MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce

MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce
SCM 850 Scotts Miracle-Gro Case Make vs. Outsource Decision Version 01-23-2023. I. Assignment Objectives: Utilize NPV to evaluate the inflows and outflows of cash for this case. This tool will assist in comparing various network design alternatives. Some form of this approach is used by almost all major companies and was a “way of life” for most of my professional career. Utilizing various frameworks, evaluate and quantify (where possible) many of the process and risk factors in a Make vs. Outsource decision. Create a three-page professional business memo, which forces teams to be succinct and concise. Some supervisors will not read beyond the first paragraph. II. Assignment Overview: Our approach will expand the NPV analysis to sensitize various variables to see its impact on your recommendation. This practitioner approach is common in many organizations. Please note that the parts of the assignment variables have been changed. Please account for these changes when you complete the assignment. Also, use my formats for Excel–headings, subheadings, etc. DO NOT USE the ones from previous courses or your work environment. You are to write a three-page (double-spaced) professional business memo that summarizes your recommendation and evaluation of this case. Please note–no Power Point Slides are required for this assignment. Since there is not much space—use it wisely! You need to employ professional language, grammar, and appropriate paragraph structure, etc. If the memo is greater than 3 pages, you will have points deducted. You can have multiple appendices (inserts); a minimum of four are required. You are to assume that you are working for a consulting firm and the “C” Suite executives at Scotts’ will evaluate this memo. Please assume you are competing against all other teams in the class for Scotts’ business. Consequently, the information submitted to us needs to be compiled in a professional, well-analyzed, and thoughtful manner. Additionally, please make sure you format all items professionally; for example, all Excel tables should print out in a landscape mode on an 8 ½ by 11 pages, all items must have titles, etc. You are competing for the Scotts’ business against the other teams in the class! The MEMO: The first paragraph should only contain the following items: A statement of the problem, goal, or objective. The second sentence or so should contain your team’s recommendation (only one recommendation and be specific) including a brief phrase or two concerning the financial impact. The final sentence of the paragraph should be a transition statement like (but do not copy this) “the remainder of this memo will help to support and discuss our recommendation.” We are structuring the first paragraph in this fashion because many supervisors will not read beyond this item, so we need to make an impact! The next set of paragraphs in the memo should support your recommendation, why it is the optimal recommendation. It should also include a review of the risks and ways to mitigate them. If you have room for additional information, “alternatives considered and rejected” may be useful. Obviously, you can mix and match these ideas in a way that fits your team—this approach is just a suggestion. Please try and incorporate/blend the answers to the questions listed below into this memo! The final summary paragraph should not only have the traditional summary information, but also some sort of an actionable sentence in it… that tries to move the process forward…. what are the “Next Steps”. Although professional memos normally start with a To, From, Subject, and Date lines–please forego these items and use the space for your analysis. Please do not use internal headings within the memo; consequently, only text should be found in the body of your report. Use the space for your analysis. Because the memo is only three-pages of text, you can utilize as many appendices (inserts) as needed (within reason)! You must also refer to all appendices within the text of the memo–no appendices unless they are mentioned in the text. All appendices must be labeled as Appendix #1, #2, etc. plus a title for each one. For example: “Appendix #1: Net Present Value Calculation for Temecula Option.” III. Assignment Formatting: (Please print before you submit to make sure it is formatted correctly.) Do not use any pdf type files in your submittals—Word or Excel only. You will have a least two documents downloaded to the drop box: The actual report document and appendices in a “Word” type file extension. An Excel Workbook showing your financial calculations. The report must be formatted for single-sided printing (no double-sided reports). Please print before you submit to make sure it is formatted correctly. All Excel spreadsheets must fit on one page and be in landscape mode. All appendices must be numbered and have a title. You cannot have more than one appendix per page. You can only use one side of the paper. The First Appendix must be a Summary Sheet (see attached example sheet for format). This appendix should include all the items on the example sheet including the comparison of the present value calculations for the two options from year 0 through year 10. (Per instructions in class.) The Second Appendix should be ONE Excel spreadsheet that should show the cash flow and NPV calculations for the Temecula Option from year 0 through year 10. Please include totals for all information and especially the NPV! The Third Appendix should be ONE Excel spreadsheet that should show the cash flow and NPV calculations for the China Option from year 0 through year 10. Please include totals for all information and especially the NPV! Utilize other appendices as needed. In addition to the Excel spreadsheet listed above, (and included in the report as a document), we also require a working copy of all your actual spreadsheets submitted in the drop box on Canvas. Add a sensitivity analysis summary sheet. Sensitivity analysis is that tool that looks at some important variable associated with the case (such as electricity costs) and increases and decreases it (maybe a 5% increase and maybe a 5% decrease) and assesses its impact on your evaluation. It creates a bracket or range around that variable. Note 1: One item you cannot sensitize for this assignment is the exchange rates (Yuan vs. Dollar). Note 2: Do not use Goal Seek for our sensitivity analysis. Did you use the memo space wisely to explain your analysis? Please make sure you cite your references in the text as you explain your analysis. No internal headers in the report. All graphs, tables, etc. should be placed in the appendices. Points will be deducted for not following formatting directions! All work must be completed in a professional manner. Please note: We do not have pre-grading of any of the assignments. IV. Helpful Hints: This information may override information from the case itself. A. General Impacts: No depreciation, taxes, or working capital to consider. Since we are looking entirely at costs, we do not include sales revenues in the NPV calculation. Also, because of only evaluating costs, the lowest Net Present Value is best! Utilize a 15% discount rate. When calculating the NPV, Year 0 will have a discount factor of 1.0. When calculating NPV, do not use the Excel NPV function. It has a few quirks associated with it. Use the NPV Table and Factors given in Module 2 Lesson 3…much easier to use and understand. No offshoring considered for this problem. B. Temecula Analysis COGS Impacts (Costs) Raw Materials–$100,000 savings in year 0 with 5% savings every year after Labor—Start with 195 hourly employees in year 0 with a 6% productivity improvement from year 1 through year 5—years 6-10—use only a 3% improvement per year. Annual pay increases of 3% starting in year 1. Starting labor costs with full benefits is $16.25/hour. Assume 40 hours a week and 50 weeks per year production schedule. Electricity—Start with a consumption of 8,000,000 KwHrs in year 0 with a 2% annual decrease in KwHrs due to efficiency improvements. The average KwHr rate is $ .16 in year 0 with a 4% annual increase. Do not forget surcharge in year 0, 1, and 2 only! Lease–$3,000,000 per year starting in year 0. SG&A Impacts (Costs) Management Costs—Assume 16 employees in year 0 with $125,000 in salary and benefits per management employee. Productivity is assumed to increase at 6% for the first 5 years and then at 3% for the last 5 years. The annual salary increase is 3% starting in year 1. Overhead Corporate–$1,000,000 per year Plant Allocation—30% of direct labor and electricity Shipping/Freight–$1,000,000 starting in year 0 with annual 3% increases. Safety stock—None Investment Impacts (Costs) Annual Capital Outlays–$400,000 per year (Note… we changed this item from the actual $500,000 stated in in the actual case.) Start Up Costs–None Additional “Scotts” People to Manage CM–None Additional “Scotts” Travel Expenses–None Replacement Molds—None here! C. China Analysis: COGS Impacts (Costs) Raw Materials–None Labor—The base starts with 195 hourly employees in year 0 with a 2% productivity improvement annually. Annual pay increases of 2% starting in year 1. Starting labor costs with full benefits are $0.91/hour. Assume 40 hours a week 50 weeks per year production schedule. Electricity—Start with a consumption of 8,000,000 