The Metalworks Corporation Case Study

What additional issues need to be taken into consideration? How do your responses account for the long-term future, I.

E. Beyond 2012? 6. After visiting Curare, Mexico, the potential location for a new manufacturing facility, you receive additional Information about transportation taxes in Mexico. It turns out that if you decide to open a facility in Curare, each truck crossing the border into the United States will be taxed $50. How would you modify the analysis of the case? No need to do this analysis: Just describe how you would take additional taxation into consideration.

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. Keep in mind that you need to compare baseline total costs (I. E. , the total cost of the current network) against the total cost of other alternatives. There are quite a few alternative scenarios that can be modeled as available options center on the number of warehouses, when warehouses should be opened, the size of these facilities, and capacity expansion. Cost decreases should ultimately be compared to capacity expansion expenditures.

2 GETTING STARTED Logging In: Double-click on the “IBM ‘LOG Illogicalness 7. 0 EXE” icon in order to open the program. Click on the open folder icon. O Click on project. Your screen should now appear similar to the following: Logging Out: In order to “Log Out” of Illogicalness select “File”, then “Exit”, then “K”.

Your First Run & Optimizing the System: In order to optimize the system start from the main screen and select “Optimize” then select “Parameters”, then “Min/Max Group of Sites”. Input the number of warehouses you wish for Illogicalness to calculate a solution for first in “Maximum Warehouse” then in “Minimum Warehouses”. Click on “Run”.

Run the system as it currently exists (I. E. , two plants, two plant warehouses).

This is your baseline model. In order to minimize the amount of time Illogicalness spends calculating the solution, it is recommended that you input the same number in both data fields. Viewing the Solution: Right click on the desired solution and select “Select Solution”. Now, right click on the chosen Solution and select “Display Solution” and it should appear similar to that shown below. This will show which cities host the optimal solution for operating a arouse.

Viewing the Output Summary: To view the output summary select “Solution”, then “Standard Report”, and finally select “Summary Report”. The output summary as shown below will provide a summary of the costs associated with a particular solution, such as the total cost for this particular solution, warehousing costs, transportation costs, and the average distance to particular customer sites. Exporting data and reports: Input data and reports in Logician Plus may be exported to Microsoft Excel or Access for further analysis.

For example, if you want to save the “Cost Summary’ for a umber of warehouses that you ran, select “Solutions” > View Reports” > “Summary.

In the cost summary report (as shown below), either select “Export” or click on the Excel icon. Illogicalness will now either save the file as an “. XSL” in the directory that you specify or will open the file in Excel respectively. 5 Manufacturing Facilities: The data on all of the available manufacturing facilities can be found by clicking on “Data”, then “Sites”, then, “Plants. The information included here is the addresses of the sites, their geographic coordinates, and their fixed operating costs. You can look at all available production costs and capacities for each of the manufacturing facilities in the project.

From the screen with the geographic International on ten maturating Tactless, click on ten link on ten navigation panel under “Plants” called “Production Info”. This will result in you being able to view all products that each facility is capable of producing, the production capacity for each product, the unit cost of production, and the hours of production each unit takes.

Note: This is where you will be able to expand capacity at specific production facilities and reduce unit production cost. Product Information: 6 You are able to look up the specifications of each of the products that the Metalwork’s Corporation offers. First, you need to click on “Data”>”Products”>”Product Details”. You will then be able to view the name of each product, its weight, adjusted weight, and volume transportation, warehouse holding cost, in transit holding cost, freight class, and value.

Warehouse Locations: Each potential warehouse location can be viewed on the map as a red triangle. The data on all available warehouse locations can be found by clicking on, “Data” > “Warehouse” > “Warehouse Details”. The information included here is the addresses of the sites, their geographic coordinates, the warehouse type, the sizing factor, and their fixed operating costs for every possible warehouse location. You can look up all possible sizes for each potential new warehouse included in the project. From the screen with the geographic information, click on “Warehouse Capacity’.

This will result in you being able to view all of the possible options for sizing for each warehouse location as well as the fixed cost to open the warehouse, the fixed cost to close the warehouse, and all fixed operating costs.

7 Note: I Nils Is winner you go to create excellent warehouses: e. G. , suppose you open a warehouse in 2010 and you are now examining scenarios for 2012. After importing 2012 demand data, you will need to indicate that the warehouse opened in 2010 exists. Customer Facilities: Each of the customer facilities is represented on the map by a green dot.

The data on all of the available customer facilities can be found by clicking on “Data” > “Customers” > “Customer Details. ” The information included here is the name and location of the sites. Demand information for each customer is provided in the project. In order to view his information, you click on the box next to “Demand” on the page with the geographic information for each customer. The frequency of customer shipments to each customer is also provided. To view this information, you click on the link to Shipment Profile.