Reducing Delivery and Storage Costs for Alcan Fine Coating Company

Alcan Fine Coating Company 1
Alcan Fine Coating Company
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Alcan Fine Coating Company 2
I. Executive summary
Actually the present methodology implemented by the Alcan Fine Coating Company
incorporates higher expense related with conveyance of compartments of fine grained alumina
powder. The organization comprises of three choices that can be chosen for decreasing the
conveyance and capacity costs. This research proposal breaks down the expenses and
conveyance duration provided by every option and consequently talks about the practicality of
every choice. The organization needs to choose the most achievable alternative that diminishes a
prospective expense and the conveyance time. Thus as suggested, organization consider
diminishing its delivery duration in order to gain an upper hand over its immediate rivals. Lastly
the report will outline a correlation of every single accessible option and proposal using
organization's own distribution warehouse for harboring various inventories and the utilizing of
Pro Transport networks used in making the conveyances (Purenovic, J., Mitic, V., Paunovic, V.
and Purenovic, M. , 2011).

Alcan Fine Coating Company 3
Table of Contents
I. Executive summary.......................................................................................................1
II. Background................................................................................................................1
III. Situation Analysis......................................................................................................4
IV. Alternative Proposals.................................................................................................6
V. Euro direct.................................................................................................................7
VI. Railway shipment workstations...............................................................................10
VII. Conclusion and Recommendations......................................................................12

Alcan Fine Coating Company 4
II. Background
Alcan Aluminum Limited is the second-biggest aluminum organization on the planet.
Headquartered in Montreal, Canada, Alcan has activities in about 30 nations. Alcan produces
aluminum, with around 90 percent of its incomes coming from the sale of aluminum in ingot and
manufactured shape. The organization is the best maker of level moved aluminum, the dominant
part of which is utilized to make drink jars. Alcan is associated with bauxite mining, alumina
refining, and aluminum purifying, and producing. Among this items made by Alcan are wires,
car parts, and rigid synthetic compounds. Alcan serves clients in a wide range of businesses,
including transportation, development, electrical, and bundling (Acimovic, Z., Terzic, A.,
Andric, L., Stojanovic, V. and Pavlovic, M., 2014). Alcan likewise produces hydroelectric power
and is one of the greatest worldwide recyclers of aluminum.
The utilization rate of aluminum has risen rapidly from 2002 and attained about 1,080 KT
by 2006. Towards 1990 to 2002, the utilization remained relatively dormant, with around 500-
600 KT. The key buyer ventures in Canada are control, transportation, customer durability,
bundling and development. The greatest consumption rate is power (about 44% of aggregate)
trailed by framework (17%) and transportation. Notwithstanding, universally, the example of
utilization is agreeable to transportation, fundamentally because of expansive scale aluminum
utilization by the flying space. The company Alumina business process constitutes of various
researches of fabricated products, manufacturing and recycling, aluminum smelting, bauxite
mining, and alumina refining. Moreover, the packaging processes of the company’s products
include the use of plastic bottles, cartridges and other products. With its prominence in the