KwHrs annually. The average KwHr rate is $ 0.065 in year 0 with a 5% annual increase. Lease–$200,000 per year starting in year 0. SG&A Impacts (Costs) Management Costs—Assume 16 employees in year 0 with $30,000 in salary and full benefits per management employee. Productivity is assumed to increase at 6% for the first 5 years and then at 3% for the last 5 years. The annual salary increase is 3% starting in year 1. Overhead Corporate–$1,000,000 per year Plant Allocation—50% of direct labor Note: No % of electricity cost for the allocation. CM Profit margin is 8% of total production costs and annual management labor costs. Freight–$8,000,000 starting in year 0 with annual 3% increases. Safety stock—$460,000 per year Investment Impacts (Costs) Annual Capital Outlays–$300,000 per year Start Up Costs–$4,000,000 in year 0 only (Note… we changed this item from the actual $1,000,000 stated in in the actual case.) Two additional Scott managers to oversee CM—$125, 000 each—two with benefits and an increase of 5% per year. Additional “Scotts” Travel Expenses for those two employees—$100,000 per employee with increases of 5% per year Replacement Molds—$400,000 in year 0, 5, and 10–10 molds at $40,000/ mold. Assume that currently Scotts is leasing their manufacturing facility. They have a long-term lease. To extricate themselves from the lease it has a “buyback provision. The Buyback lease fee is —$14,000,000 (Normally lease contracts have a provision to “get out of them” if you pay a certain fee–the buy-back amount is this number!) You will need to consider this item in the calculation in Year 0. Please note…this item is an outflow of dollars. V. Summary Sheet: Please note that the Excel version of this sheet is provided in Module 2 Lesson 3 under the section titled “Additional Reference Materials”. Note, the Tables listed as “Specific Cost Breakdown Over the Ten-Year Period” and “The Total Cost Comparison Over The 10 Year Period” deal with straight costs…no use of NPV here. VI. Assignment Questions: Please answer the following questions in your memo: 1. Utilize NPV as one of the tools to assist in the decision to “stay in the US” or “outsource to China.” Calculate Scotts’ NPV for each of the following two options–continue production at Temecula or outsource to China! Please note–follow the helpful hints below because some of the inputs to the problem are different from the actual case. 2. List and rank the factors that you can quantify which would most affect the project’s outcome. Complete a sensitivity analysis (+ and -) on at least ONE of these factors for each scenario, Temecula, and China. For example: Transportation cost projections Labor cost projections Safety stock implications Electrical cost assumptions Impact of a 10-year analysis Many other items! (Note: You cannot use exchange rate fluctuations of the Yuan and the dollar). 3. Assess qualitative factors that can also impact your decision utilizing one of the frameworks listed below: You must indicate which framework you have chosen. “Strategic Sourcing from Periphery to Core,” Gottfredson, etc. approach “Why Outsource?” Lynch approach “Sourcing Decisions in a Supply Chain,” Chopra approach Make vs. Buy Analysis Matrix presented by Fine in Clockspeed (from SCM 800) Some other frameworks you prefer—this item must be preapproved by me prior to submittal. Based upon Questions 1-3 above, carefully explain and outline your team’s recommendation and evaluation. VII. Grading Criteria: (Total Points 200) (Please note: The instructor reserves the right to change the rubric at his discretion) Writing assignments stress organizing thoughts in the appropriate hierarchy and sequence, selecting words for their power and expressiveness, using technical terms in appropriate contexts, and representing complex data and symbols precisely in prose. Writing assignments require the use of appropriate business language–do not use slang, unprofessional language, colloquialisms, etc. Content: Approximately _______________Out of 120 Points Total for Both Recommended Action and Analysis Recommended Action: Are the criteria for selected recommendations stated? Is the plan integrated in a logical manner and linked to the analysis? Is the action plan specific and complete? Analysis: Does the paper contain analysis of the major issues? Does the analysis incorporate concepts/techniques from the readings? Does the analysis effectively incorporate information from the case? Does the analysis show relationships among important factors? Are assumptions explicitly stated? Does the analysis isolate fundamental causes of the problems? Does the analysis contain enough detail to support recommendations, causes and effects, etc.? When the analysis is undertaken, does it use the information at its disposal correctly, thereby leading to correct answers? Did the paper correctly incorporate sensitivity analysis into it, and were the appropriate items sensitized? Quality of Report/Writing Style: Approximately _______________Out of 60 Points Memo is logically organized: Problem, recommendation, and transition in first paragraph. Body supports recommendation. Body explains alternatives considered and rejected. Summary paragraph leads to action or implementation suggestions; therefore, please include “next steps” in this location. The memo is readable and flows with continuity. Rules of grammar, punctuation, spelling, sentence construction, paragraph construction, upper/lower case usage, etc. are followed. Exhibits: Do the exhibits support and amplify/clarify the text? Do the exhibits add new information that explains new ideas? Do the exhibits represent correct information? Is the memo concise and succinct? Does the memo target the audience correctly? Overall Criteria: Approximately _______________Out of 20 Points Is the memo logically consistent and effectively structured so it sells its recommendations? Is there a high likelihood that the recommendations will achieve their intended results? Does the memo adequately and correctly address risks associated with the options? Checklist Deliverables Completed Yes/No Items to complete NPV for Temecula Need an actual Excel File in landscape mode–must all fit on 8 1/2 by 11 sheet (no pdf’s) NPV for China Need an actual Excel File in landscape mode–must all fit on 8 1/2 by 11 sheet (no pdf’s) Summary Sheet See attachment summary sheet given NPV for Temecula Sensitivity Factor #1 (+ and -) Need an actual Excel File in landscape mode–must all fit on 8 1/2 by 11 sheet (no pdf’s) NPV for China Sensitivity Factor #1 (+ and -) Need an actual Excel File in landscape mode–must all fit on 8 1/2 by 11 sheet (no pdf’s) Pick a framework utilized for qualitative impacts. Word document (no PDF’s) Cover Sheet Team name (number), each team member and email address, date, name of assignment—use attached cover sheet! Business Memo Word document utilizing structure outlined in assignment document (no PDF’s or Power Point slides) Appendices (Inserts) As needed; however, a minimum of four are required References (Citations) Word document (no PDF’s) Grading rubric Review all items (see assignment document) Helpful hints document Review all items (see assignment document) Summary Sheet for Sensitivity Analysis Word document on an 8 1/2 by 11 sheet Pledge Sheet Attach pledge sheet given in this assignment Professional Manner Is the entire document completed in a professional manner?
MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce
MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Simulation Decisions:Market Forecasting: CollaborativeCurrent Markets Deleted:New Markets Opened:NY, NJ, PAMD, VA, WV, DEKentucky,TenneseeAlabama, MississippiFloridaActive DCs:Detroit MITL4San Francisco CATL4Philadelphia PATL4Los Angeles CATL4Baltimore MDTL4Dallas TXTL4Chicago ILTL4Denver COTL4Miami FLTL4Kansas City MOTL4Minneapolis MNTL4DC Replenishment Planning:DC Replenishment Planning:Planning Method:DRPTarget DC Fill Rate:100%Time Fence:1 Month(s)Denver Plant:Denver Plant:Operating Capacity:2.1 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedHouston:0.70.70.7Baton Rouge:00.10.1Los Angeles:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.83/11/2023 Page 1/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5New Plant: New KensingtonNew Plant: New KensingtonOperating Capacity:1.5 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedPittsburgh:0.70.70.7Baton Rouge:00.10.1Baltimore:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.83/11/2023 Page 2/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Plant Location: DenverRaw Material Statistics for: Cans/BottlesMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$1.16$1.19$1.17Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares69.88%0.00%30.12%Volume3,354,24901,445,811Avg Transit Time4.010.004.04Min Transit Time2.000.002.00Max Transit Time8.000.008.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant174,982Maximum Inventory at Plant480,115Minimum Inventory at Plant0Fill Rate at the Plant99.97%Raw Material Statistics for: ChemicalsMode of Transport: CL9HoustonBaton RougeLos AngelesOrigin Price$4.05$4.05$4.10Freight to Plant0.0150.01820.0193Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares88.86%0.00%11.14%Volume1,526,2990191,371Avg Transit Time5.950.006.32Min Transit Time2.000.002.00Max Transit Time12.000.0012.