Part $2$ Network Baseline Analysis $($Group Assignment$)$

For Part $2,$ you will use the clean Shipping History data set $($provided following completion of Part $1)$ to $($a$)$

develop a baseline model and $($b$)$ produce an optimized model using the $2$ DCs$.$ This includes applying

transportation and operations costs to the current data set $($baseline$),$ ensuring each order is assigned to

the most appropriate DC $($i$.$e$.,$ the DC associated with the lowest total combined logistics cost$),$ and ensuring

each order meets or exceeds the $2-$day delivery goal $($optimized$).$ The baseline provides a starting point

from which to make your comparisons when designing a new supply chain solution in Part $3.$

There are three types of costs to be considered:

$$ Transportation Cost $$ the freight cost for the shipment based on the Zone, Weight, and Service

Type. These elements are used to determine the freight cost found in the Rate Table$($s$).$

$$ Operations Cost $$ the cost to pick, pack, and hand the order over to the carrier. This cost is based

on a standard charge per order associated with the origin location $($i$.$e$.,$ where the order was

shipped from$).$ This cost is found in the DC and Store Locations file.

$$ Combined Logistics Cost $$ the sum of Transportation and Operations costs.

The deliverable for Part $2$ should include the following analyses:

$($a$)$ Create a Baseline Distribution Model $-$ Show the current transportation, operations, and

combined logistics costs for the existing network of distribution centers $($DCs$)$ based on the origin

location and Service Type shown in the Shipping History file.

$$ Assume the Rate Sheets provided have had all fees, surcharges, and negotiated discounts

applied.

$($b$)$ Create an Optimized Distribution Model $-$ Show the transportation, operations, and combined

logistics costs for the existing network of distribution centers $($DCs$)$ after ensuring each order is

assigned to the most appropriate DC and Service Type. Simply put, you need to determine the

origin location and Service Type that result in the lowest combined logistics cost while meeting or

exceeding the stated delivery timeframe goal of $2$ days or less for every order.

The deliverable for Part $2$ is a management summary report that is no longer than three pages. The report

should use summary tables to clearly show: $($a$)$ the costs and differences in costs between the baseline

and optimized models for transportation, operations, and combined logistics costs, $($b$)$ the number of

shipping transactions associated with each origin$/$service type combination, and $($c$)$ the average number of

delivery days for each origin$/$service type combination as well as differences between the baseline and

optimized model results on this metric.

HINT: Summarize your results using tables. Example tables for Part $2$ can be found on Canvas.