Optimizing Supply Chain Management

The assignment involves simulating a supply chain system with various trucks, factories, warehouses, and routes. It includes calculating costs such as facility, on-hand values, transport, and total costs. The simulation aims to design an effective supply chain that manages inventory movements and achieves cost-effectiveness. Through the process, the student identifies areas for improvement, such as reducing storage capacity in initial and new distribution centers, adjusting production quantities in factories, and relocating stores. The simulation also highlights the importance of considering short-term and long-term objectives while making decisions. Overall, the assignment provides an opportunity to learn about supply chain management and optimize inventory movements.

Running Head: SCM Globe Research Paper
SCM Globe Research Paper

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SCM Globe Research Paper
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Conclusion:..............................................................................................................................26

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SCM Globe Research Paper
Introduction:
The main aim of the SCM Global system is to educate the fundamental and basic level supply
chain management dynamics. The supply chain simulation helps to avail the opportunities of
operating the different activities of supply chain. The supply chain is the tool that is used by
the organizations to organize the different activities in relation to the production and final
delivery of the deliverables of the organization. The supply chain management has gained
importance in the recent times as it ensures the organizations mainly in the manufacturing of
goods to control costs and to enhance operational excellence. The main principle of the
supply chain management is to make the organizations to be able to successfully engage the
different operations associated with the production of goods and services to reach the
doorsteps of the customers. It is also useful for the organizations as it helps to enrich the
operations linked with the external business networks.
The Cincinnati Seasonings is a company operating a seasoning factory located at Cincinnati
with a warehouse for distribution of the final products. The company is reputed for its
Cincinnati-style Chilli and it is one of the most remarkable names and popular among the
restaurants in Ohio. It is the popular dish that is used in many restaurants across the world
and the finest quality of mix seasonings adds flavour. The company is delivering its products
in the stores located in Ohio. The supply chain needs to be reconfigured and the report entails
all the important insights to the various operations and activities of supply chain required for
effective business conducts.
Discussion:
The seasoning factory and the distribution centre of the company are linked with a route to
join both the facilities. The main aim of the company is to build a successful supply chain in

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order to extract the benefits of seasoning business of the company. The supply chain
activities can be done with the help of adding the number of trucks or by deleting the
deliverables or by developing more seasonings. The routes can be either added or created
along with the additions of the routes. The Spicy Cube is the unit of shipment for the
seasoning spices and it also takes care of the sales records. In the initial scenario it can be
mentioned that there are three stores of the company which are named as Louisville Store -
Spicy Cube, Indianapolis Store - Spicy Cube, Ft Wayne Store - Spicy Cube. The initial
baseline data is given below:
The baseline information of the scenario is reflected in the table below:
Facilities
Deman
d
Productio
n
On
hand
Max
Storag
e
Ft.
Wayne
20 0 780 850
Indy 70 0 230 1000
Louisvill
e
100 0 400 1500
DC 0 0
386
0
15000
Factory 0 350 128 3000

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0
The following table is presenting the Inventory for Baseline Facility and Storage. The table
also implies the demand for the units of Spicy Cube, hand inventory and capacity for the
maximum storage.
Table 1: Baseline Facility inventory and storage
The baseline facility depicts the demand for the Spicy Cube units in terms of the On Hand
Inventory and the Maximum Storage Capacity.
Trucks
Name Type
Carrying
Capacity
Delay
Between
Runs(Hours)
Starting
Location
Truck
1
Small 30 20 DC
Truck
2
Small 50 10 DC
Truck
3
Large 120 20 DC
Truck Med 50 20 DC

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4
Fact
T 1
Med 40 8 Factory
The following table is showing the carrying capacity of the trucks, the delay in runs, initial or
the starting locations:
Table 2: Shipment Trucks
The table above depicts the trucks of the company with their respective carrying capacities,
delays between runs and their starting locations.
Routes
Tru
ck
Tot
al
Ti
me
(hr
s)
Stop/Drop/
Pickup 1
Stop/Drop/
Pickup 2
Factory
to DC
Fac
t T1
0.4 DC/20/0
DC to
Louisvi
lle
Tru
ck
1
4 LV/30/0