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant59,961Maximum Inventory at Plant217,860Minimum Inventory at Plant0Fill Rate at the Plant89.44%3/11/2023 Page 3/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Plant Location: DenverRaw Material Statistics for: CorrugatedMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$0.72$0.73$0.75Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares71.62%3.62%24.75%Volume1,372,05469,431474,183Avg Transit Time4.004.084.08Min Transit Time2.002.002.00Max Transit Time7.006.009.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant75,997Maximum Inventory at Plant182,774Minimum Inventory at Plant0Fill Rate at the Plant99.75%3/11/2023 Page 4/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Plant Location: DenverProduction Planning and ExecutionPeriodScheduledProduced11,508,8001,272,07121,182,400906,33331,252,800922,88341,529,6001,372,14751,493,6001,303,03361,760,0001,717,26071,690,4001,620,29282,057,6002,012,13592,060,0001,991,891102,097,2001,893,332111,904,8001,519,689121,717,2001,425,203131,577,2001,249,054________________________21,831,60019,205,323Lost Production Due to RM Shortages 2,626,277 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average 205,108Maximum Inventory1,511,293Minimum Inventory2Volume shipped to DCs19,200,800Fill Rate of FG67.8685%3/11/2023 Page 5/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Plant Location: New KensingtonRaw Material Statistics for: Cans/BottlesMode of Transport: TL4PittsburghBaton RougeBaltimoreOrigin Price$1.20$1.19$1.19Freight to Plant0.00730.02840.0103Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares69.99%0.00%30.01%Volume3,001,44901,286,784Avg Transit Time3.000.003.00Min Transit Time2.000.002.00Max Transit Time4.000.004.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant158,130Maximum Inventory at Plant344,200Minimum Inventory at Plant34,355Fill Rate at the Plant100.00%Raw Material Statistics for: ChemicalsMode of Transport: CL9PittsburghBaton RougeBaltimoreOrigin Price$4.05$4.05$4.10Freight to Plant0.0060.02340.0085Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares91.86%0.00%8.14%Volume1,418,5760125,716Avg Transit Time4.980.004.87Min Transit Time2.000.002.00Max Transit Time8.000.008.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant62,258Maximum Inventory at Plant218,910Minimum Inventory at Plant0Fill Rate at the Plant90.03%3/11/2023 Page 6/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Plant Location: New KensingtonRaw Material Statistics for: CorrugatedMode of Transport: TL4PittsburghBaton RougeBaltimoreOrigin Price$0.74$0.73$0.75Freight to Plant0.00730.02840.0103Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares71.23%0.00%28.77%Volume1,221,7020493,546Avg Transit Time3.010.003.01Min Transit Time2.000.002.00Max Transit Time4.000.004.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant77,047Maximum Inventory at Plant145,251Minimum Inventory at Plant0Fill Rate at the Plant100.00%3/11/2023 Page 7/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Plant Location: New KensingtonProduction Planning and ExecutionPeriodScheduledProduced11,465,6001,304,59221,491,2001,357,21731,417,6001,167,23241,492,4001,427,65251,480,0001,327,77961,492,8001,390,63971,496,0001,333,50581,500,0001,296,33991,500,0001,428,062101,500,0001,365,175111,500,0001,308,244121,492,0001,114,406131,488,4001,332,088__________________19,316,00017,152,930Lost Production Due to RM Shortages 2,163,070 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average Inventory348,870Maximum Inventory2,612,026Minimum Inventory5Volume shipped to DCs17,152,800Fill Rate of FG20.0743%3/11/2023 Page 8/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Detroit MISupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$35,160.00Throughput:5,895,160Variable Costs:$97,623.85Avg 283,189Inv Holding Costs:$82,882.85Max 843,104Freight into DC:$95,501.59Min 0Fill Rate:94.74%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.00Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Pittsburgh PA1,104,4991,046,452$0.90633.53 daysCleveland OH1,298,5961,230,349$0.92552.64 daysBuffalo NY1,198,2121,135,241$0.90433.62 daysHuntington WVA355,922337,217$0.89544.04 daysDetroit MI1,550,5071,469,021$0.93582.16 daysBristol TN27,51326,067$0.87584.97 daysColumbus OH686,914650,814$0.91423.16 days3/11/2023 Page 9/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: San Francisco CASupplying Plant: DenverCost InformationInventory InformationFixed Costs:$34,440.00Throughput:3,502,187Variable Costs:$68,292.64Avg 268,081Inv Holding Costs:$78,390.24Max 513,737Freight into DC:$104,225.08Min 0Fill Rate:99.82%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.76Max Transit Time:6.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.San Francisco CA1,557,1211,554,344$0.89783.83 daysSeattle WA1,014,9681,013,157$0.84836.18 daysPortland OR681,704680,488$0.85515.85 daysSpokane WA254,652254,197$0.84616.29 days3/11/2023 Page 10/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Philadelphia PASupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$29,880.00Throughput:4,014,236Variable Costs:$73,942.24Avg 234,055Inv Holding Costs:$68,713.35Max 688,333Freight into DC:$77,073.34Min 0Fill Rate:96.60%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.02Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.New York City2,671,9112,581,081$0.90753.25 daysAlbany NY169,062163,315$0.88954.09 daysScranto PA221,659214,124$0.90073.56 daysPhiladelphia PA899,768869,181$0.91452.92 daysSyracuse NY193,099186,535$0.88634.24 days3/11/2023 Page 11/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Los Angeles CASupplying Plant: DenverCost InformationInventory InformationFixed Costs:$31,180.00Throughput:3,327,938Variable Costs:$62,498.68Avg 253,671Inv Holding Costs:$73,847.82Max 458,115Freight into DC:$84,662.74Min 0Fill Rate:99.84%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Los Angeles CA3,333,1873,327,938$0.90283.83 days3/11/2023 Page 12/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Baltimore MDSupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$32,540.00Throughput:1,962,293Variable Costs:$33,005.77Avg 137,060Inv Holding Costs:$40,262.30Max 465,350Freight into DC:$38,853.40Min 0Fill Rate:96.17%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.00Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Harrisburg PA180,569173,654$0.91093.13 daysRichmond VA241,875232,613$0.90103.60 daysNorfolk VA161,810155,614$0.89503.88 daysRoanoke VA141,595136,172$0.88584.31 daysBaltimore MD1,092,1661,050,342$0.91552.92 daysKnoxville TN170,209163,691$0.89004.11 daysChattanooga TN52,20650,207$0.87924.62 days3/11/2023 Page 13/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Dallas TXSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,960.00Throughput:4,480,809Variable Costs:$50,543.52Avg 321,159Inv Holding Costs:$92,199.94Max 683,063Freight into DC:$53,769.71Min 0Fill Rate:99.84%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.37Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Birmingham AL411,482410,843$0.90484.73 daysMobile AL57,90557,815$0.90994.49 daysHouston TX643,671642,670$0.94362.90 daysDallas TX1,212,5741,210,689$1.00361.00 daysSan Antonio TX122,208122,018$0.93473.32 daysShreveport LA124,493124,300$0.95192.52 daysNew Orleans LA303,959303,487$0.92024.00 daysLittle Rock AR154,651154,411$0.93603.26 daysMemphis TN423,138422,481$0.92223.90 daysNashville TN330,582330,068$0.90084.91 daysOklahoma City OK703,122702,029$0.94712.74 days3/11/2023 Page 14/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Chicago ILSupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$38,000.00Throughput:3,398,406Variable Costs:$53,490.91Avg 281,398Inv Holding Costs:$82,409.53Max 1,302,827Freight into DC:$57,093.22Min 0Fill Rate:95.24%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.00Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Chicago IL1,098,7621,046,458$0.96281.00 daysPeoria IL410,340390,807$0.93922.01 daysFort Wayne IN156,183148,748$0.93642.14 daysIndianapolis IN329,169313,500$0.93122.38 daysEvansville IN163,054155,292$0.90933.40 daysMilwaukee WI568,877541,797$0.94761.63 daysLouisville KY276,171263,024$0.90893.42 daysCincinnati OH565,709538,779$0.91283.24 days3/11/2023 Page 15/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Denver COSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$21,280.00Throughput:4,445,346Variable Costs:$35,562.76Avg 307,342Inv Holding Costs:$87,259.46Max 689,700Freight into DC:$6,401.30Min 0Fill Rate:99.71%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.78Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.El Paso TX284,278283,464$0.92284.53 daysAlbuquerque NM62,46362,284$0.94503.48 daysPhoenix AZ898,945896,372$0.87906.62 daysSalt Lake City UT845,767843,346$0.94153.65 daysButte MT325,836324,903$0.87946.60 daysDenver CO2,040,8182,034,976$0.97841.94 days3/11/2023 Page 16/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Miami FLSupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$37,720.00Throughput:1,253,982Variable Costs:$19,637.35Avg 235,816Inv Holding Costs:$69,569.72Max 1,089,158Freight into DC:$30,095.56Min 0Fill Rate:81.90%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.01Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Jacksonville FL344,645282,249$0.90123.44 daysTampa FL610,794500,214$0.91492.81 daysMiami FL575,753471,518$0.97271.00 days3/11/2023 Page 17/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Kansas City MOSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$34,000.00Throughput:2,795,067Variable