Optimization Analysis and Strategic Recommendations for Shuzworld's Operations Management
A strategic analysis and optimization plan for Shuzworld�s operations.
David Miller
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DA Task 2 , JGT 2 1
Optimization Analysis and Strategic Recommendations for Shuzworld's
Operations Management
Analyze Shuzworld's current distribution pattern, machine reliability, production costs,
inventory management, and line waiting systems. Evaluate the effectiveness of proposed
changes, including the impact on transportation costs, production reliability, inventory
overhead, and customer wait times. Your analysis should be supported by relevant
calculations and include recommendations for optimization. Your response should be
1,500 to 2,000 words and include citations from at least two academic sources using APA
style.
Optimization Analysis and Strategic Recommendations for Shuzworld's
Operations Management
Analyze Shuzworld's current distribution pattern, machine reliability, production costs,
inventory management, and line waiting systems. Evaluate the effectiveness of proposed
changes, including the impact on transportation costs, production reliability, inventory
overhead, and customer wait times. Your analysis should be supported by relevant
calculations and include recommendations for optimization. Your response should be
1,500 to 2,000 words and include citations from at least two academic sources using APA
style.
DA Task 2 , JGT 2 2
A. Distribution Pattern
The company’s distribution pattern should reveal 1300 units shipping from Shanghai
to Warehouse 2. Shuzworld H is currently shipping 300 units to Warehouse 1,
shipping 200 units to Warehouse 2, and shipping 1800 units to Warehouse 3.
Shuzworld F is shipping 2200 units to Warehouse 1. This current shipping model
reveals Optimal Transportation Costs equaling $13,600. The changes to the
production model that was provided would increase shipping and production from the
Shanghai plant to 2800 units from the current 1300 units. The increase in production
will decrease the transportation costs from this plant by $200. The new plan is also
contingent upon the Shanghai plant shipping having the capabilities to ship 200 more
units to Warehouse 2.
Orig.
Shipping Plan WH 1 WH 2 WH 3 Supply
Shanghai 4 3 3 1,300
Shuzworld H 3 4 2 1,500
Shuzworld F 2 4 6 1,800
Demand 2,500 1,500 1,800
Optimal Cost = $13,000
Warehouse 1 Warehouse 2 Warehouse 3
Shanghai 1,300
Shuzworld H 300 200 1,800
Shuzworld F 2,200
New Shipping Plan
Warehouse 1 Warehouse 2 Warehouse 3 Supply
Shanghai 4 3 3 2,800
Shuzworld H 3 4 2 1,500
Shuzworld F 2 4 6 1,800
Demand 2,500 1,500 1,800
A. Distribution Pattern
The company’s distribution pattern should reveal 1300 units shipping from Shanghai
to Warehouse 2. Shuzworld H is currently shipping 300 units to Warehouse 1,
shipping 200 units to Warehouse 2, and shipping 1800 units to Warehouse 3.
Shuzworld F is shipping 2200 units to Warehouse 1. This current shipping model
reveals Optimal Transportation Costs equaling $13,600. The changes to the
production model that was provided would increase shipping and production from the
Shanghai plant to 2800 units from the current 1300 units. The increase in production
will decrease the transportation costs from this plant by $200. The new plan is also
contingent upon the Shanghai plant shipping having the capabilities to ship 200 more
units to Warehouse 2.
Orig.
Shipping Plan WH 1 WH 2 WH 3 Supply
Shanghai 4 3 3 1,300
Shuzworld H 3 4 2 1,500
Shuzworld F 2 4 6 1,800
Demand 2,500 1,500 1,800
Optimal Cost = $13,000
Warehouse 1 Warehouse 2 Warehouse 3
Shanghai 1,300
Shuzworld H 300 200 1,800
Shuzworld F 2,200
New Shipping Plan
Warehouse 1 Warehouse 2 Warehouse 3 Supply
Shanghai 4 3 3 2,800
Shuzworld H 3 4 2 1,500
Shuzworld F 2 4 6 1,800
Demand 2,500 1,500 1,800
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Subject
Operations Management