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Southwest Dairy Introduction Southwest Dairy Background Southwest Dairy is a large dairy producer that serves thousands of retail stores in the Southwest United States. Southwest Dairy recently acquired the dairy business unit of TexFarms, one of its competitors. This acquisition sees the addition of a new production plant in Waco to their existing production footprint which includes plants in Houston and Dallas. The combined network distributes milk cartons in pallets to retail stores such as HEB, Walmart and Kroger in the Texas region directly from the production facilities. The milk is sourced from a dairy provider in Clovis, NM and shipped to the production plants where the milk is processed, packaged and palletized before shipping to the stores.

As the business analyst with Southwest Dairy, you're responsible for analyzing the existing Southwest Dairy network to explore potential cost savings resulting from an opportunity to consolidate the production footprint. Olivia, the new Vice President of Supply Chain at Southwest Dairy, joined the organization six months ago with a primary initiative to find cost-saving opportunities after their acquisition of the dairy business unit of TexFarms in order to tighten up the bottom line. In initial meetings with Olivia, you both determined that there were significant redundancies in the network that could be remedied by the consolidation of the production at the plants.