Case Study

QSO 322 Final Project Guidelines and Rubric

Overview A detailed foundational knowledge of logistics management is essential to a successful logistics career. Companies want emplo yees to be able to assess existing processes and practices, but also to improve these processes to cut costs and meet deadlines. Your assessment for this course is a report or presentation with detailed speaker notes or a recording using a tool such as Jing, detailing your analysis and including foundational recommendations for an existing company’s logistics framework. This report will focus on one organization and will be broken up into several sections to give attention to the key areas of logistics management. Throughout this course, you will have the opportunity to receive feedback from your instructor to help you achiev e a successful final submission of your evaluation report.

The project is supported by a milestone, consisting of 16 questions directly related to each critical element of your final case study submission. This milestone will be submitted in Module Five. The final submission will occur in Module Seven.

In this assignment you will demonstrate your mastery of the following course outcomes:

 Calculate costs and production needs based on analysis of organizational logistic needs assessments and customer requirements

 Identify company logistics, capacity planning, and resource needs by applying foundational qualitative and quantitative analysis methods

 Propose foundational methods for integrating logistic delivery systems into a cohesive, lean delivery system to satisfy customer demand at least cost  Analyze variable demand cycles, carrying costs, customer preferences, and just-in-time principles for successful inventory management  Evaluate the efficiency and effectiveness of physical distribution systems for receiving, storing, and shipping raw goods and finished products

Prompt Your needs assessment and improvement proposal should answer the following prompt: Given the organization, products, and specifications provided in the Acme Bicycle case study, what are the logistics needs and what suggestions can you make for improving aspects of the framework?

Specifically, the following critical elements must be addressed:

I. Needs and Scenario Assessment A. Assess customer logistics support needs for a product line.

1. Scenario Background: Analyze the logistic support needs of an external customer given their own production requirements and considering time, cost, and quantity of materials needed. What are the key elements, such as product requirements, provided in the scenario that are essential for determining the logistic support needs of the organization? What are the needs of the organization?

2. Sourcing Alternatives: Given required logistic support, calculate the costs for in-house and outsourced production of goods for the demand cycle. What would be a best package solution that considers in-house capabilities and outsourced alternatives that would allow for least cost, given your results?

3. Post-Sale Support/Reverse Logistics Needs: Calculate the estimated warranty costs for a product and explain what the costs mean for the company. Something to consider in the explanation is support needed to customers post-sale to plan post-sale support, replacement, and discontinuation of products. For these, you will need to estimate the failure rates from the scenario.

B. Assess company capacity and approaches in order to satisfy needs. 1. Capacity Constraints: Given customer requirements and sourcing mix, identify specific capacity constraints in production. You will need

to figure out the known capacity in view of project demand to do this successfully. 2. Product Positioning: Develop a plan for positioning finished goods to ensure ease of delivery and convenience, while also attending to

resource needs and capacity constraints. 3. Materials Requirements Planning: Given the required rate of production and plant capacity, create a material requirements plan to

successfully fulfill customer and logistics needs identified in the scenario and during your analysis of the case. Your plan should be simple, focusing only on the needs identified and your plan to ensure you are meeting material requirements.

II. Optimization Proposal A. Recognize and apply logistics management techniques given internal capabilities.

1. Production Plan Creation: Given the set of production requirements for one item, determine optimal batch size (the best size or number of products per batch that you will create in a given set to meet production requirements) for a product considering the set-up time and calculated demand patterns.

2. Production and Stockage Alternatives: Considering the required output for the product line, develop a single solution or mix of make- to-stock, make-to-order, or make-to-engineer methods to fulfill projected demand.

3. Profit Potential: Given the set of costs and selling prices, determine and explain the optimal mix of two products a company could produce given the capacity constraints you identified previously.

B. Manage sourcing and inventory to minimize costs.

1. Inventory Levels: Determine inventory levels of three products to minimize costs while considering the production schedule and projected sales. In other words, what would be the best number of each product to have on hand to meet projected sales while not wasting money on extra storage of unsold goods?

2. Inventory Management Evaluation: Discuss the effectiveness and efficiency of the inventory management process, considering key metrics such as inventory turn rate, stock outages, and carrying costs for three products.

3. Planning for Inventories: Based on historic and projected data, determine the likely inventory position for three products that balances the need to minimize costs with avoiding stock outages. In other words, calculate and explain the significance of not-in-stock rates for three products, based on product and demand schedules.

4. Just-in-Time (JIT) Inventory: For the given inventory consumption patterns, determine an opportunity to use JIT inventory techniques to reduce warehouse needs while not starving production capacity. In other words, calculate JIT inventory needs for a segment of a production line for a single day.

