Grand Sud Distribution S.A.

Published 01 Mar 2005
Reference 5266
Topic Operations
Region Europe
Length 3 page(s)
Language English
Summary

A meat processing and distribution company has ailing logistics. Management seeks to rationalize production and shipping decisions, which must be made daily, to ensure optimal utilization of in-house capabilities as well as outsourcing opportunities. Based on the case information, a linear optimization model can be built to guide decision making.

Teaching objectives

The case aims to: • llustrate the use of optimization models to support efficient, timely decision making in a logistical system. Show the value added by such models in terms of increased net revenue. • Illustrate the use and managerial value of sensitivity analysis on optimized solutions. • Demonstrate the relationship between (1) systemwide optimization of short-term, operational decisions, and (2) long-term, strategic value creation.

Keywords
  • RD0305
  • AR2005
  • AR0405
  • LOGISTICS
  • FOOD PROCESSING
  • TRANSPORTATION
  • DECISION SUPPORT SYSTEMS
  • OPTIMIZATION MODEL
  • OPTIMISATION MODEL
  • SENSITIVITY ANALYSIS
  • OUTSOURCING
  • SHADOW PRICES