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A concept of cost-minimalized order transactions by the HANDEL GmbH considering supplier’s commitments and restrictions of capacity in service provision and goods movement.

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A concept of cost-minimalized order transactions by the HANDEL GmbH considering supplier’s commitments and restrictions of capacity in service provision and goods movement. Empty A concept of cost-minimalized order transactions by the HANDEL GmbH considering supplier’s commitments and restrictions of capacity in service provision and goods movement.

Post  Admin Tue Jan 06, 2009 3:13 pm

Prof. Wilhelm Dangelmaier

A concept of cost-minimalized order transactions by the HANDEL GmbH considering supplier’s commitments and restrictions of capacity in service provision and goods movement.

1. Initial situation

Geographical scope:
Germany, Switzerland, Slovakia, Scandinavia. (Depending on the data from Benteler)

Customer Base:
The customer base is typical for a trade organization. It equates to the common ABC-classification: The range is from customers with a reiterating constant just-in-time delivery due to a tight time frame and an exactly defined point of delivery, supply with direct sales and full lorries, purchase notifications and frame contracts according to the cyclic deliveries with variable tours in bordered delivery districts (“Bavarian Forrest, every Wednesday”) up to customers, that order a pipe section with a length of 20 cm only one time and a delivery time each week just as well as accepting a promise of delivery in a well defined week and to mandate any fright carrier.

Company organisation of the HANDEL GmbH
The storage locations as well as the range of goods which are transacted over the storage locations are defined. Maximum and minimum stocks are defined, too. A storage location is not only a transaction point of any commodity flows but rather an own production stage: According to the matter that pipes are ordered in certain lengths, the saws are placed in every location and limit the output. You can find some different combinations, too. The scope reaches from one location with only one saw, which is furthermore sporadically loaded, up to locations with heavily loaded saws that works parallel, and based on different shifts, which are certainly involved in long-term work for appointed customers / appointed products and they have to be reserved sophisticatedly.

Distributors
The Handel GmbH gets its material from their own storage locations, from HANDEL-facilities and from external service providers. Just like the customer side, the scope reaches from a fixed sequence of suppliers deliveries to a sporadic delivery with milk run. (geometrical conclusion)

Operational structering
The commodity flow reaches from direct deliveries of a customer by a HANDEL GmbH-supplier to a multlevel-destribution process over serveral storage locations. The order process and the process-planning is supported by SAP, rather by SAP-PP.

Transport
Practically transports result from all organisation concepts, if they make sense (milk run with a big time circle up to direct transports)

2. Assignment of tasks


In this assignment of tasks, you can emanate from a network and for this reason from an assumed amount of customers, distributors, products, HANDEL-storage locations, shippers… On the status quo (actual situation, according to deliverysituation, open purchase order quantity of HANDEL, open purchase order quantity of HANDEL-customers, availability, transport-, storage location- and sawcapacity) of this network you have to put on a “production progam”, which captures, optimises, initiates and show the multilevel of the material flow in this network.

The updated values from orders, stocks and capacities must be scheduled daily. Delivery promises must be (as possible) fullfiled. If applicable, approaching the day of delivery into a narrow deadline / a higer liability could be the solution.
In addition to this, you should bring a technical-consulting-manner into the network: Concerning to their own equipment the customers of the HANDEL GmbH expect some support which is beyond the pure service. These advisory skills, according to the behaviour of their own components, referring to the usage of the HANDEL-components and the enhancements of these components have to vary with the seasons within a respose time of ≤ 5 days and a distance of ≤ 150km between two points.

The modelling should be affected within a formal way or speech. Conceivably, you can model this with SAP / APO. In due time that cause will be decided. By all means the accomplishment of the data volume and the adherence of promised statements must implicate an change management concept.

3. Competence/ Legwork/ Preliminary work of the chair

Naturally, the chair “WINFO/CIM” will integrate this project under its processes.
Concretely, there are particular three scholarships/ disseration projects mentioned:
- Improvement of the destribution network of the Firm VILEDA, according to the ability to deliver and the delivery reliability.
- Improvement of the activity transport and processing for a logistic service provider.
- Improvement of “Werkstruktur” for a conern of engineering.

Paderborn, 8. December 2008

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