SCM Globe Research Paper

This research paper presents a detailed analysis of a supply chain management simulation using the SCM Globe system. The simulation focuses on Cincinnati Seasonings, a company producing and distributing chili seasoning. The report begins by outlining the company's existing supply chain, including its factory, distribution center, and three initial stores. The baseline data, including demand, production, on-hand inventory, and maximum storage capacity for each facility, is presented. The simulation involves manipulating various parameters, such as truck capacity, delivery routes, and the number of trucks, to optimize inventory levels and reduce costs. The author documents their process, highlighting adjustments made to achieve just-in-time (JIT) delivery scheduling. The report compares results across several weeks, showing the impact of changes on inventory levels, transportation costs, and overall profitability. The author explores the effects of adding new stores and a second factory, analyzing the cost implications and the impact on JIT scheduling. The conclusion summarizes the learning experience, highlighting challenges encountered during the simulation and the overall effectiveness of the SCM Globe system in providing insights into supply chain dynamics.

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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SCM Globe Research Paper
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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SCM Globe Research Paper
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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SCM Globe Research Paper
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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SCM Globe Research Paper
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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SCM Globe Research Paper
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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SCM Globe Research Paper
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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SCM Globe Research Paper
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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SCM Globe Research Paper
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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SCM Globe Research Paper
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