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Supply Chain Game #1 Write-up
Background:
Jacobs Industries is a company with a single factory and warehouse in Calopeia that manufactures and sells air conditioning retrofitting kits. Its only products, a light-weight foam, is an industrial chemical that can be mixed with air to create an efficient thermal acoustic insulator. Jacobs Industries produces chemicals in batches and loads the drums to be shipped by truck to the warehouse. If Jacobs Industries cannot fill the order within 24 hours of receiving the order then the business is lost. The chemical is packed and shipped in drums costing $1450 apiece. The company has been running for two years (730 days) and has shown a seasonal trend in sales. In two years’ time a new foam technology will brand the current Jacobs Industry’s foam product obsolete. All customers are knowledgeable of the forthcoming new technology, leading to the conclusion that demand will decrease to zero on day 1460.
In the Jacobs factory, the chemical is produced in batches and shipped in trucks to the warehouse as soon as they are finished. A truck can hold up to 200 drums and cost $15,000 regardless of how many drums are in a the truck and takes 7 days to get to the warehouse for sale; mailing the product to customers will cost $150 per drum and take only 1 day.
Problem:
The company has been operating for two years already and within the following two years the product that they are producing will be outdated and obsolete. The company is also losing demand, and they don’t know why. There’s not enough capacity to meet demand and they don’t understand inventory planning or forecasting. Our team, Brofessionals00, was called up to assess and fix issues within Jacobs Industries’ operations. Our job was to generate the most profit for Jacobs, and our first issue at hand was to decrease costs and increase revenue. Lowering the costs is composed of changing the number of drums that are loaded into the truck, along with
Background:
Jacobs Industries is a company with a single factory and warehouse in Calopeia that manufactures and sells air conditioning retrofitting kits. Its only products, a light-weight foam, is an industrial chemical that can be mixed with air to create an efficient thermal acoustic insulator. Jacobs Industries produces chemicals in batches and loads the drums to be shipped by truck to the warehouse. If Jacobs Industries cannot fill the order within 24 hours of receiving the order then the business is lost. The chemical is packed and shipped in drums costing $1450 apiece. The company has been running for two years (730 days) and has shown a seasonal trend in sales. In two years’ time a new foam technology will brand the current Jacobs Industry’s foam product obsolete. All customers are knowledgeable of the forthcoming new technology, leading to the conclusion that demand will decrease to zero on day 1460.
In the Jacobs factory, the chemical is produced in batches and shipped in trucks to the warehouse as soon as they are finished. A truck can hold up to 200 drums and cost $15,000 regardless of how many drums are in a the truck and takes 7 days to get to the warehouse for sale; mailing the product to customers will cost $150 per drum and take only 1 day.
Problem:
The company has been operating for two years already and within the following two years the product that they are producing will be outdated and obsolete. The company is also losing demand, and they don’t know why. There’s not enough capacity to meet demand and they don’t understand inventory planning or forecasting. Our team, Brofessionals00, was called up to assess and fix issues within Jacobs Industries’ operations. Our job was to generate the most profit for Jacobs, and our first issue at hand was to decrease costs and increase revenue. Lowering the costs is composed of changing the number of drums that are loaded into the truck, along with