Optimizing the Value Chain On Desktop Workstations

Cover Optimizing the Value Chain On Desktop Workstations
Optimizing the Value Chain On Desktop Workstations
Jeremy F Shapiro
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We aggregated the 1, 500 items sold by the company into 18 product groups based on manufacturing resource requirements and major customer segments. This choice was dictated in part by the major strategic planning issues to be addressed.
Working with the company's sales manager, we used SLIM's geographic mapping software to display demand concentrations by 3 digit zipcode areas, and thereby identified 81 market areas throughout the U. S. Approximately 98% of total demand was found to lie within
...a 25 mile radius of these 81 points. Transportation costs were based on the truckload rate to serve 19 these markets, as determined by shipments to the city with the greatest demand in the market area. These 81 market areas were then matched to individual salesmen projections for each major customer segment served. The company's sales forecasts for each product group - pessimistic, middle-of-the-road, and optimistic - were assembled in a bottom-up manner from these projections.
The next step in developing the decision data base was to define the cost and capacity parameters for the production and transportation activities.


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