San Macrau Company Essay

3941 WordsFeb 25, 201516 Pages
OMIS 2355 The San Marcau Company Finding the Optimal Distribution Strategies Group Number 4: Akshay Dhuri, Gautam Jain (Team Leader), Pooja Raut, Vrishod Kallakurichi Sathiyanarayanan FALL 2014 1 II. EXECUTIVE SUMMARY PROBLEM DESCRIPTION This case study describes the distribution system and working of the San Marcau Company and states problems faced by the Company and the purpose is to improve and make recommended or all the possible changes that would help the company in obtaining optimal solutions with respect to its current distribution system and help expanding the company. The current network that is described in the problem holds some unmanageable and irrelevant data that tells us that many of the things are overlooked and solving this could help the company in a better way. The problems that could be solved are:1. There are distribution centre limitations in the current distribution system. The following are the distribution centre limitations. For example, Phoenix, Arizona is closer to the Las Vegas distribution centre than to the Santa Fe, Mexico distribution centre. The overall production and distribution cost to Phoenix from San Bernardino via Las Vegas is $14.20/meter and this is cheaper than via Santa Fe which costs up to $18/meter. The company can cut costs to a great extent by excluding these constraints. 2. Also San Marcau can include alternate solutions to cut costs by directing the flow from certain production centres to customer zones. For example, the total production and distribution costs only $15/meter directly from the El Paso to the San Antonio. This is a much cheaper option than when distributed via the Fort Worth distribution centre, which costs up to $16.70/meter or when distributed via the Santa Fe distribution centre which costs up to $20/meter. 3. Finally, The San Marcau Company is anticipating growth in the northern and

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