C. Manage a physical distribution system to minimize costs. 1. Physical Distribution Process: Based on the inventory requirements, develop a physical distribution process for the company that is

focused on necessary square footage of warehouse space for given inventory levels. 2. Warehousing Effectiveness: Given the set of required inventory, evaluate the effectiveness of the warehouse operations using key

metrics (that you will choose). Be sure to consider the following in your calculations of key metrics: receipt of raw goods, stowing, shipping, and warehouse relocation.

3. Shipping Management to Minimize Costs: Develop a plan to deliver finished goods to customers within given shipping requirements for three products while minimizing costs.

4. Warehousing Utilization: For the required inventory, determine the effectiveness of warehouse utilization for the inventory. Your evaluation of warehouse utilizations should include calculating space utilization rates for commodities.

Milestone: Acme Bicycle Case Study Questions

Milestones

In Module Five, you will submit answers to 16 questions related to the Acme Bicycle case study. Answering the 16 questions will assist you in completing your final project case study, due in Module Seven. Answer the questions as completely as possible to prepare yourself for the final case study. Each question identifies the critical element of the final project to which it is related. Review the case study questions, and review their alignment with the corresponding critical elements of the final case study: Case Study Questions Alignment.

Final Project Submission: Acme Bicycle Case Study In Module Seven, you will submit a report or a presentation with detailed speaker notes or a recording using a tool such as Jing. This rep ort or presentation will detail your analysis and will include foundational calculations and suggestions for optimizing an existing company’s logistic s framework. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. The final project will be graded using the Final Product Rubric (below).

Final Product Rubric Guidelines for Submission: You will have two options for submission of your final project: You may create a presentation with detailed speaker notes and

appropriately cited resources, or you may create a report in APA format. Regardless of your choice, your submission should be of professional quality and clear, without spelling, grammar, or citation errors. You must also show all calculations in an appendix section of your report or an appendix slide(s) of your presentation.

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Assessment: Scenario Background

Meets “Proficient” criteria, and depth and detail of analysis show insight into the logistics support beyond foundational considerations

Analyzes the logistic support needs of the scenario external customer, considering production requirements, time, cost, and quantity of materials needed

Analyzes the logistics support needs of the scenario external customer, but not in consideration of given requirements or with gaps in necessary detail

Does not analyze the logistics support needs of the scenario external customer

5.7

Assessment: Sourcing Alternatives

Meets “Proficient” criteria, and comparison identifies least-cost combination while still meeting customer demand

Correctly calculates costs for in- house and outsourced production of goods for demand cycle for comparison for least cost

Calculates costs for in-house and outsourced production, but incorrectly or in a manner that would not allow for comparison for least cost

Does not calculate costs for in- house and outsourced production of goods for comparison

5.7

Assessment: Post- Sale Support

Meets “Proficient” criteria, and explanation is a comprehensive overview of the key elements of post-sale support costs and needs

Accurately calculates estimated warranty costs given failure rates for a product and explains what the costs mean for the company

Calculates estimated warranty costs for a product, but estimation is inaccurate, or does not explain what the costs mean for the company

Does not calculate estimated warranty costs for a product

5.7

Assessment: Capacity Constraints

Meets “Proficient” criteria, and identification is qualified with explanation of the specific deficiencies in production

Identifies production capacity constraints by calculating known capacity in view of projected demand correctly

Identifies production capacity constraints by calculating known capacity, but determination or calculations are incorrect or incomplete

Does not identify production capacity constraints by calculating known capacity

5.7

Assessment: Product Positioning

Meets “Proficient” criteria, and plan identifies the improvement opportunities for product positioning accurately to make a feasible plan

Drafts a logical plan to minimize costs of transporting raw goods and delivery of finished goods between two plant sites and three customer sites based on correct calculation of costs

Drafts a plan to minimize costs of transporting raw goods and delivery of finished goods between two plant sites and three customer sites, but plan is not logical, or the calculations on which it is based are not correct

Does not draft a plan to minimize costs of transporting raw goods and delivery of finished goods between two plant sites and three customer sites based on calculation

5.7

Assessment: Materials

Requirements

Meets “Proficient” criteria, and materials plan is accurate in identifying or preventing risks to successfully fulfilling requirements

Creates a simple material requirements plan based on correct calculations of projected raw goods requirements for production

Creates a simple material requirements plan, but does not base it on calculations, or calculations were performed incorrectly