Costs:$39,689.94Avg 209,782Inv Holding Costs:$60,693.30Max 523,670Freight into DC:$54,336.09Min 0Fill Rate:99.33%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.St Louis MO408,661405,930$0.92893.10 daysDes Moines IA509,175505,773$0.94082.55 daysOmaha NE671,897667,407$0.94302.45 daysKansas City MO871,352865,529$0.97611.00 daysWichita KS352,786350,428$0.94132.53 days3/11/2023 Page 18/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Distribution Center StatisticsDC Location: Minneapolis MNSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,000.00Throughput:813,742Variable Costs:$11,229.64Avg 90,533Inv Holding Costs:$26,280.79Max 357,155Freight into DC:$18,455.67Min 0Fill Rate:98.17%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Minneapolis MN828,936813,742$0.97331.00 days3/11/2023 Page 19/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5Activity Based Costs and PerformanceTotal CostsUnit CostsAverage Time (days)Plant In-boundPurchase Costs$26,610,757.58$0.7415Freight Costs$194,010.16$0.0054In Transit to Plant$114,761.61$0.00324.16Raw Mtl. Holding$272,941.60$0.00769.90Production RelatedPlant Fixed Cost$7,900,000.00$0.2201Plant Var. Cost$7,090,608.14$0.1976WIP Holding$353,342.58$0.009810.00Plant Out-boundPlant Warehouse Fix Cost $463,000.00$0.0129Plant Warehouse Var Cost $708,940.57$0.0198Plant Warehouse Holding $158,555.84$0.00443.96In Transit Holding to DC $90,245.58$0.00252.31DistributionDC Freight In$620,467.71$0.0173DC Fixed$361,160.00$0.0101DC Var$545,517.31$0.0152DC Holding$762,509.31$0.021219.16Freight to Customer$3,332,206.12$0.0928In Transit to Customer$131,157.07$0.00373.18AdministrativeControl System Costs–Base$100,000.00$0.0028Control System Costs–DRP$40,000.00$0.0011Control System Costs–Colb$25,000.00$0.0007————–Totals$49,875,181.18$1.385152.673/11/2023 Page 20/21 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 5SUPPLY CHAIN FINANCIAL STATEMENTSSupply Chain Income Statement (does not include Marketing and G & A)Total Annual DollarsDollars / UnitTotal Sales$71,778,330.06$2.0000Total Fixed$8,889,160.00$0.2477Total Variable$39,102,507.59$1.0895Total Inventory $1,883,513.59$0.0525—————–Profit Contribution $21,903,148.88$0.6103Supply Chain Assets EmployedPlants$21,800,000.00Plant Warehouse$1,725,000.00Distribution $3,611,600.00Inventory$6,278,378.64—————–Total Assets Employed$33,414,978.64SUPPLY CHAIN PERFORMANCE MEASURESCustomer ServiceTargeted Fill Rate:100.00%Achieved Fill Rate97.13%Order Cycle Time to Customer (days)3.18FlexibilityAverage Time through Supply Chain (days)52.67Average Production Capacity Utilization77.69%FinancialSupply Chain Profit Margin30.52%Supply Chain Return on Assets65.55%3/11/2023 Page 21/21
MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce
MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Simulation Decisions:Market Forecasting: CollaborativeCurrent Markets Deleted:New Markets Opened:Alabama, MississippiActive DCs:Detroit MITL4Los Angeles CATL4Dallas TXTL4Chicago ILTL4Denver COTL4Minneapolis MNTL4DC Replenishment Planning:DC Replenishment Planning:Planning Method:DRPTarget DC Fill Rate:100%Time Fence:1 Month(s)Denver Plant:Denver Plant:Operating Capacity:2.1 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedHouston:0.70.70.7Baton Rouge:00.10.1Los Angeles:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.8New Plant: New KensingtonNew Plant: New KensingtonOperating Capacity:1.5 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedPittsburgh:0.70.70.7Baton Rouge:00.10.1Baltimore:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.83/11/2023 Page 1/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Plant Location: DenverRaw Material Statistics for: Cans/BottlesMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$1.16$1.19$1.17Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares69.99%0.00%30.01%Volume2,761,87401,184,027Avg Transit Time4.010.004.01Min Transit Time2.000.002.00Max Transit Time8.000.008.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant185,195Maximum Inventory at Plant397,861Minimum Inventory at Plant0Fill Rate at the Plant99.99%Raw Material Statistics for: ChemicalsMode of Transport: CL9HoustonBaton RougeLos AngelesOrigin Price$4.05$4.05$4.10Freight to Plant0.0150.01820.0193Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares93.92%0.00%6.08%Volume1,180,313076,434Avg Transit Time5.960.006.26Min Transit Time2.000.002.00Max Transit Time12.000.0011.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant42,146Maximum Inventory at Plant210,460Minimum Inventory at Plant0Fill Rate at the Plant79.62%3/11/2023 Page 2/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Plant Location: DenverRaw Material Statistics for: CorrugatedMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$0.72$0.73$0.75Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares74.80%0.27%24.93%Volume1,180,0844,257393,361Avg Transit Time4.004.504.00Min Transit Time2.003.002.00Max Transit Time7.006.008.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant81,373Maximum Inventory at Plant171,278Minimum Inventory at Plant0Fill Rate at the Plant99.95%3/11/2023 Page 3/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Plant Location: DenverProduction Planning and ExecutionPeriodScheduledProduced11,554,400984,84721,230,400812,36531,241,600939,99041,224,000920,54951,387,200944,24061,778,8001,678,21171,439,2001,105,59981,902,4001,886,93791,922,0001,691,574101,892,0001,659,497111,555,2001,048,554121,584,4001,047,676131,611,2001,064,775________________________20,322,80015,784,815Lost Production Due to RM Shortages 4,537,985 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average 90,695Maximum Inventory1,256,815Minimum Inventory9Volume shipped to DCs15,784,800Fill Rate of FG24.0922%3/11/2023 Page 4/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Plant Location: New KensingtonRaw Material Statistics for: Cans/BottlesMode of Transport: TL4PittsburghBaton RougeBaltimoreOrigin Price$1.20$1.19$1.19Freight to Plant0.00730.02840.0103Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares69.44%0.00%30.56%Volume1,152,9180507,455Avg Transit Time3.000.003.00Min Transit Time2.000.002.00Max Transit Time4.000.004.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant91,441Maximum Inventory at Plant204,374Minimum Inventory at Plant0Fill Rate at the Plant99.96%Raw Material Statistics for: ChemicalsMode of Transport: CL9PittsburghBaton RougeBaltimoreOrigin Price$4.05$4.05$4.10Freight to Plant0.0060.02340.0085Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares100.00%0.00%0.00%Volume567,56900Avg Transit Time5.030.000.00Min Transit Time3.000.000.00Max Transit Time8.000.000.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant39,613Maximum Inventory at Plant146,550Minimum Inventory at Plant0Fill Rate at the Plant85.42%3/11/2023 Page 5/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Plant Location: New KensingtonRaw Material Statistics for: CorrugatedMode of Transport: TL4PittsburghBaton RougeBaltimoreOrigin Price$0.74$0.73$0.75Freight to Plant0.00730.02840.0103Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares96.24%0.00%3.76%Volume586,291022,932Avg Transit Time3.010.003.09Min Transit Time2.000.002.00Max Transit Time4.000.004.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant27,058Maximum Inventory at Plant89,147Minimum Inventory at Plant0Fill Rate at the Plant91.69%3/11/2023 Page 6/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Plant Location: New KensingtonProduction Planning and ExecutionPeriodScheduledProduced1640,000420,3102544,000397,7933457,600268,2564606,400541,0605550,400400,6766675,200580,9587660,800559,5168752,000678,3289888,000854,93210756,800615,56511689,600441,44612681,600519,69313582,400365,664__________________8,484,8006,644,195Lost Production Due to RM Shortages 1,840,605 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average Inventory54,571Maximum Inventory584,890Minimum Inventory28Volume shipped to DCs6,648,800Fill Rate of FG22.9478%3/11/2023 Page 7/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Distribution Center StatisticsDC Location: Detroit MISupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$35,160.00Throughput:3,340,302Variable Costs:$55,315.39Avg 211,678Inv Holding Costs:$60,079.70Max 473,679Freight into DC:$54,112.89Min 0Fill Rate:99.59%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.00Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Cleveland OH1,239,5231,234,459$0.95502.64 daysDetroit MI1,479,9741,473,928$0.96542.16 daysColumbus OH634,507631,915$0.94373.16 days3/11/2023 Page 8/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Distribution Center StatisticsDC Location: Los Angeles CASupplying Plant: DenverCost InformationInventory InformationFixed Costs:$31,180.00Throughput:4,912,184Variable Costs:$92,250.81Avg 319,102Inv Holding Costs:$89,362.20Max 660,534Freight into DC:$124,965.95Min 0Fill Rate:99.77%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.37Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Los Angeles CA2,942,5872,935,753$0.93973.83 daysSan Francisco CA1,369,1261,365,946$0.90635.41 daysPortland OR611,905610,484$0.88206.58 days3/11/2023 Page 9/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Distribution Center StatisticsDC Location: Dallas TXSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,960.00Throughput:3,283,718Variable Costs:$37,040.34Avg 237,346Inv Holding Costs:$65,510.19Max 576,260Freight