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Blue Devil Breweries

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Blue Devil Breweries. Information from Dr. Clarence Martin ... To determine where plants should be located. To determine plant size ... – PowerPoint PPT presentation

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Title: Blue Devil Breweries


1
Blue Devil Breweries
  • Information from Dr. Clarence Martin

2
Chudy Consulting Recommendations for Logistics
  • Doug Chudy
  • Rob McDaniel
  • Ann OHarra

3
Problem Statement
  • To determine where plants should be located
  • To determine plant size
  • To determine the distribution strategy

4
Capital Costs
5
Cost/Capacity Parameters of Plants by Size
6
Approach
  • Plants in all 7 cities, and cover demand
  • Plants in no more than 5 cities, and cover demand
  • Plants in no more than 5 cities, and an option of
    covering demand

7
Results
  • Study 1 NPV 1,511,725,000
  • Study 2 NPV 1,663,453,000
  • Study 3 NPV 1,674,750,000

8
Recommendations
  • Study 3
  • Los Angeles - small plant size
  • Baltimore - medium plant sizes
  • Oklahoma City
  • Kenosha
  • Richmond

9
Recommendations Cont.
  • Distribution Network
  • Los Angeles - San Diego
  • Baltimore - N.Y., Pitt., Atl., Orl.
  • Oklahoma City - Atl., K.C., Dal., Den.
  • Kenosha - N.Y., Atl., Minn., Chi.
  • Richmond - S.F., Sea.
  • NPV 1,674,750,000

10
Conclusion
  • To determine location, size, and distribution
  • Conduct a 3 part study
  • Analyze results and NPVs
  • Implement study with highest NPV
  • We recommend study 3

11
Thank You
  • Any Questions?
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