Does not create a simple material requirements plan

5.7

Proposal: Production Plan Creation

Meets “Proficient” criteria, and plan is detailed to the level of identifying shortcomings in capacity compared to the demand cycle

Creates production plan that determines optimal batch size for one product considering the set- up time, production requirements, and calculated demand patterns

Attempts to create production plan, but it is not based on set-up time, production requirements, and calculated demand patterns

Does not create a production plan

5.7

Proposal: Production and Stockage Alternatives

Meets “Proficient” criteria, and solution is of a quality to take production constraints into consideration to develop the solution that is most appropriate for the scenario

Develops a single solution or mix solution that would logically fill project demand based on required output for the production line

Develops a single solution or mix solution, but solution would not logically fill project demand or is not based on required output for the production line

Does not develop a single or mix solution for filling project demand

5.7

Proposal: Profit Potential

Meets “Proficient” criteria, and explanation of mix clearly details the mix and the parameters that make the mix optimal for the case, so that explanation could act as a recommendation for company improvement

Determines and explains the optimal mix of two of the products from the case, given analysis of costs and selling prices

Determines and explains a mix of two products, but it is not the optimal mix or is not based on analysis of costs and selling price

Does not determine and explain a mix of two products

5.7

Proposal Inventory Levels

Meets “Proficient” criteria, and inventory levels identified for the three products are logically balanced between production, sales, and cost considerations over time

Determines inventory levels for three products that would potentially minimize costs while considering production schedule and sales projections

Determines inventory levels for three products, but levels would not minimize cost or do not consider production schedule and sales projections

Does not determine inventory levels for three products

5.7

Proposal: Inventory Management

Evaluation

Meets “Proficient” criteria, and discussion considers specific and relevant metrics that are calculated from the information provided in the scenario

Accurately discusses the effectiveness and efficiency of inventory management processes for three products from the scenario, considering key metrics used in logistics management

Discusses the effectiveness and efficiency of inventory management processes for three products from the scenario, but with gaps in accuracy or lacking consideration of key metrics used in logistics management

Does not discuss the effectiveness and efficiency of inventory management processes for three products from the scenario

5.7

Proposal: Planning for Inventories

Meets “Proficient” criteria, and explanation is qualified with a larger-context discussion about the risks and benefits of NIS rates and total lost sales that may occur

Accurately calculates and explains not-in-stock (NIS) rates based on given production and demand schedules for three products

Calculates and explains not-in- stock (NIS) rates, but not accurately based on given production and demand schedules for three products

Does not calculate and explain not-in-stock (NIS) rates for all three products

5.7

Proposal: Just-in- Time Inventory

Meets “Proficient” criteria, and calculation is of a quality to account for risks and unexpected changes

Accurately calculates JIT inventory needs for a segment of the production line for one day, based on provided information

Calculates JIT inventory needs for a segment of the production line for one day, but used incorrect technique, provided incorrect answer, or used incorrect information from scenario

Does not calculate JIT inventory needs for a segment of the production line for one day

5.7

Proposal: Physical Distribution Process

Meets “Proficient” criteria, and process creation is sophisticated and includes allocation of space based on the movement quantities of materials

Develops a focused physical distribution process that accurately details necessary square footage of required warehouse space for given inventory levels

Develops a physical distribution process that inaccurately details necessary square footage of required warehouse space for given inventory levels, or process lacks detail or focus

Does not develop a physical distribution process that identifies necessary square footage

5.7

Proposal: Warehousing Effectiveness

Meets “Proficient” criteria, and evaluation is detailed enough to provide a foundation for future recommendations for improvement

Accurately evaluates the effectiveness of warehouse operations by utilizing key metrics

Evaluates the effectiveness of warehouse operations, but is not accurate, or does not use key metrics successfully to determine effectiveness

Does not evaluate the effectiveness of warehouse operations

5.7

Proposal: Shipping Management

Meets “Proficient” criteria, and profiles accurately identify lowest-cost shipping profiles for customer demand

Develops a reasonable plan for delivering finished goods to customers that minimizes costs, based on shipping requirements provided

Develops a plan for delivering finished goods to customers that minimizes costs, but it is not reasonable based on shipping requirements provided

Does not develop a plan for delivering finished goods to customers that minimizes costs

5.7

Proposal: Warehousing

Utilization

Meets “Proficient” criteria, and evaluation is detailed enough to provide the foundation for future recommendations for improvements

Accurately determines the effectiveness of warehouse utilization for the required inventory provided

Inaccurately determines the effectiveness of warehouse utilization for the required inventory provided

Does not determine the effectiveness of warehouse utilization

5.7

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

3.1

Total 100%