ie 3101: supply chain modeling project
DESCRIPTION
IE 3101: Supply Chain Modeling Project. Gita Ayu Damie Bartley Wendy Hsia Leon Liu Peter Severa. Company Overview. Media Packaging Company CD Jewel Cases DVD Cases Video, Audio packaging, etc. Company Background. Atlanta Precision Molding Japanese Owned Palladium - Nexpak - PowerPoint PPT PresentationTRANSCRIPT
IE 3101:IE 3101:Supply ChainSupply ChainModeling ProjectModeling Project
Gita AyuDamie Bartley
Wendy HsiaLeon Liu
Peter Severa
Company OverviewCompany Overview• Media Packaging Company
– CD Jewel Cases– DVD Cases– Video, Audio packaging, etc..
Company BackgroundCompany Background• Atlanta Precision Molding
– Japanese Owned• Palladium - Nexpak
– 4th Largest Injection Molding Company– Largest Supplier of Media Packaging for
Audio and Video formats
Company BackgroundCompany Background• Competitors Acquired
– Joyce Molding– Alpha Media Packaging
• Mercury Foam
• Competitors– Viva– Tritex Magnetics– Shape (bankrupt)
Supply Chain Flow-ChartSupply Chain Flow-Chart
Suppliers
Purchasing
Manufacturing
Logistics
Shipping
Consignment
MaterialsRequirements
Raw Materials
EngineeringRaw Material Levels
InventoryAllocations
InventoryLevels
Finished Goods
ShippingQuantities
Inventory
CustomerOrders
Customers
FinishedGoods
Sales
Customer Orders
Customer Orders
ShippingQuantities
Materials Flow
Information Flow
SuppliersSuppliers• Chevron, Dow, and Nova Chemicals
– Polystyrene• Benzene and Ethylene
– Gas Prices• Price increased by 100% since January 2000
• Chesapeake, VA– Shipped by barge
Suppliers Purchasing Manufacturing Logistics Shipping
PurchasingPurchasing• Raw Materials
• Delivered by truck daily• ROP is one to two days stock
– monthly projection adjusted daily
• 24 hour Safety Stock• Use Push & Pull method
– Suppliers use 3-month projection– NEXPAK has control to change deliveries
• Lead time is 10-14 days
Suppliers Purchasing Manufacturing Logistics Shipping
ManufacturingManufacturing• Polystyrene
– General Purpose• Clear Trays
– High Impact• Tray Inserts
Suppliers Purchasing Manufacturing Logistics Shipping
ManufacturingManufacturing• Efficiency
– ¼ million lbs per day• 70 million lbs per year• 1.1 billion products per year• 1.5-3% product is scrapped
– Control software used to monitor polystyrene levels
Suppliers Purchasing Manufacturing Logistics Shipping
ManufacturingManufacturing• Product Mix
• NEXPAK produces five different products• DVD cases will start production in January
2001– additional three machines
Suppliers Purchasing Manufacturing Logistics Shipping
ManufacturingManufacturing• Storage of Product / Packaging
– Palettes• 42”x42”• 40”x40” *
– Shelf Life• 2-3 Months
Suppliers Purchasing Manufacturing Logistics Shipping
ManufacturingManufacturing• Capacity
– Atlanta facility is largest• 221,000 sq. ft• 140 Employees• 101 Injection Molding Machines• Fully Automated Production Line
– 76 Machines on Slow Line– 25 Machines on Fast Line
– Current output averages 1.5 million trays / day (3.3 million pieces)
Suppliers Purchasing Manufacturing Logistics Shipping
ManufacturingManufacturing• Special Orders
– Two week lead time– Higher production cost
• Requires special mold to be made• Cost of special mold is absorbed by Nexpak
Suppliers Purchasing Manufacturing Logistics Shipping
ManufacturingManufacturing• Quality Assurance for Customer Service
– Customer reported defects• Warpage• Packaging
– Inspection occurs every four hours– One bundle is inspected per machine for 20-30
criteria• Visual Defects• Physical Defects
Suppliers Purchasing Manufacturing Logistics Shipping
LogisticsLogistics• Seasonal Demand Pattern
– No problem with stock-outs– No production is outsourced
Suppliers Purchasing Manufacturing Logistics Shipping
LogisticsLogistics• Inventory
– 2-3 weeks held on-site• 10-15 million units
– Two offsite inventory locations• Long-term• Consignment Warehouse
– Logistics International
Suppliers Purchasing Manufacturing Logistics Shipping
LogisticsLogistics• Logistics International
– Floor space and time based fees• Only pay for space that is used
– Provide carrier service
Suppliers Purchasing Manufacturing Logistics Shipping
ShippingShipping• Ships full truckloads• LTL shipping occurs very infrequently• Shipping to Europe done by sea
– Only done if European facility cannot meet demand
• Order cut-off time is 1pm ET
Suppliers Purchasing Manufacturing Logistics Shipping
ShippingShipping• Distribution
– 10-30 different locations per month• 3-4 Truckloads per location per day
– Main distribution center in Indiana under consideration
– Atlanta Facility• 10-20 truckloads daily for pre-holiday season• 6-8 truckloads daily during the off-season
Suppliers Purchasing Manufacturing Logistics Shipping
CustomersCustomers• Sony• Warner Brothers• Seagram's• BMG• 20 Smaller companies
– TDK, EMI, JVC ...
Questions?Questions?