Fireside Tire Organization Case Study'
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case_12-2_fireside_tire-tip-rev1.doc|
Grid Technique Analysis for Fireside Tire Co. |
PART A |
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Grid Coordinates |
Calculations |
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Sources/Markets |
Rate/CWT-mile (a) |
CWT (b) |
Horizontal |
Vertical |
A*B*Horizontal |
A*B*Vertical |
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Toledo (s1) |
2.2 |
15000 |
1360 |
1160 |
44,880,000 |
38,280,000 |
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Macomb (s2) |
2.43 |
5000 |
980 |
1070 |
11,907,000 |
13,000,500 |
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Allentown (s3) |
2.52 |
11000 |
1840 |
1150 |
51,004,800 |
31,878,000 |
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Totals: |
31000 |
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107,791,800 |
83,158,500 |
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Chattanooga (m1) |
7 |
2700 |
1350 |
650 |
25,515,000 |
12,285,000 |
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Atlanta (m2) |
7 |
3500 |
1400 |
600 |
34,300,000 |
14,700,000 |
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Tampa (m3) |
7 |
4300 |
1570 |
220 |
47,257,000 |
6,622,000 |
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Birmingham (m4) |
7 |
2800 |
1260 |
580 |
24,696,000 |
11,368,000 |
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Miami (m5) |
7 |
5300 |
1740 |
90 |
64,554,000 |
3,339,000 |
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Jacksonville (m6) |
7 |
5100 |
1600 |
450 |
57,120,000 |
16,065,000 |
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Columbia (m7) |
7 |
2200 |
1600 |
650 |
24,640,000 |
10,010,000 |
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Charlotte (m8) |
7 |
2900 |
1590 |
740 |
32,277,000 |
15,022,000 |
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Raleigh/Durham (m9) |
7 |
2200 |
1700 |
800 |
26,180,000 |
12,320,000 |
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Totals: |
31000 |
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336,539,000 |
101,731,000 |
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Coordinates: |
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Horizontal |
Vertical |
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Numerator |
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107,791,800 |
83,158,500 |
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+ |
336,539,000 |
101,731,000 |
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444,330,800 |
184,889,500 |
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Denominator |
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72870 |
72870 |
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+ |
217000 |
217000 |
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289870 |
289870 |
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Grid Location: |
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????? |
????? |
Some additional "Tips" to note;
1. Use Excel to complete the table and calculations! Show the details behind the results.
2. Familiarize yourself with the "Example of a Heuristic Modeling Approach: The Grid Technique" described starting on pg 542.
3. Note the meaning of the "Lower" and "Upper-Case" variables denoted on pg544. Lower Case = Raw materials, Upper-Case = Finished Goods.
4. Study Table 12-2 to verify the Grid Center justifies Atlanta; does it or not, verify how close the number comes to the locations specified on pg 558.
5. Given the state of freight costs and different modes available, does it make sense for the business, what would you recommend.
6. Complete Item #1 only!
