Our team was hired by upper management to manage the supply chain “Ticking Time Foam”. Our objective was to maximize the cash generated by sales in five regions, Calopeia, Sorange, Tyran, Fardo and Entworpe. Originally, Ticking Time Foam was responsible for managing the market solely in and from Calopeia. Our supply chain was then given the opportunity to expand into four additional regions by building new factories and warehouses. Our team took over management of the supply chain two years into the four-year lifespan, on day 730, allowing us days 730 to 1460 to maximize the income.
To manage the supply chain successfully, we needed to decide when to expand, into which regions, and how to successfully serve them so demand was fully captured. The other four factors included in this decision making process were capacity, reorder point, quantity, and shipping method. Detailed information about the cost associated with each factor was …show more content…
On day 820, we switched to the more economic truck option for local shipments to Calopeia from Calopeia. On day 1377, we switched back to mail for the expediency of fulfillment. Initially, the warehouse in Sorange utilized mail and was responsible for shipments to Sorange and Tyran. On day 845, we switched local shipping to Sorange from the Sorange warehouse to trucks, feeling that it would be more economical. However, towards the end of the simulation, on day 1377, we switched local Sorange shipments back to mail for expediency of fulfillment. Once the factory and warehouse in Fardo were complete, we decided to fulfill shipments via truck, because it was more economical with the low level of demand. At the end of the simulation, we allowed shipments from the warehouses in Fardo and Sorange to be sent to Entworpe to see if we could capture any of the final demand from that