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DC to
Louisvi
lle
Tru
ck
2
4 LV/30/0
Dc to
Indy
Tru
ck
3
4 IN/50/0
DC/
IN/FW
Tru
ck
4
8.2
5
IN/30/0 FW/40/0
The main aim behind the simulation is to get the information regarding the movements of the
inventory through the different facilities. It provides the knowledge regarding the excess
build ups of the stock and the areas of gaps where the stock is found to be short in capacity.
The inventories must be there in the system in ample mount and this is one of the most
important criteria to keep production process on-going and without any constraint or hassle.
The wastages and excess inventory can also enhance the cost of the production and the
business. The main aim of supply chain activities and management of the same is to ensure
that there is no excess or shortage of raw materials or inventories. The majority of the
organizations fail to diagnose their capacity and it results into blocking of working capital
and enhancement of the operating costs. The shortage of inventory can keep the operations
and procedures idle which puts pressure on the fixed costs. The excess inventories also imply
the lack of management of the supply chain which is needed to be ensured so that the cost can
be controlled.

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Accomplishments:
From the analysis of the different aspects of the supply chain I could get a clear idea about
the simulation. From my learning it is clear that sometimes it is better that small changes can
be made to run the simulation so that the differences through the changes have been made
could be understood. The charts on different particular facilities have been observed by me
and it has made me to understand the issues and to make feasible predictions about the
facilities to fail in the process of simulation. From the initial scenario I have found that the
storage capacity of Ft. Wayne is not enough and it might exceed the capacity of the storage.
The reason behind the lack of storage capacity is that the demand for the quantity has been
less than the amount delivered on regular basis.
The initial tasks involved making adjustments regarding the delivering quantities by
amending the truck capacities and the quantities of delivery in the routes. I have given a trail
by combining the some of the routes. I have used larger trucks to enhance the storage
capacity. This has made me to able to achieve the objective of just-in-time or JIT in the
schedule of the delivery in the process of simulation. I have been able to deliver the qualities
as per the demands on daily basis. The demands of the stores have been matched with that of
the delivery quantities.
One important aspect I have noticed is that the cost of transportation has been made
normalized after I have reached the principles of JIT schedule and I have realized that there
has been no requirement for further modifications till I choose any alternative schedule. This
idea has made me to achieve the success of controlling cost and to reduce the same. I have
analyzed the issue and found that there have been issues in the increasing cost. The costs of
the company have been observed to have been increased because of the over capacity of the
storage in the stores which had affected the profitability of the company. The increased costs

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of the company if nit controlled timely it can lead to company loss and sometimes even store
closure. I have observed that by reducing the storage capacity the cost of operations could
have been reduced.
I have found that the integration between the new trucks and the JIT schedule and the
movement of the inventory in the stores have made the stores to have reduced inventory
storage capacity and the products below the normal limit which in its turn has reduced the
cost of inventory. The routes have been modified and the use of larger trucks has enabled to
reach the inventories to the destination at scheduled time. This has saved the time and the
cost. The storage capacity has been reduced and it has been identified to be one of the issues.
This has enhanced the profits of the stores. The attempts that I had taken had positive impacts
on the profitability of the stores, reduction of possible shortage of the capacity and to reduce
the wastages and cost of operations. The larger shipments have positive impacts has assisted
me in delivery the products from the warehouse to the destination stores.
Comparisons:
Week 2:
Facilities
Demand Production
Fina
l On
hand
Max
Storage
Ft.
Wayne
20 0 570 850
Indy 70 0 230 1000

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Louisville 100 0 820 1500
DC 0 0 6550 15000
Factory 0 370 1300 3000
Trucks
Type Carry Delay Start
Truck
1
Med 65 15 DC
Truck
2
Med 70 15 DC
Truck
3
Small 30 20 DC
Truck
4
Small 30 8 DC
Fact T
1
Large 120 10 Factory
Routes
Truc
k
Time Stop/Drop/
Pickup 1
Stop/Drop/Pickup
2

