Date: | December 2, 2014 | To: | VP of Operations of Supply Chain Management, Jacobs Industries | From: | Supply Chain Game Group: frontrow | Subject: | Executive Summary for Jacobs Industries |

Introduction Business Situation Jacobs Industries is faced with a difficult challenge in the development of an efficient and profitable supply chain strategy. Jacobs Industries produces an industrial chemical, more specifically a foam chemical, which can be used to produce very efficient thermal and acoustic insulators. Because of these insulator properties we have started to market to manufacturers of air conditioner retrofit kits, a highly variable demand market. In addition to the complexities associated with forecast and …show more content…

Our strategy was to meet as high of a demand level as possible in all regions while still making profit. However, we know realistically that meeting all demands is impossible so we used appropriated forecasting methods for each region to decide our inventory policy in order to achieve profit as high as we can. Calopeia graph has a seasonal pattern so we used seasonal forecasting method. We used Linear Regression for Sorange. Three-period moving average and exponential smoothing are both used to do forecast for Tyran and Entworpe. As we learned from round 1, total annual cost will be slower as using truck than using mails. Therefore, we changed all shipping method from mail to truck. We also planned to change it back to mail at the end of the game. At the beginning of the game, we initially increased capacity of all regions having factory in order to build up WIP and satisfy demands. We noticed outbound shipment will cost a lot so we immediately built 2 warehouses at Tyran and Entworpe. We also unchecked all the boxes for outbound shipments so each warehouse only serves customers within its region. However, since it took 90 days to build warehouses in Tyran and Entworpe so during those 90 days, we let Calopeia and Sorange to make out-of-region shipments by allowing Calopeia’s warehouse to satisfy Tyran’s customers and Sorange’s warehouse to