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Bis Corporation Essay

Prepare a written report with the results organized in tables. Submit your project to me via email by the deadline. In your email should include your written report in pdf format and your Excel implementation. Attach the two documents to your email separately, do not compress the two into an archive file, e.g. zip, rar, 7z. This can be undertaken as a group project or you may choose to work individually. You may work as a team of maximum of 4 students.

Significant points will be deducted if you fail to follow the above instructions, submit only an Excel document, or submit the work of someone else.

Bis Corporation

Recall the Bis Corporation example covered in class. SKUs are aggregated into 3 groups. Customers are aggregated into 25 groups. Project data is uploaded as an Excel workbook. In this workbook SKU groups value, volume and weight data are given. Monthly demand AVG and STD values for each customer group are given in SKUs. Highway distances between all Turkish cities are given. The distances in the diagonal of the matrix corresponds to the average distance of two points (e.g. factory-warehouse or warehouse-customer) within the same city. There are two factories: Kocaeli plant produces S01 and S02 groups only, Adana plant produces S03 group only. Warehouse parameters and annual fixed costs are given. Inbound transportation is carried out on semi-trailer trucks, outbound transportation on regular trucks. There two alternatives to be compared: A1 with 2 warehouses and A2 with 5 warehouses.

a) Calculate and present in a table inbound and outbound unit cost of transportation of each SKU group. For each SKU group and truck type first find whether the truck capacity (number of SKUs that can be loaded) is limited by volume or weight. Then use the load factor to calculate how many SKUs can be loaded on average. Then calculate the cost of transporting one SKU to a distance of 100km. b) For alternative A1 calculate monthly costs. Calculate the monthly outbound transportation costs for each customer group and SKU group.

Calculate the monthly inbound cost of transporting SKUs from factories warehouses. Calculate the average inventory levels at each warehouse by volume and value. Calculate the required warehouse capacities and then which warehouse choice will be made. Then find the corresponding warehouse fixed cost (convert it into a monthly cost). Calculate the monthly holding costs and handling costs at each warehouse. Finally calculate the monthly total cost as the sum of all costs. c) Repeat part (b) for alternative A2.


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