into DC:$39,404.62Min 0Fill Rate:99.70%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.40Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Birmingham AL364,680363,600$0.94174.73 daysMobile AL51,51351,360$0.94684.49 daysHouston TX560,912559,251$0.98062.90 daysDallas TX1,060,6281,057,487$1.04051.00 daysSan Antonio TX106,495106,180$0.97163.32 daysShreveport LA112,870112,536$0.98882.52 daysNew Orleans LA270,404269,604$0.95714.00 daysLittle Rock AR138,100137,691$0.97293.26 daysOklahoma City OK627,869626,010$0.98402.74 days3/11/2023 Page 10/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Distribution Center StatisticsDC Location: Chicago ILSupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$38,000.00Throughput:3,411,195Variable Costs:$53,692.21Avg 238,970Inv Holding Costs:$67,868.78Max 573,410Freight into DC:$57,308.08Min 0Fill Rate:99.08%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.01Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Chicago IL1,039,5801,029,977$0.99231.00 daysPeoria IL388,238384,652$0.96872.01 daysFort Wayne IN147,770146,405$0.96592.14 daysIndianapolis IN311,439308,563$0.96072.38 daysEvansville IN154,271152,846$0.93883.40 daysMilwaukee WI524,877520,029$0.97711.63 daysSt Louis MO358,857355,542$0.93993.35 daysCincinnati OH517,965513,181$0.94233.24 days3/11/2023 Page 11/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Distribution Center StatisticsDC Location: Denver COSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$21,280.00Throughput:6,712,688Variable Costs:$53,701.50Avg 432,946Inv Holding Costs:$118,126.30Max 1,069,007Freight into DC:$9,666.27Min 0Fill Rate:99.59%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.78Max Transit Time:6.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Omaha NE591,034588,599$0.96674.20 daysKansas City MO766,484763,326$0.95964.53 daysWichita KS315,074313,776$0.97193.96 daysEl Paso TX243,128242,127$0.95974.53 daysAlbuquerque NM53,42253,201$0.98193.48 daysPhoenix AZ768,821765,654$0.91596.62 daysSalt Lake City UT723,341720,361$0.97843.65 daysSeattle WA921,822918,024$0.88428.14 daysSpokane WA231,282230,329$0.88428.14 daysButte MT292,710291,504$0.91636.60 daysDenver CO1,833,3401,825,787$1.01531.94 days3/11/2023 Page 12/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Distribution Center StatisticsDC Location: Minneapolis MNSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,000.00Throughput:1,125,899Variable Costs:$15,537.41Avg 153,398Inv Holding Costs:$42,831.03Max 902,924Freight into DC:$25,535.39Min 0Fill Rate:91.86%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Minneapolis MN768,323705,771$1.01021.00 daysDes Moines IA457,364420,128$0.96303.10 days3/11/2023 Page 13/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3Activity Based Costs and PerformanceTotal CostsUnit CostsAverage Time (days)Plant In-boundPurchase Costs$15,567,605.65$0.6832Freight Costs$131,249.50$0.0058In Transit to Plant$64,505.05$0.00284.13Raw Mtl. Holding$188,824.06$0.008312.62Production RelatedPlant Fixed Cost$7,900,000.00$0.3467Plant Var. Cost$4,401,254.36$0.1932WIP Holding$208,711.37$0.009210.00Plant Out-boundPlant Warehouse Fix Cost $413,000.00$0.0181Plant Warehouse Var Cost $411,489.10$0.0181Plant Warehouse Holding $39,929.95$0.00181.68In Transit Holding to DC $57,304.44$0.00252.42DistributionDC Freight In$310,993.19$0.0136DC Fixed$192,580.00$0.0085DC Var$307,537.66$0.0135DC Holding$443,778.19$0.019518.47Freight to Customer$2,267,178.72$0.0995In Transit to Customer$85,209.16$0.00373.49AdministrativeControl System Costs–Base$100,000.00$0.0044Control System Costs–DRP$40,000.00$0.0018Control System Costs–Colb$25,000.00$0.0011————–Totals$33,156,150.41$1.447952.833/11/2023 Page 14/15 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 3SUPPLY CHAIN FINANCIAL STATEMENTSSupply Chain Income Statement (does not include Marketing and G & A)Total Annual DollarsDollars / UnitTotal Sales$45,571,969.90$2.0000Total Fixed$8,670,580.00$0.3805Total Variable$23,397,308.19$1.0268Total Inventory $1,088,262.22$0.0478—————–Profit Contribution $12,415,819.49$0.5449Supply Chain Assets EmployedPlants$21,800,000.00Plant Warehouse$1,530,000.00Distribution $1,925,800.00Inventory$3,627,540.74—————–Total Assets Employed$28,883,340.74SUPPLY CHAIN PERFORMANCE MEASURESCustomer ServiceTargeted Fill Rate:100.00%Achieved Fill Rate99.15%Order Cycle Time to Customer (days)3.49FlexibilityAverage Time through Supply Chain (days)52.83Average Production Capacity Utilization47.93%FinancialSupply Chain Profit Margin27.24%Supply Chain Return on Assets42.99%3/11/2023 Page 15/15
MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce
MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Simulation Decisions:Market Forecasting: CollaborativeCurrent Markets Deleted:New Markets Opened:NY, NJ, PAAlabama, MississippiActive DCs:Detroit MITL4Philadelphia PATL4Los Angeles CATL4Baltimore MDTL4Dallas TXTL4Chicago ILTL4Denver COTL4Minneapolis MNTL4DC Replenishment Planning:DC Replenishment Planning:Planning Method:DRPTarget DC Fill Rate:100%Time Fence:1 Month(s)Denver Plant:Denver Plant:Operating Capacity:2.1 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedHouston:0.70.70.7Baton Rouge:00.10.1Los Angeles:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.8New Plant: New KensingtonNew Plant: New KensingtonOperating Capacity:1.5 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedPittsburgh:0.70.70.7Baton Rouge:00.10.1Baltimore:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.83/11/2023 Page 1/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Plant Location: DenverRaw Material Statistics for: Cans/BottlesMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$1.16$1.19$1.17Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares70.07%0.00%29.93%Volume2,947,35301,258,662Avg Transit Time4.010.004.03Min Transit Time2.000.002.00Max Transit Time8.000.008.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant176,151Maximum Inventory at Plant504,398Minimum Inventory at Plant0Fill Rate at the Plant99.96%Raw Material Statistics for: ChemicalsMode of Transport: CL9HoustonBaton RougeLos AngelesOrigin Price$4.05$4.05$4.10Freight to Plant0.0150.01820.0193Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares94.67%0.00%5.33%Volume1,346,221075,801Avg Transit Time5.960.006.20Min Transit Time2.000.002.00Max Transit Time12.000.0011.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant46,459Maximum Inventory at Plant214,810Minimum Inventory at Plant0Fill Rate at the Plant84.49%3/11/2023 Page 2/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Plant Location: DenverRaw Material Statistics for: CorrugatedMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$0.72$0.73$0.75Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares72.87%1.71%25.42%Volume1,223,77328,785426,840Avg Transit Time4.004.164.06Min Transit Time2.003.002.00Max Transit Time7.006.008.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant77,619Maximum Inventory at Plant190,935Minimum Inventory at Plant0Fill Rate at the Plant99.78%3/11/2023 Page 3/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Plant Location: DenverProduction Planning and ExecutionPeriodScheduledProduced11,406,8001,032,78621,065,600775,21731,145,600916,81041,241,600942,24851,467,2001,190,61861,667,2001,489,19471,589,6001,492,32581,794,4001,764,89092,021,2001,945,446101,920,0001,670,289111,648,4001,042,010121,724,8001,121,776131,770,8001,446,746________________________20,463,20016,830,354Lost Production Due to RM Shortages 3,632,846 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average 129,445Maximum Inventory1,339,289Minimum Inventory3Volume shipped to DCs16,825,600Fill Rate of FG38.6412%3/11/2023 Page 4/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Plant Location: New KensingtonRaw Material Statistics for: Cans/BottlesMode of Transport: TL4PittsburghBaton RougeBaltimoreOrigin Price$1.20$1.19$1.19Freight to Plant0.00730.02840.0103Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares69.98%0.00%30.02%Volume2,282,4170978,984Avg Transit Time3.000.003.01Min Transit Time2.000.002.00Max Transit Time4.000.004.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant174,589Maximum Inventory at Plant319,165Minimum Inventory at Plant19,868Fill Rate at the Plant100.00%Raw Material Statistics for: ChemicalsMode of Transport: CL9PittsburghBaton RougeBaltimoreOrigin Price$4.05$4.05$4.10Freight to Plant0.0060.02340.0085Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares99.87%0.00%0.13%Volume1,053,22801,404Avg Transit Time4.980.005.00Min Transit Time2.000.005.00Max Transit Time8.000.005.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant36,984Maximum Inventory at Plant181,410Minimum Inventory at Plant0Fill Rate at the Plant80.84%3/11/2023 Page 5/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Plant Location: New KensingtonRaw Material Statistics for: CorrugatedMode of Transport: TL4PittsburghBaton RougeBaltimoreOrigin Price$0.74$0.73$0.75Freight to Plant0.00730.02840.0103Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares74.71%0.00%25.29%Volume974,0240329,756Avg Transit Time3.010.003.00Min Transit Time2.000.002.00Max Transit Time4.000.004.