6LO506: Supply Chain System Modelling – University of Derby – Report Writing Assessment Answer

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Code: 6LO506
Supply Chain System Modelling Report Writing Assessment Answer
Assignment Task:
scenario:
Astrella Beer Company (ABC) is based in Catalonia, a region of Spain. The company has two factories producing beer at Berga and Lleida. The beer is exported by a company called Beer Online Delivery Guaranteed Yesterday (BODGY) via two distributions centres at Barcelona and Valencia. From these distributions centres the beer is exported to the Italian ports of Genoa, Rome, Naples, Palermo, Cagliari and Bari.

Task 1:

What might be the benefits to (ABC) and/or (BODGY) by using Enterprise Resource Planning systems in their operations. Discuss the specific benefits for the companies producing and distributing the beer.

BODGY wants to use cloud based technologies to improve the efficiency of its deliveries. From factory to distribution centres, from distribution centres to ports and onwards to consumers in Italy. What are the advantages of this technology when delivering products to customers.

Discuss what problems may occur when implementing a cloud based system. How might the business overcome these problems?

Task 2:
Draw a network for the company’s supply network. Identify the supply nodes, transhipment nodes and the demand nodes in this network.
Model this transhipment problem using an Excel spreadsheet and find the how many units should be shipped down each route to give the minimum total cost. Assuming unlimited capacity at this stage, how much flows through the distribution centres of Barcelona and Valencia?
The maximum that can flow through any distribution centre is limited to 95 
unit’s. What is the new minimum cost in Euro’s?  
It is proposed to open a new distribution centre at Taragona. The cost of haulage and shipping from each manufacturing outlet is given and the shipping and haulage cost to distributors are given below in euros.
Should BODGY want to ship extra capacity through Barcelona the costs would increase per unit. Investigate different percentage increases for the unit costs through Barcelona? Discuss when it would be more cost effective to open a new distribution centre at Taragona? Suggest the optimum operating capacity through each port and run several simulations to support your answer.  Discuss possible implications for your supply chain network.

Task 3:

 Pedro the production manager at Lleida analyses the cost of bottling and storing Astrella beer ready for export to Italy. A unit of beer is equal to 1000 bottles.
Information about production levels and costs is as follows:
The annual demand from Italy is 2280 units spread evenly over the year.
The maximum production capacity annually is 9120 units.
The cost of setting up the bottling production line is
€
1500 per batch.
The holding cost of storing the bottled beer is
€
1600 per unit.
Currently the beer is manufactured in batches of 100 units.

Assuming that there is no stock initially at the start of the year. Draw a graph and annotate it to show the daily amount of inventory stored in the warehouse for one year based on batches of 100 units.

Calculate the current annual cost of holding the beer and the annual set-up costs based on batches of 100 units and calculate the economic batch quantity using the formula EBQ=
  
(6 marks)

If Pedro adopts the economic batch quantity when producing beer. Then discuss how Pedro should manage this change in production method, for example who should he liaise with to implement this change? What changes would have to be considered if the size of the batches produced are increased. Conversely what changes would have to be considered if the size of the batches produced are increased. Draw graphs showing the total costs to support your answers.

Task 4:
 
A salesperson working for BODGY and based in Barcelona needs to visit all the major cities in Europe on a sales drive designed to expand the company’s supply chain network. The salesperson would like to visit 10 European city in Europe.

Choose any 10 cities that are within 1500Km of Barcelona.Using the spreadsheet ‘Q4 European Cities’ and starting at Barcelona plan a route using ‘The Travevalling salesman Algorithmn’ that starts at Barcelona and visits all 10 of your cities. Clearly state the total minimum distance and the order in which the cities are visited. Screenshot your spreadsheet and reveal your formulae explaining how the program works.

Discuss how ‘The Travelling Salesperson Algoritmn’ can be adapted to deliver beer as quickly as possible to 30 hotels in Catalonia. What information would be needed?  Discuss how the spreadsheet could be adapted to give the minimum time taken to deliver to the 20 of these hotels that had placed orders that day. Screenshot an example of your spreadsheet.                 

Task 5:
In order to fulfil the requirements of your Personal Development Plan (PDP) you must include a personal reflection on the process of managing your learning on this module. Give real life examples of applying the techniques. This is to be included at the end of your assignment and to be between 350 and 500 words in length
.
 
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