Operations Management (PDF)

Running head: OPERATIONS MANAGEMENT
Operations Management
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1OPERATIONS MANAGEMENT
Executive summary
The XYZ Company is a vehicle shipping organization. The company ships approximately an
average of 29,000 vehicles from approximately 70 assembly plants to approximately 20,000
dealers by truck, rail and ship. Geographical groups of dealers are assigned to vehicle
distribution centers (VDC). The current logistics used by the company is giving rise to several
issues like high investment costs, delay in delivery to the dealers and others. Considering the fact
that the autonomous Vehicles posses the potential to dramatically change the delivery and
operating processes of the finished vehicle, the management of XYZ company is planning to
invest on AV. The purpose of this research paper is to redesign the vehicle delivery networks for
the XYZ company so that the cost of shipping, yard operations and late deliveries can be
reduced. The four scenarios for which the vehicle delivery networks has been designed includes
without AV, static Routing, without AV, Dynamic routine, with AV, static routine and with AV,
Dynamic routine. In order to conduct the research, the researcher has conducted secondary data
collection method. Considering the fact that the data provided by the management of the Xyz
company contains statistical information, the Quantitative data analysis method has been chosen
in order to analyze the data. the research design that has been used in order to conduct the
research is exploratory. The chief reason behind this is that the research has been performed to
explore a solution for the XYZ company and hence does not possess any hypothesis.
Framing the problem
The traditional approach that is followed by the XYZ Company in order to deliver the
vehicles to dealer within the stipulated time includes assuming constant manufacturing and
demand volumes, and uses an optimization model to minimize the total shipping and operating