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Factory to
DC
Fact
T1
0.4 DC/120/0
DC to
Louisville
Truc
k 1
4 LV/70/0
DC to
Louisville
Truc
k 2
4 LV/50/0
Dc to Indy
Truc
k 3
4 IN/40/0
DC/IN/FW
Truc
k 4
8.25 IN/20/0 FW/15/0
The highlighted blocks depict the changes made to the delivery routes and trucks so that
adequate quantities can be brought into the stores.
The changes initiated have been marked in colours. The routes of delivery were changed. The
routes of the trucks have also been changed. This was done to make the arrival of sufficient
amount of inventories and products at the destined locations of the stores. The quantities in
Ft. Wayne had been reduced while it had been increased in Louisville Store - Spicy Cube and
in the warehouse along with the factory. The existing factory of the company had been
enhanced in capacity so that the increased demands in the quantity can be supported. There
can be need for the establishment of the new factory. From the analysis and on the basis of
my experience I can suggest the formation of a new factory to support the increased demands
in the stores. If the new store is developed then there must a route connecting the new store
and the new factory so that the cost of transportation can be reduced and controlled. The fuel
costs can be reduced, the number of trucks can be controlled and the overall increased cost of

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the company can be controlled. The initial cost of establishing a new store and factory will
get managed with the reduced cost of other supply chain operations.
The establishment of new store along the route of the new factory can also reduce the cost of
the delivery of the final goods and the time can also be saved. The sales can be increased if
the quantity demanded can be handled with increased goods. The time of the delivery of the
goods can be reduced. The proximity of the new store to the new factory has to be close so
that the time, money and fuel cost can be reduced. The cost of trucks can also be reduced of
the proximity of the store to the factory is made close.
Week 3:
Facilities
Demand Production
Final
On
hand
Max
Storage
Facility Cost
Ft.
Wayne
20 0 590 850 $124,300.00
Indy 70 0 250 1000 $140,400.00
Louisville 100 0 840 1500 $255,500.00
DC 0 0 4200 15000 $1,130,000.00
Chicago 100 0 300 500 $110,500.00
Columbus 30 0 60 300 $57,800.00

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Factory 0 390 1650 3000 $1,244,000.00
Trucks
Type Carry Delay Start Costs
Truck 1 Med 65 15 DC $6,500.00
Truck 2 Med 70 15 DC $6,500.00
Truck 3 Small 30 20 DC $5,440.50
Truck 4 Small 30 8 DC $12,236.00
Fact T
1
Large 120 10 Factory $8,750.00
Truck 5 Large 130 14 DC $20,225.00
Truck 6 Small 60 35 DC $8,650.00
Routes
Truc
k
Time
Stop/Drop/
Pickup 1
Stop/Drop/Pickup
2
Factory to
DC
Fact
T1
0.4 DC/120/0
DC to
Louisville
Truc
k 1
4 LV/70/0

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DC to
Louisville
Truc
k 2
4 LV/50/0
Dc to Indy
Truc
k 3
4 IN/40/0
DC/IN/FW
Truc
k 4
8.25 IN/20/0 FW/15/0
DC to
Chicago
Truc
k 5
9.44 CHI/80/0
DC to
Columbus
Truc
k 6
4.75 COL/40/0
In this week two new stores were added at Chicago and Columbus. The main changes reflect
a greater increase in the on hand capacity at the Factory along with a sharp decrease in the
inventory of the DC Warehouse. The costs were also tracked by me in order to compare
them. The JIT schedule was observed at Indianapolis, Columbus and Chicago stores.
This week has initiated the addition of two new stores at Chicago and Columbus. The factory
capacity has been changed. The inventory in Distribution Centre warehouse has been
reduced. From close tracking of the cost for the purpose of comparison it has been seen that
in the stores at Louisville Store - Spicy Cube, Columbus and Chicago the JIT schedule has
been reached. The final amount in hand varied from that of in the initial stage. The new stores
have been observed to have been beneficial for the ultimate cost control of the company. The
inventories could be reached at time saving both time and cost of fuel. The increased quantity
demanded now can be handled and managed with enhanced quantities in different stores.

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Week 4:
Facilities
Demand Production
Final
On
hand
Max
Storage
Facility Cost
Ft.
Wayne
20 0 450 850 $124,300.00
Indy 70 0 250 1000 $140,400.00
Louisville 100 0 650 1500 $255,500.00
DC 0 0 2453 15000 $1,130,000.00
Chicago 100 0 300 500 $110,500.00
Columbus 30 0 130 300 $57,800.00
Factory 0 390 1525 3000 $1,244,000.00
Trucks
Type Carry Delay Start Costs
Truck 1 Med 65 15 DC $6,500.00
Truck 4 Small 30 8 DC $14,546.00