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant77,057Maximum Inventory at Plant151,464Minimum Inventory at Plant0Fill Rate at the Plant99.94%3/11/2023 Page 6/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Plant Location: New KensingtonProduction Planning and ExecutionPeriodScheduledProduced11,304,000888,90221,089,200798,3263964,800817,7804966,400831,10851,044,400847,90961,221,600942,80371,345,6001,280,61681,377,2001,188,16691,486,4001,382,449101,500,0001,185,111111,500,000991,905121,453,600939,217131,412,800951,314__________________16,666,00013,045,606Lost Production Due to RM Shortages 3,620,394 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average Inventory101,506Maximum Inventory1,047,357Minimum Inventory2Volume shipped to DCs13,045,600Fill Rate of FG16.6503%3/11/2023 Page 7/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Detroit MISupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$35,160.00Throughput:5,657,408Variable Costs:$93,686.68Avg 328,864Inv Holding Costs:$92,531.88Max 688,856Freight into DC:$91,650.01Min 0Fill Rate:99.43%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.00Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Pittsburgh PA1,073,3611,067,203$0.94403.53 daysCleveland OH1,269,3511,262,069$0.96312.64 daysBuffalo NY1,171,2281,164,509$0.94203.62 daysDetroit MI1,515,5891,506,894$0.97352.16 daysColumbus OH660,522656,732$0.95193.16 days3/11/2023 Page 8/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Philadelphia PASupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$29,880.00Throughput:4,021,598Variable Costs:$74,077.83Avg 288,168Inv Holding Costs:$81,340.58Max 723,983Freight into DC:$77,214.68Min 0Fill Rate:99.46%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.02Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.New York City2,599,8902,585,815$0.94523.25 daysAlbany NY164,505163,614$0.92724.09 daysScranto PA215,684214,517$0.93843.56 daysPhiladelphia PA875,515870,775$0.95222.92 daysSyracuse NY187,894186,877$0.92404.24 days3/11/2023 Page 9/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Los Angeles CASupplying Plant: DenverCost InformationInventory InformationFixed Costs:$31,180.00Throughput:5,227,325Variable Costs:$98,169.16Avg 353,230Inv Holding Costs:$100,897.16Max 695,927Freight into DC:$132,983.14Min 0Fill Rate:99.71%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Los Angeles CA3,137,2463,128,089$0.92113.83 daysSan Francisco CA1,459,6971,455,436$0.88765.41 daysPortland OR645,683643,799$0.86336.58 days3/11/2023 Page 10/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Baltimore MDSupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$32,540.00Throughput:170,553Variable Costs:$2,868.70Avg 39,164Inv Holding Costs:$11,061.80Max 116,146Freight into DC:$3,376.94Min 0Fill Rate:99.56%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.00Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Harrisburg PA171,311170,553$0.94863.13 days3/11/2023 Page 11/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Dallas TXSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,960.00Throughput:3,530,185Variable Costs:$39,820.48Avg 254,910Inv Holding Costs:$71,785.06Max 520,411Freight into DC:$42,362.22Min 0Fill Rate:99.61%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.37Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Birmingham AL391,500389,958$0.92304.73 daysMobile AL55,19754,979$0.92814.49 daysHouston TX607,266604,875$0.96192.90 daysDallas TX1,146,1351,141,621$1.02181.00 daysSan Antonio TX115,296114,842$0.95293.32 daysShreveport LA119,801119,330$0.97012.52 daysNew Orleans LA289,744288,603$0.93844.00 daysLittle Rock AR147,697147,116$0.95423.26 daysOklahoma City OK671,506668,861$0.96542.74 days3/11/2023 Page 12/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Chicago ILSupplying Plant: New KensingtonCost InformationInventory InformationFixed Costs:$38,000.00Throughput:3,365,774Variable Costs:$52,977.29Avg 293,083Inv Holding Costs:$82,516.90Max 1,123,374Freight into DC:$56,545.01Min 0Fill Rate:93.95%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.00Max Transit Time:3.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Chicago IL1,074,5671,009,553$1.00051.00 daysPeoria IL401,304377,025$0.97692.01 daysFort Wayne IN152,744143,502$0.97412.14 daysIndianapolis IN321,921302,444$0.96892.38 daysEvansville IN159,463149,815$0.94703.40 daysMilwaukee WI549,403516,162$0.98531.63 daysSt Louis MO378,873355,950$0.94813.35 daysCincinnati OH544,251511,323$0.95053.24 days3/11/2023 Page 13/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Denver COSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$21,280.00Throughput:7,035,088Variable Costs:$56,280.71Avg 466,451Inv Holding Costs:$129,879.36Max 1,063,874Freight into DC:$10,130.53Min 0Fill Rate:99.69%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.77Max Transit Time:6.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Omaha NE619,206617,266$0.94804.20 daysKansas City MO803,020800,504$0.94104.53 daysWichita KS327,597326,571$0.95323.96 daysEl Paso TX257,847257,039$0.94114.53 daysAlbuquerque NM56,65656,478$0.96333.48 daysPhoenix AZ815,366812,811$0.89736.62 daysSalt Lake City UT767,132764,729$0.95983.65 daysSeattle WA967,588964,556$0.86568.14 daysSpokane WA242,764242,004$0.86568.14 daysButte MT302,894301,945$0.89776.60 daysDenver CO1,897,1281,891,185$0.99661.94 days3/11/2023 Page 14/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Distribution Center StatisticsDC Location: Minneapolis MNSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,000.00Throughput:1,251,216Variable Costs:$17,266.78Avg 127,293Inv Holding Costs:$36,254.74Max 816,573Freight into DC:$28,377.59Min 0Fill Rate:94.23%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.37Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Minneapolis MN832,327784,326$0.99151.00 daysDes Moines IA495,464466,891$0.94443.10 days3/11/2023 Page 15/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4Activity Based Costs and PerformanceTotal CostsUnit CostsAverage Time (days)Plant In-boundPurchase Costs$21,020,118.18$0.6947Freight Costs$160,979.16$0.0053In Transit to Plant$87,756.19$0.00294.13Raw Mtl. Holding$223,049.32$0.007411.84Production RelatedPlant Fixed Cost$7,900,000.00$0.2611Plant Var. Cost$5,856,967.91$0.1936WIP Holding$280,761.26$0.009310.00Plant Out-boundPlant Warehouse Fix Cost $463,000.00$0.0153Plant Warehouse Var Cost $582,534.81$0.0193Plant Warehouse Holding $64,054.28$0.00212.01In Transit Holding to DC $74,491.51$0.00252.34DistributionDC Freight In$442,640.11$0.0146DC Fixed$255,000.00$0.0084DC Var$435,147.63$0.0144DC Holding$606,267.49$0.0218.72Freight to Customer$3,009,214.75$0.0994In Transit to Customer$114,446.52$0.00383.48AdministrativeControl System Costs–Base$100,000.00$0.0033Control System Costs–DRP$40,000.00$0.0013Control System Costs–Colb$25,000.00$0.0008————–Totals$41,741,429.12$1.37452.523/11/2023 Page 16/17 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 4SUPPLY CHAIN FINANCIAL STATEMENTSSupply Chain Income Statement (does not include Marketing and G & A)Total Annual DollarsDollars / UnitTotal Sales$60,518,293.95$2.0000Total Fixed$8,783,000.00$0.2903Total Variable$31,507,602.55$1.0413Total Inventory $1,450,826.56$0.0479—————–Profit Contribution $18,776,864.83$0.6205Supply Chain Assets EmployedPlants$21,800,000.00Plant Warehouse$1,725,000.00Distribution $2,550,000.00Inventory$4,836,088.55—————–Total Assets Employed$30,911,088.55SUPPLY CHAIN PERFORMANCE MEASURESCustomer ServiceTargeted Fill Rate:100.00%Achieved Fill Rate98.70%Order Cycle Time to Customer (days)3.48FlexibilityAverage Time through Supply Chain (days)52.52Average Production Capacity Utilization63.84%FinancialSupply Chain Profit Margin31.03%Supply Chain Return on Assets60.74%3/11/2023 Page 17/17
MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce
MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Simulation Decisions:Market Forecasting: CollaborativeCurrent Markets Deleted:New Markets Opened:Alabama, MississippiActive DCs:Detroit MITL4Los Angeles CATL4Dallas TXTL4Chicago ILTL4Denver COTL4Minneapolis MNTL4DC Replenishment Planning:DC Replenishment Planning:Planning Method:DRPTarget DC Fill Rate:100%Time Fence:1 Month(s)Denver Plant:Denver Plant:Operating Capacity:2.1 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedHouston:0.70.70.7Baton Rouge:00.10.1Los Angeles:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.83/11/2023 Page 1/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Plant Location: DenverRaw Material Statistics for: Cans/BottlesMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$1.16$1.19$1.17Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares70.02%0.00%29.98%Volume3,747,12901,604,734Avg Transit Time4.010.004.04Min Transit Time2.000.002.00Max Transit Time8.000.008.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant168,942Maximum Inventory at Plant425,726Minimum Inventory at Plant0Fill Rate at the Plant100.00%Raw Material Statistics for: ChemicalsMode of Transport: CL9HoustonBaton RougeLos AngelesOrigin Price$4.05$4.05$4.10Freight to Plant0.0150.01820.0193Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares82.40%0.00%17.60%Volume1,682,4140359,274Avg Transit Time5.940.006.34Min Transit Time2.000.002.00Max Transit Time12.000.0012.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant76,345Maximum Inventory at Plant228,360Minimum Inventory at Plant0Fill Rate at the Plant95.37%3/11/2023 Page 2/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Plant Location: DenverRaw Material Statistics for: CorrugatedMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$0.72$0.73$0.75Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares70.91%6.53%22.56%Volume1,515,589139,545482,063Avg Transit Time4.004.024.09Min Transit Time2.002.002.00Max Transit Time7.006.009.