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HMX Consulting. The ∙∙ Solution ∙∙ People. Team Name: HMX Consulting 1 st Round Room: RAWLS 4073 3:20pm – 3:40pm Malcolm Hooks Yueyi Ma Yidi Xu. Team Introduction. Yidi Xu. Yidi Xu Junior Industrial Management. Malcolm Hooks Senior Business Mathematics. Yueyi Ma - PowerPoint PPT Presentation
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Team Name: HMX Consulting1st Round Room: RAWLS 4073
3:20pm – 3:40pmMalcolm Hooks
Yueyi Ma Yidi Xu
HMX Consulting The ∙∙ Solution ∙∙ People
Yidi Xu
2014 Case Competition -- HMX Consulting 1
Team Introduction
Yueyi MaJunior
Accountancy
Yidi XuJunior
Industrial Management
Malcolm HooksSenior
Business Mathematics
Yidi Xu
2014 Case Competition -- HMX Consulting 2
Case Overview Focus Operation
s AnalysisRecommen
dationsImplement
ations
Agenda
Yidi Xu
2014 Case Competition -- HMX Consulting 3
Features DetailsNational-wide Distributed Sites
16 sites across the United States
Two centers in CMSC SAT and SVCTwo major warehouses and One small warehouse
W34 at SC, W87 at CA, small warehouse DBN at Dallas
Two major plants One at NC, one at SCDistribution Center (CDC)
At NC, distribute parts from external supplier and plants
Increasing demand from high-tech companies
Short Lead time required
ChallengesHigh inventory levelHigh Premium FreightLong Lead timeFrequently Stock out at W87 and DBN
Case Overview Focus Operations Analysis
Recommendations
Implementations
Case Overview
Yidi Xu
2014 Case Competition -- HMX Consulting 4
Case Overview Focus Operations Analysis
Recommendations
Implementations
Objectives Target ProblemsReduce overall inventory level - High fluctuation in inventory
- High holding costsReduce premium shipment - Frequently use of air freightReduce lead time - Long lead time according to the
freight schedule- Losing potential customers
Avoid stock out in warehouses - Frequently stock out will hinder expansion on market share
Focus
2014 Case Competition -- HMX Consulting 5
Case Overview Focus Operations Analysis Recommendations Implementations
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Total Order Demand, Average Inventory Level, Premium Shipment
Total Order Demand Average Inventory Level Premium Shipment
Dallas -SVCLos Angeles - SAT
San Francisco- SAT
Operation Analysis
Yueyi Ma
2014 Case Competition -- HMX Consulting 6
Case Overview Focus Operations Analysis
Recommendations
Implementations
Operation Analysis
Yueyi Ma
2014 Case Competition -- HMX Consulting 7
North South West -
500,000
1,000,000 1,500,000 2,000,000
2,500,000 3,000,000 3,500,000 4,000,000
4,500,000 5,000,000
Order by Premium Ship
North South West 5,400,000
5,600,000
5,800,000
6,000,000
6,200,000
6,400,000
6,600,000
6,800,000
7,000,000
7,200,000
Average Inventory Level
Case Overview Focus Operations Analysis
Recommendations
Implementations
Operation Analysis
Yueyi Ma
2014 Case Competition -- HMX Consulting 8
Case Overview Focus Operations Analysis
Recommendations
Implementations
Short term Solutions Why?Regionalize the Electronic
Sector - Regionalization will allow for a basis for improved logistics
Expand warehouse W87 - Want to increase capacity for sustainable growth
Expand Dallas-DBN into a warehouse
- Will elevate pressure on W87’s expansion
Expand Inventory in warehouse W34
- W34 is between two major plants Fayetteville, NC and Sumter, SC
Short-term Recommendations
1-3 yearsMalcolm Hooks
2014 Case Competition -- HMX Consulting 9
Short term Implementations How?
Regionalize the Electronic Sector
- Divide network into 3 regional areas (North, South, West)
Expand warehouse W87 - Build DBN near Phoenix site to help alleviate pressure on W87
Expand Dallas-DBN into a warehouse
- Expand existing warehouse starting in October
Expand Inventory in warehouse W34
-Allow W34 to carry more than just standard products
Case Overview Focus Operations Analysis
Recommendations
Implementations
Short-term Implementations
1-3 yearsMalcolm Hooks
2014 Case Competition -- HMX Consulting 10
Long term Solutions Why?
Build new fully functional plant near Las Vegas, NV
- Las Vegas, NV fits the population requirement and has land at discount
Introduce New Shipping Schedule
- New schedule will improve overall efficiencies and reduce Lead Time
Discontinue Partnership with CDC
- With new plant, there is no need for the third party to consolidate shipments form East to West
Case Overview Focus Operations Analysis
Recommendations
Implementations
Long-Term Recommendations
5-10 yearsMalcolm Hooks
2014 Case Competition -- HMX Consulting 11
Case Overview Focus Operations Analysis
Recommendations
Implementations
Long term Implementations How?
Build new fully functional plant near Las Vegas, NV
- Once DBN is completed, start work on new plant near Las Vegas, NV
Introduce New Shipping Schedule
- Las Vegas, NV (West)- Fayetteville, NC (North)- Sumter, SC (South)
Discontinue Partnership with CDC
- Discontinue Partnership once Las Vegas plant is completed.
Long-Term Implementations5 -10 years Malcolm
Hooks
2014 Case Competition -- HMX Consulting 12
Case Overview Focus Operations Analysis
Recommendations
Implementations
Thank You
2014 Case Competition -- HMX Consulting 12
Case Overview Focus Operations Analysis
Recommendations
Implementations
Appendix
HMX Consulting The ∙∙ Solution ∙∙ People
2014 Case Competition -- HMX Consulting 13
Case Overview Focus Operations Analysis
Recommendations
Implementations
Current shipping Schedule
Day 1
Day 2
Day 3
HMX Consulting The ∙∙ Solution ∙∙ People
AF-1
2014 Case Competition -- HMX Consulting 13
Case Overview Focus Operations Analysis
Recommendations
Implementations
New shipping Schedule
Fayetteville
Sumter
Las Vegas
New Shipping Schedule
- 1 day Lead Time/Order Interval
- Major Warehouse in 3 regions
- No need for 3rd Party CDC
HMX Consulting The ∙∙ Solution ∙∙ People
AF-2
2014 Case Competition -- HMX Consulting 13
Case Overview Focus Operations Analysis
Recommendations
Implementations
NEW VS. OLD NETWORK
New Network Current Network
W60W34 W87 Plants(NC, LV, SC)
SouthCMSC’s
NorthCMSC’s
WestCMSC’s
External Suppliers
W34 W87 Plants(NC, LV, SC)
CMSC’sCMSC’s CMSC’s
External Suppliers
CDC1-2 dayLead Time
2-3 dayLead Time
HMX Consulting The ∙∙ Solution ∙∙ People
AF-3
2014 Case Competition -- HMX Consulting 14
Case Overview Focus Operations Analysis
Recommendations
Implementations
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Order by Source
PlantsW34W87CDC & DBN
HMX Consulting The ∙∙ Solution ∙∙ People
AF-4
2014 Case Competition -- HMX Consulting 14
Case Overview Focus Operations Analysis
Recommendations
Implementations
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Total Demand by Region Per Month
North Total South Total West Total
HMX Consulting The ∙∙ Solution ∙∙ People
AF-5
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