yes, the performance cycle can be enhanced by the use of 25% and 15% suppliers. If you look at Company 3 as compared to Company 1, you can see that they offer faster delivery with a better certainty. Even if Company 3’s compounds are slightly more expensive, their better service will allow DEP to decrease inventory costs.
4. If I were Tom Lippet,