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant70,810Maximum Inventory at Plant177,541Minimum Inventory at Plant0Fill Rate at the Plant99.83%3/11/2023 Page 3/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Plant Location: DenverProduction Planning and ExecutionPeriodScheduledProduced11,443,2001,325,10521,043,200916,71431,259,2001,167,40741,384,0001,314,31751,552,4001,545,46462,060,0002,001,69972,029,6001,973,87582,096,4002,014,36392,078,8002,033,145102,090,8001,849,243112,097,2001,919,947121,932,0001,745,498131,691,2001,601,199________________________22,758,00021,407,975Lost Production Due to RM Shortages 1,350,025 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average 428,301Maximum Inventory2,136,009Minimum Inventory9Volume shipped to DCs21,407,200Fill Rate of FG81.024%3/11/2023 Page 4/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Detroit MISupplying Plant: DenverCost InformationInventory InformationFixed Costs:$35,160.00Throughput:2,646,643Variable Costs:$43,828.42Avg 212,525Inv Holding Costs:$63,402.68Max 397,766Freight into DC:$71,459.37Min 0Fill Rate:99.91%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.79Max Transit Time:6.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Cleveland OH1,207,3651,206,317$0.90662.64 daysDetroit MI1,441,5781,440,327$0.91702.16 days3/11/2023 Page 5/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Los Angeles CASupplying Plant: DenverCost InformationInventory InformationFixed Costs:$31,180.00Throughput:4,596,786Variable Costs:$86,327.64Avg 347,455Inv Holding Costs:$103,493.66Max 652,671Freight into DC:$116,942.23Min 0Fill Rate:99.80%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Los Angeles CA2,749,1602,743,718$0.88033.83 daysSan Francisco CA1,279,1281,276,596$0.84695.41 daysPortland OR577,615576,471$0.82266.58 days3/11/2023 Page 6/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Dallas TXSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,960.00Throughput:3,088,769Variable Costs:$34,841.32Avg 250,896Inv Holding Costs:$73,720.99Max 472,868Freight into DC:$37,065.23Min 0Fill Rate:99.77%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.37Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Birmingham AL343,603342,822$0.88234.73 daysMobile AL48,62748,516$0.88744.49 daysHouston TX524,053522,861$0.92122.90 daysDallas TX992,784990,526$0.98111.00 daysSan Antonio TX99,49799,271$0.91223.32 daysShreveport LA107,562107,317$0.92942.52 daysNew Orleans LA255,257254,676$0.89774.00 daysLittle Rock AR130,610130,313$0.91353.26 daysOklahoma City OK593,818592,467$0.92462.74 days3/11/2023 Page 7/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Chicago ILSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$38,000.00Throughput:3,912,212Variable Costs:$61,578.21Avg 303,533Inv Holding Costs:$90,006.74Max 575,596Freight into DC:$82,156.45Min 0Fill Rate:99.81%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.27Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Chicago IL1,012,9071,010,941$0.95051.00 daysPeoria IL378,277377,543$0.92692.01 daysFort Wayne IN143,979143,699$0.92412.14 daysIndianapolis IN303,449302,860$0.91892.38 daysEvansville IN150,313150,021$0.89713.40 daysMilwaukee WI505,023504,043$0.93541.63 daysSt Louis MO342,324341,659$0.89823.35 daysColumbus OH587,083585,944$0.89543.48 daysCincinnati OH496,465495,502$0.90053.24 days3/11/2023 Page 8/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Denver COSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$21,280.00Throughput:6,359,294Variable Costs:$50,874.35Avg 460,440Inv Holding Costs:$133,832.66Max 1,145,917Freight into DC:$9,157.38Min 0Fill Rate:99.67%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.77Max Transit Time:6.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Omaha NE559,051557,201$0.90734.20 daysKansas City MO725,007722,608$0.90024.53 daysWichita KS300,295299,302$0.91253.96 daysEl Paso TX227,180226,429$0.90034.53 daysAlbuquerque NM49,91749,752$0.92253.48 daysPhoenix AZ718,391716,014$0.85656.62 daysSalt Lake City UT675,894673,658$0.91903.65 daysSeattle WA870,294867,415$0.82488.14 daysSpokane WA218,354217,631$0.82488.14 daysButte MT280,315279,387$0.85696.60 daysDenver CO1,755,7051,749,896$0.95591.94 days3/11/2023 Page 9/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Minneapolis MNSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,000.00Throughput:1,164,634Variable Costs:$16,071.95Avg 119,543Inv Holding Costs:$35,508.47Max 469,275Freight into DC:$26,413.90Min 0Fill Rate:98.73%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Minneapolis MN739,420730,052$0.95081.00 daysDes Moines IA440,159434,582$0.90363.10 days3/11/2023 Page 10/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Activity Based Costs and PerformanceTotal CostsUnit CostsAverage Time (days)Plant In-boundPurchase Costs$16,065,643.93$0.738Freight Costs$154,483.23$0.0071In Transit to Plant$79,100.31$0.00364.84Raw Mtl. Holding$154,323.49$0.00718.62Production RelatedPlant Fixed Cost$4,800,000.00$0.2205Plant Var. Cost$4,073,224.51$0.1871WIP Holding$212,435.44$0.009810.00Plant Out-boundPlant Warehouse Fix Cost $213,000.00$0.0098Plant Warehouse Var Cost $417,447.95$0.0192Plant Warehouse Holding $124,305.96$0.00575.20In Transit Holding to DC $61,316.07$0.00282.57DistributionDC Freight In$343,194.57$0.0158DC Fixed$192,580.00$0.0088DC Var$293,521.89$0.0135DC Holding$499,965.19$0.02320.58Freight to Customer$2,159,578.99$0.0992In Transit to Customer$85,736.98$0.00393.48AdministrativeControl System Costs–Base$100,000.00$0.0046Control System Costs–DRP$40,000.00$0.0018Control System Costs–Colb$25,000.00$0.0011————–Totals$30,094,858.51$1.374955.293/11/2023 Page 11/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2SUPPLY CHAIN FINANCIAL STATEMENTSSupply Chain Income Statement (does not include Marketing and G & A)Total Annual DollarsDollars / UnitTotal Sales$43,536,677.16$2.0000Total Fixed$5,370,580.00$0.2467Total Variable$23,507,095.07$1.0799Total Inventory $1,217,183.44$0.0559—————–Profit Contribution $13,441,818.65$0.6175Supply Chain Assets EmployedPlants$13,000,000.00Plant Warehouse$750,000.00Distribution $1,925,800.00Inventory$4,057,278.14—————–Total Assets Employed$19,733,078.14SUPPLY CHAIN PERFORMANCE MEASURESCustomer ServiceTargeted Fill Rate:100.00%Achieved Fill Rate99.72%Order Cycle Time to Customer (days)3.48FlexibilityAverage Time through Supply Chain (days)55.29Average Production Capacity Utilization78.42%FinancialSupply Chain Profit Margin30.87%Supply Chain Return on Assets68.12%3/11/2023 Page 12/12
MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce
MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Simulation Decisions:Market Forecasting: CollaborativeCurrent Markets Deleted:New Markets Opened:Alabama, MississippiActive DCs:Detroit MITL4Los Angeles CATL4Dallas TXTL4Chicago ILTL4Denver COTL4Minneapolis MNTL4DC Replenishment Planning:DC Replenishment Planning:Planning Method:DRPTarget DC Fill Rate:100%Time Fence:1 Month(s)Denver Plant:Denver Plant:Operating Capacity:2.1 (in millions)Use Plant Warehouse:TrueWeeks Safety Stock:2Cans/BottlesChemicalsCorrugatedHouston:0.70.70.7Baton Rouge:00.10.1Los Angeles:0.30.20.2Regular Resupply:TL4CL9TL4Weeks Safety Stock:1.52.61.83/11/2023 Page 1/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Plant Location: DenverRaw Material Statistics for: Cans/BottlesMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$1.16$1.19$1.17Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%0.00%30.00%Actual Purchase Shares70.02%0.00%29.98%Volume3,747,12901,604,734Avg Transit Time4.010.004.04Min Transit Time2.000.002.00Max Transit Time8.000.008.00Weeks of Requirements for Safety Stock 1.5Average Inventory at Plant168,942Maximum Inventory at Plant425,726Minimum Inventory at Plant0Fill Rate at the Plant100.00%Raw Material Statistics for: ChemicalsMode of Transport: CL9HoustonBaton RougeLos AngelesOrigin Price$4.05$4.05$4.10Freight to Plant0.0150.01820.0193Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares82.40%0.00%17.60%Volume1,682,4140359,274Avg Transit Time5.940.006.34Min Transit Time2.000.002.00Max Transit Time12.000.0012.00Weeks of Requirements for Safety Stock 2.6Average Inventory at Plant76,345Maximum Inventory at Plant228,360Minimum Inventory at Plant0Fill Rate at the Plant95.37%3/11/2023 Page 2/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Plant Location: DenverRaw Material Statistics for: CorrugatedMode of Transport: TL4HoustonBaton RougeLos AngelesOrigin Price$0.72$0.73$0.75Freight to Plant0.01440.01940.021Planned Purchase Shares70.00%10.00%20.00%Actual Purchase Shares70.91%6.53%22.56%Volume1,515,589139,545482,063Avg Transit Time4.004.024.09Min Transit Time2.002.002.00Max Transit Time7.006.009.00Weeks of Requirements for Safety Stock 1.8Average Inventory at Plant70,810Maximum Inventory at Plant177,541Minimum Inventory at Plant0Fill Rate at the Plant99.83%3/11/2023 Page 3/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Plant Location: DenverProduction Planning and ExecutionPeriodScheduledProduced11,443,2001,325,10521,043,200916,71431,259,2001,167,40741,384,0001,314,31751,552,4001,545,46462,060,0002,001,69972,029,6001,973,87582,096,4002,014,36392,078,8002,033,145102,090,8001,849,243112,097,2001,919,947121,932,0001,745,498131,691,2001,601,199________________________22,758,00021,407,975Lost Production Due to RM Shortages 1,350,025 Plant Finished Goods Warehouse StatisticsWeeks of Requirements for Safety Stock: 2Average 428,301Maximum Inventory2,136,009Minimum Inventory9Volume shipped to DCs21,407,200Fill Rate of FG81.024%3/11/2023 Page 4/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Detroit MISupplying Plant: DenverCost InformationInventory InformationFixed Costs:$35,160.00Throughput:2,646,643Variable Costs:$43,828.42Avg 212,525Inv Holding Costs:$63,402.68Max 397,766Freight into DC:$71,459.37Min 0Fill Rate:99.91%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.79Max Transit Time:6.