Golf Club Production and Shipping Optimization - Management Assignment Help

Assignment Task

Golf Club Production and Shipping Optimization

Craig Zielazny is the new VP for operations at BlueNote Golf Clubs (BNGC), a company specializing in the production of quality, discount golf club sets.

Craig was hired primarily because of his expertise in supply chain management (SCM).

SCM is the integrated planning and control of all resources in the logistics process from the acquisition of raw materials to the delivery of finished products to the end user. 

While SCM seeks to optimize all activities in the supply chain including transactions between firms, Craig’s top priority is ensuring that all aspects of production and distribution within BNGC are operating optimally.

BNGC produces three different lines of golf clubs for men, women, and junior golfers at manufacturing plants in Daytona Beach, FL; Memphis, TN; and Tempe, AZ. The plant in Tempe produces all three lines of clubs while the one in Daytona Beach only produces Men’s and Women’s lines, and the plant in Memphis only produces the Women’s and Junior’s lines. 

Each line of clubs requires varying amounts of three raw materials which are sometimes in short supply: titanium, aluminum, and a distinctive rock maple wood that BNGC uses in all of its drivers.

The manufacturing process for each line of clubs at each plant is identical. 

Thus, the amount of each of these materials required in each set of the different line of clubs is summarized in the following table:

The estimated amount of each of these key resources available at each plant during the coming month is given as:

BNGC’s reputation for quality and affordability ensures that they can sell all the clubs they can make. The Men’s, Women’s, and Junior’s lines generate wholesale revenues $225, $195, and $165, respectively, regardless of where they are produced. 

Club sets are shipped from the production plants to distribution centers in Sacramento, CA, Denver, CO, and Pittsburgh, PA. Each month, the different distribution centers order the number of club sets in each of the three lines that they would like to receive. 

BNGC’s contract with this distributor requires the company to fill at 90% (but no more 100%) of all distributor orders. 

Craig recently received the following distributor orders for the coming month:

The cost of shipping a set of clubs to each distribution point from each production facility is summarized in the following table. Note again that Daytona does not produce Junior’s club sets and Memphis does not produce Men’s club sets.

Craig needs you to determine an optimal production and shipping plan for the coming month.

1. Create a spreadsheet model for this problem and solve it. What’s the greatest profit that can be generated? 

2. If Craig wanted to improve this solution, what additional resources would be needed and where would they be needed? Explain. 

3. What would BNGC’s optimal profit be if the company was not required to supply at least 90% of each distributor’s order? 

4. Prepare a business memo which summarizes the problem presented, key information/parameters, your approach to solving the problem and answering the additional questions. You may use any memo format you wish but it should be professional. 
 

Hints:
1. The resource allocation portion needs to be separated by production facility. Transportation needs to be broken down by club type.
2. For shipping costs that are not listed (Men’s Memphis, etc) use a cost of $99,999.
3. The 90% requirement is just another constraint.

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