1. Team Name: HMX Consulting 1 st Round Room: RAWLS 4073 3:20pm – 3:40pm Malcolm Hooks Yueyi Ma Yidi Xu The ∙∙ Solution ∙∙ People

2. Yidi Xu 1 Team Introduction Yueyi Ma Junior Accountancy Yidi Xu Junior Industrial Management Malcolm Hooks Senior Business Mathematics

3. Yidi Xu 2 Case Overview Focus Operations Analysis Recommend ations Implementat ions Agenda

4. Yidi Xu 3 FeaturesDetails National-wide Distributed Sites 16 sites across the United States Two centers in CMSCSAT and SVC Two major warehouses and One small warehouse W34 at SC, W87 at CA, small warehouse DBN at Dallas Two major plantsOne at NC, one at SC Distribution Center (CDC)At NC, distribute parts from external supplier and plants Increasing demand from high-tech companies Short Lead time required Challenges High inventory level High Premium Freight Long Lead time Frequently Stock out at W87 and DBN Case OverviewFocus Operations Analysis Recommendations Implementations Case Overview

5. Yidi Xu 4 Case OverviewFocus Operations Analysis Recommendations Implementations ObjectivesTarget Problems Reduce overall inventory level-High fluctuation in inventory -High holding costs Reduce premium shipment-Frequently use of air freight Reduce lead time-Long lead time according to the freight schedule -Losing potential customers Avoid stock out in warehouses-Frequently stock out will hinder expansion on market share Focus

6. 5 Case OverviewFocus Operations Analysis Recommendations Implementations Dallas -SVC Los Angeles - SAT San Francisco- SAT Operation Analysis Yueyi Ma

7. 6 Case OverviewFocus Operations Analysis Recommendations Implementations Operation Analysis Yueyi Ma

8. 7 Case OverviewFocus Operations Analysis Recommendations Implementations Operation Analysis Yueyi Ma

9. 8 Case OverviewFocus Operations Analysis Recommendations Implementations Short term SolutionsWhy? Regionalize the Electronic Sector - Regionalization will allow for a basis for improved logistics Expand warehouse W87 - Want to increase capacity for sustainable growth Expand Dallas-DBN into a warehouse - Will elevate pressure on W87’s expansion Expand Inventory in warehouse W34 - W34 is between two major plants Fayetteville, NC and Sumter, SC Short-term Recommendations 1-3 years Malcolm Hooks

10. 9 Short term ImplementationsHow? Regionalize the Electronic Sector - Divide network into 3 regional areas (North, South, West) Expand warehouse W87 - Build DBN near Phoenix site to help alleviate pressure on W87 Expand Dallas-DBN into a warehouse - Expand existing warehouse starting in October Expand Inventory in warehouse W34 -Allow W34 to carry more than just standard products Case OverviewFocus Operations Analysis Recommendations Implementations Short-term Implementations 1-3 years Malcolm Hooks

11. 10 Long term SolutionsWhy? Build new fully functional plant near Las Vegas, NV - Las Vegas, NV fits the population requirement and has land at discount Introduce New Shipping Schedule - New schedule will improve overall efficiencies and reduce Lead Time Discontinue Partnership with CDC - With new plant, there is no need for the third party to consolidate shipments form East to West Case OverviewFocus Operations Analysis Recommendations Implementations Long-Term Recommendations 5-10 years Malcolm Hooks

12. 11 Case OverviewFocus Operations Analysis Recommendations Implementations Long term ImplementationsHow? Build new fully functional plant near Las Vegas, NV - Once DBN is completed, start work on new plant near Las Vegas, NV Introduce New Shipping Schedule -Las Vegas, NV (West) -Fayetteville, NC (North) -Sumter, SC (South) Discontinue Partnership with CDC - Discontinue Partnership once Las Vegas plant is completed. Long-Term Implementations 5 -10 years Malcolm Hooks

13. 12 Case OverviewFocus Operations Analysis Recommendations Implementations Thank You

14. 12 Case OverviewFocus Operations Analysis Recommendations Implementations Appendix The ∙∙ Solution ∙∙ People

15. 13 Case OverviewFocus Operations Analysis Recommendations Implementations Current shipping Schedule Day 1 Day 2 Day 3 The ∙∙ Solution ∙∙ People AF-1

16. 13 Case OverviewFocus Operations Analysis Recommendations Implementations New shipping Schedule Fayetteville Sumter Las Vegas New Shipping Schedule - 1 day Lead Time/Order Interval - Major Warehouse in 3 regions - No need for 3 rd Party CDC The ∙∙ Solution ∙∙ People AF-2

17. 13 Case OverviewFocus Operations Analysis Recommendations Implementations NEW VS. OLD NETWORK New NetworkCurrent Network W60 W34 W87 Plants (NC, LV, SC) Plants (NC, LV, SC) South CMSC’s South CMSC’s North CMSC’s North CMSC’s West CMSC’s West CMSC’s External Suppliers W34 W87 Plants (NC, LV, SC) Plants (NC, LV, SC) CMSC’s External Suppliers CDC 1-2 day Lead Time 2-3 day Lead Time The ∙∙ Solution ∙∙ People AF-3

18. 14 Case OverviewFocus Operations Analysis Recommendations Implementations The ∙∙ Solution ∙∙ People AF-4

19. 14 Case OverviewFocus Operations Analysis Recommendations Implementations The ∙∙ Solution ∙∙ People AF-5