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Cleveland OH1,207,3651,206,317$0.90662.64 daysDetroit MI1,441,5781,440,327$0.91702.16 days3/11/2023 Page 5/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Los Angeles CASupplying Plant: DenverCost InformationInventory InformationFixed Costs:$31,180.00Throughput:4,596,786Variable Costs:$86,327.64Avg 347,455Inv Holding Costs:$103,493.66Max 652,671Freight into DC:$116,942.23Min 0Fill Rate:99.80%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Los Angeles CA2,749,1602,743,718$0.88033.83 daysSan Francisco CA1,279,1281,276,596$0.84695.41 daysPortland OR577,615576,471$0.82266.58 days3/11/2023 Page 6/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Dallas TXSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,960.00Throughput:3,088,769Variable Costs:$34,841.32Avg 250,896Inv Holding Costs:$73,720.99Max 472,868Freight into DC:$37,065.23Min 0Fill Rate:99.77%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.37Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Birmingham AL343,603342,822$0.88234.73 daysMobile AL48,62748,516$0.88744.49 daysHouston TX524,053522,861$0.92122.90 daysDallas TX992,784990,526$0.98111.00 daysSan Antonio TX99,49799,271$0.91223.32 daysShreveport LA107,562107,317$0.92942.52 daysNew Orleans LA255,257254,676$0.89774.00 daysLittle Rock AR130,610130,313$0.91353.26 daysOklahoma City OK593,818592,467$0.92462.74 days3/11/2023 Page 7/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Chicago ILSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$38,000.00Throughput:3,912,212Variable Costs:$61,578.21Avg 303,533Inv Holding Costs:$90,006.74Max 575,596Freight into DC:$82,156.45Min 0Fill Rate:99.81%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.27Max Transit Time:5.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Chicago IL1,012,9071,010,941$0.95051.00 daysPeoria IL378,277377,543$0.92692.01 daysFort Wayne IN143,979143,699$0.92412.14 daysIndianapolis IN303,449302,860$0.91892.38 daysEvansville IN150,313150,021$0.89713.40 daysMilwaukee WI505,023504,043$0.93541.63 daysSt Louis MO342,324341,659$0.89823.35 daysColumbus OH587,083585,944$0.89543.48 daysCincinnati OH496,465495,502$0.90053.24 days3/11/2023 Page 8/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Denver COSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$21,280.00Throughput:6,359,294Variable Costs:$50,874.35Avg 460,440Inv Holding Costs:$133,832.66Max 1,145,917Freight into DC:$9,157.38Min 0Fill Rate:99.67%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.77Max Transit Time:6.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Omaha NE559,051557,201$0.90734.20 daysKansas City MO725,007722,608$0.90024.53 daysWichita KS300,295299,302$0.91253.96 daysEl Paso TX227,180226,429$0.90034.53 daysAlbuquerque NM49,91749,752$0.92253.48 daysPhoenix AZ718,391716,014$0.85656.62 daysSalt Lake City UT675,894673,658$0.91903.65 daysSeattle WA870,294867,415$0.82488.14 daysSpokane WA218,354217,631$0.82488.14 daysButte MT280,315279,387$0.85696.60 daysDenver CO1,755,7051,749,896$0.95591.94 days3/11/2023 Page 9/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Distribution Center StatisticsDC Location: Minneapolis MNSupplying Plant: DenverCost InformationInventory InformationFixed Costs:$33,000.00Throughput:1,164,634Variable Costs:$16,071.95Avg 119,543Inv Holding Costs:$35,508.47Max 469,275Freight into DC:$26,413.90Min 0Fill Rate:98.73%Transit Time Statistics from Plant Mode Used:TL4Average Transit Time:2.38Max Transit Time:4.00Min Transit Time:2.00Customer Regions ServedMarketDemandSoldProfit Contr.Transit Time–Cust.Minneapolis MN739,420730,052$0.95081.00 daysDes Moines IA440,159434,582$0.90363.10 days3/11/2023 Page 10/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2Activity Based Costs and PerformanceTotal CostsUnit CostsAverage Time (days)Plant In-boundPurchase Costs$16,065,643.93$0.738Freight Costs$154,483.23$0.0071In Transit to Plant$79,100.31$0.00364.84Raw Mtl. Holding$154,323.49$0.00718.62Production RelatedPlant Fixed Cost$4,800,000.00$0.2205Plant Var. Cost$4,073,224.51$0.1871WIP Holding$212,435.44$0.009810.00Plant Out-boundPlant Warehouse Fix Cost $213,000.00$0.0098Plant Warehouse Var Cost $417,447.95$0.0192Plant Warehouse Holding $124,305.96$0.00575.20In Transit Holding to DC $61,316.07$0.00282.57DistributionDC Freight In$343,194.57$0.0158DC Fixed$192,580.00$0.0088DC Var$293,521.89$0.0135DC Holding$499,965.19$0.02320.58Freight to Customer$2,159,578.99$0.0992In Transit to Customer$85,736.98$0.00393.48AdministrativeControl System Costs–Base$100,000.00$0.0046Control System Costs–DRP$40,000.00$0.0018Control System Costs–Colb$25,000.00$0.0011————–Totals$30,094,858.51$1.374955.293/11/2023 Page 11/12 MAS SUPPLY CHAIN SIMULATION RESULTSPrinted by Simulator 1.0 Calendar Year 2023Copyright 2023 by Alan J. Stenger, all rights reservedSCENARIO YEAR = 2SUPPLY CHAIN FINANCIAL STATEMENTSSupply Chain Income Statement (does not include Marketing and G & A)Total Annual DollarsDollars / UnitTotal Sales$43,536,677.16$2.0000Total Fixed$5,370,580.00$0.2467Total Variable$23,507,095.07$1.0799Total Inventory $1,217,183.44$0.0559—————–Profit Contribution $13,441,818.65$0.6175Supply Chain Assets EmployedPlants$13,000,000.00Plant Warehouse$750,000.00Distribution $1,925,800.00Inventory$4,057,278.14—————–Total Assets Employed$19,733,078.14SUPPLY CHAIN PERFORMANCE MEASURESCustomer ServiceTargeted Fill Rate:100.00%Achieved Fill Rate99.72%Order Cycle Time to Customer (days)3.48FlexibilityAverage Time through Supply Chain (days)55.29Average Production Capacity Utilization78.42%FinancialSupply Chain Profit Margin30.87%Supply Chain Return on Assets68.12%3/11/2023 Page 12/12
MAS Eastern Expansion: Part 1: New Markets I have done the NPV calculation (attached) and attached copies of the four simulations plus the assignment instructions. On the NPV calculation sheet in exce
MAS Eastern Expansion: Part 1: New Markets In this assignment, you are free to alter the network structure for MAS Manufacturing Inc. and all other operating parameters. That is, you may open or close markets, distribution centers, and raw material sources in addition to all the other changes you were previously allowed to make. You may also physically expand production capacity at the Denver plant (beyond a maximum of 2,100,000 pounds per period, but no greater than 3,000,000 pounds per period), and you must open a new plant in the Eastern US with a capacity of up to 2,500,000 pounds per 4-week period. However, any Denver plant expansion (beyond 2,100,000 pounds per period) and any new plant facility cannot operate before Year 3 at the earliest. Please note–you must open up at least one manufacturing plant in addition to the Denver plant! Feel free to modify your results from the first assignment (i.e., short-term logistical improvements) based on what you learned in the previous reports on this phase. Any departure from your own earlier recommendations is permitted but should be justified and discussed in your report. Also, a new run for “New Year 1” must be submitted. If you are utilizing the one you had in the first MAS Assignment–that run is not required to be resubmitted. During the first week, read through the MAS Manufacturing Case once more in light of the desire to expand into the new geographic market. It will be helpful! Also, review all the materials for this project (provided in Lesson 1) and the assignment document (provided below). Reading these things before meeting with your group for the first time should make your group time more productive. During this period, begin work on the “Part 1” deliverables for this project. The deliverables include the following: A copy of your project plan–defining the project is the first step in every project! Please develop a brief project definition assuming you will move into the eastern market. This item should be no more than one page. What is your recommended network design for MAS in Year 5? Turn in a printout showing the simulation results of this year. This final optimized “new” supply chain–is based on your previous experience that impacts what DCs, manufacturing plants, etc. need to be opened and when to meet the new market needs. This deliverable is the information required to answer Question 1 below. Remember answering the actual Question 1 is part of the PowerPoint Deck, which is not required at this point in time–just the printout of the Year 5 simulation run is required now. A list of activities, costs, and implementation timelines–this information will be the basis for the NPV calculation and a CPM document. Please ballpark these items based on your experience–no need to do research–just your best guess. This deliverable might include information required to answer some of the questions in the assignment. Remember, actually answering those questions is part of the PowerPoint Deck, which is not required at this point in time.