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Fact T
1
Large 120 10 Factory
$8,750.00
Truck 5 Large 130 14 DC $20,225.00
Routes
Truc
k
Time
Stop/Drop/Pickup
1
Stop/Drop/Pickup
2
Stop/Drop/Pickup
3
Factory to
DC
Fact
T1
0.4 DC/115/0
DC to
Louisville
Truc
k 1
4 LV/120/0
DC/IN/FW
Truc
k 4
8.25 IN/60/0 FW/25/0
COL/43/0
DC to
Chicago
Truc
k 5
9.44 CHI/80/0
In this week my focus was to combine the routes and ply large trucks. The transportation
costs were reduced significantly as I invested in four large trucks. For tending to the large
quantity on hand at Ft. Wayne Store and increasing few of the safety stock at Columbus
Store, the truck was made to pick up some of the additional stock and then deliver it

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Columbus. The remaining stores were able to bring balance to the on hand quantities that
signified which established the implementation of the JIT scheduling.
The routes and the larger trucks have been combined in week 4. I have observed that the
combination of the two has helped to reduce the cost of fuel and to make the flow of delivery
smooth. There has been issue in the store of Ft. Wayne regarding the hand quantity and this
has been addressed by transferring some of the stocks from the store of Ft. Wayne to that of
the Columbus where there has been issue regarding shortage of product. This has resulted
into the stabilization of the on-hand amounts of the stores which implies successful attaining
of the JIT schedule in the system.
Week 8:
The expectations for Week 5 and Week 7 were able to be achieved by me through the
adjustments that I made in Week 4. Therefore, I am moving to the Week 8 where again I had
to make some major changes. In the week 5 and 6 there have been positive changes and
achievements as per the desired outcomes. The major changes have taken place in week 8
which has been shown in the below table:
Facilities
Demand Production
Final On
hand
Max
Storage
Facility Cost On Hand Value
Ft.
Wayne
20 0 50/30 100 $45,300.00 $43,200.00
Indy 70 0 250 450 $140,400.00 $325,000.00

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Louisville 100 0 650 650 $255,500.00 $525,000.00
DC 0 0 770/3544 6000 $1,130,000.00 $3,65,000.00
Chicago 100 0 300 500 $110,500.00 $3,85,000.00
Columbus 30 0 70/100 200 $57,800.00 $85,000.00
Factory 0 390 1525 1500 $1,244,000.00 $1,095,000.00
Trucks
Type Carry Delay Start Trans Costs
Truck 1 Med 65 15 DC $6,500.00
Truck 4 Small 30 8 DC $14,546.00
Fact T
1
Large 120 9 Factory
$9,450.00
Truck 5 Large 130 14 DC $20,225.00
Routes
Truc
k
Time
Stop/Drop/Pickup
1
Stop/Drop/Pickup
2
Stop/Drop/Pickup
3
Factory to
DC
Fact
T1
0.4 DC/115/0

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DC to
Louisville
Truc
k 1
4 LV/120/0
DC/IN/FW
Truc
k 4
8.25 IN/50/0 FW/25/0
COL/40/0
DC to
Chicago
Truc
k 5
9.44 IN/10/0 CHI/80/0
I have realized that once I have been able to change the storage capacities I can also make
positive and required amendments in the on-hand quantities in its initial stage. The storage
capacity in the store of Ft. Wayne has been found to be in excess. The shifts from this store to
the new store at Columbus have helped the initiation of the simulation at its initial stage. The
adjustments that I have made in quantities delivered and the amendments in the delay in the
delivery by the trucks have been possible to make the schedule of JIT to take place. In the
final stage I have observed that the reduction in the costs of facilities could be made for the
stores and mainly in the store of Ft. Wayne and also in the Distribution Centre. All these have
impacted to make more reductions in cost and savings of money.
Week 9-1:
The table below shows the establishment of three new stores with one distribution
warehouse:
Facilities
Demand Production Final On Max Facility Cost On Hand Value

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hand Storage
Ft.
Wayne
20 0 30 100 $45,300.00 $43,200.00
Indy 70 0 250 450 $140,400.00 $325,000.00
Louisville 100 0 650 650 $255,500.00 $525,000.00
DC 0 0 770/3120 6000 $1,130,000.00 $3,65,000.00
Chicago 100 0 300 500 $110,500.00 $3,85,000.00
Columbus 30 0 70/100 200 $57,800.00 $85,000.00
Factory 0 620 1525 1500 $1,244,000.00 $1,095,000.00
St. Louis 100 0 320/220 620 $120,900.00 $200,000.00
Kansas
City
70 0 255/115 515 $108,500.00 $110,000.00
Des
Moines
30 0 85/25 210 $46,500.00 $30,000.00
Trucks
Type Carry Delay Start Trans Costs
Truck 1 Med 65 15 DC $6,500.00
Truck 2 Large 100 10 DC $23,724.00
Truck 3 Large 100 0 DC $35,624.00

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Truck 4 Small 30 8 DC $14,546.00
Fact T
1
Large 120 9 Factory
$9,450.00
Truck 5 Large 130 14 DC $20,225.00
Fact T2 Large 110 11 Factory $6,434.00
Routes
Truck Time
Stop/Drop/
Pickup 1
Stop/Drop/Pickup
2
Stop/Drop/Pickup
3
Factory to
DC
Fact
T1
0.4 DC/118/0
DC to
Louisville
Truck
1
4 LV/120/0
DC to St.
Louis
Truck
2
5.45 SL/90/0
DC to
KC/DM
Truck
3
23.30 KC/60/0 DM/25/0
DC/IN/
FW
Truck
4
8.25 IN/50/0 FW/25/0
COL/40/0

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DC to
Chicago
Truck
5
9.44 IN/10/0 CHI/80/0
Fact to DC
2
Fact
T2
0.4 DC/115/0
I have done modelling of the stores of the stores in St. Louis and the store in Kansas city on
the basis of the store at Indianapolis. I have also modelled the store located at Des Moines o
the basis of the store located at Columbus. After viewing the online rental rates I found that
the stores at St. Louis and Kansas City have been found to be much similar with that of the
store located in Indianapolis. There have been many similarities between the stores of Des
Moines and Columbus store. The tables have presented the on-hand quantities in the initial
stage and at the end. I had been concerned with the route of truck 3 which is located at
faraway place and it takes almost 24 hours. The built-in capacity has been made convenient
so that the distance does not become the constraint in keeping the stock of the inventories and
the products out of control. I have also added another tuck as the production has been
increased and there was a need for keeping the Distribution Centre with adequate stock.
Week 9-2:
This week is concerned with the addition of another Distribution Centre warehouse at St.
Louis. I have made some of the amendments in the routes of the new Distribution Centre.
Here St. Louis DC, one more DC Warehouse was added and some routes were changed for
the new DC. The below table shows the details:
Facilities

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Demand Production
Final On
hand
Max
Storage
Facility Cost On Hand Value
Ft.
Wayne
20 0 30 100 $45,300.00 $43,200.00
Indy 70 0 250 450 $140,400.00 $325,000.00
Louisville 100 0 650 650 $255,500.00 $525,000.00
DC 0 0 2015/1234 4000 $1,130,000.00 $3,65,000.00
Chicago 100 0 350 500 $110,500.00 $3,85,000.00
Columbus 30 0 80 200 $57,800.00 $85,000.00
Factory 0 620 1320 1500 $1,244,000.00 $1,095,000.00
St. Louis 100 0 300/200 620 $120,900.00 $200,000.00
Kansas
City
70 0 250/250 515 $108,500.00 $110,000.00
Des
Moines
30 0 90/50 210 $46,500.00 $30,000.00
SL DC 0 0 2000/1400 3000 $545,000.00 $1,320,000.00
Trucks
Type Carry Delay Start Trans Costs
Truck 1 Med 65 15 DC $6,500.00

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Truck 2 Large 100 22 SL DC $3,300.00
Truck 3 Large 100 10 DC $35,624.00
Truck 4 Small 30 8 DC $14,546.00
Fact T
1
Large 110 9 Factory
$9,450.00
Truck 5 Large 130 14 DC $20,225.00
Fact T2 Large 100 0 Factory $6,434.00
Routes
Truck Time
Stop/Drop/
Pickup 1
Stop/Drop/Pickup
2
Stop/Drop/Pickup
3
Factory to
DC
Fact
T1
0.4 DC/118/0
DC to
Louisville
Truck
1
4 LV/120/0
DC to St.
Louis
Truck
2
5.45 SL/90/0
DC to
KC/DM
Truck
3
23.30 KC/60/0 DM/25/0
DC/IN/ Truck 8.25 IN/50/0 FW/25/0 COL/40/0