ITLS6002 Supply Chain Planning and Design
鉴于短缺，两家创新的悉尼树脂生产商“ exlRZN”和“ nuResin”已经
The golf industry in Australia is large, with recent estimates indicating that the industry accounts for
over a billion dollars of economic activity in tourism, retail, coaching and training1
. In fact, Australia is
one of the top 10 golfing countries in the world. During the COVID lockdown period, golf was one of
the few sports that a person could play and thus the industry has experienced a boom over 20202
This boom, combined with fractured supply chains due to COVID-19 and international border closures,
have led to shortages in golf balls across the country (particularly as those new to the sport lose golf
balls at an alarming rate).
Given the shortages, two innovative Sydney based resin producers, “exlRZN” and “nuResin”, have
spotted an opportunity in the market and have decided that if they were to merge operations, they
could quickly produce enough high-quality golf balls to supply the market
. With their new technology
they also feel confident that once international borders re-open and their new golf has established
itself as one of the best in the market, they will be able to export their golf ball globally.
Both companies anticipate that, as a merged company, they will achieve considerable cost savings in
terms of their logistics operations, and so compete more effectively. They propose to operate under
the name “FarSpin” and have engaged your consulting firm to perform the required analysis, design a
new network for the merged company, quantify any possible savings, and make recommendations.
Currently, both companies have a single plant each in the Sydney region, located in Prestons (exlRZN)
and Quakers Hill (nuResin). They will serve a market with two types of customers:
• Big golfing retails (Drummond Golf, Golf World and Power Golf) where deliveries are made
directly from the plants to the distribution centres (DCs) of the chains, who then manage their
own their own distribution to their stores.
• A larger number of independently owned small golf stores and pro-shops that are located on
golf courses. Deliveries to these locations are to be made in a light commercial van which will
make deliveries to multiple customers per delivery run.
From their other operations (both companies also produce resins and plastics for other purposes),
each company has pre-existing DCs of their own, which they make deliveries too in a heavy truck,
while the delivery runs from the DCs to the customers are made with light trucks. The light trucks are
more practical for the delivery of relatively small orders to each store, in locations that may not be
suited to larger trucks.
Indeed, you can assume that as “FarSpin” the merged companies will allow the production and
distribution of golf balls to occur in any part of the pre-existing supply chain, in order to make the joint
venture as optimal as possible.
FarSpin would like your consulting company to complete the following tasks:
1. Optimise the existing facilities of exlRZN and NuResin assuming they are able to service golf
ball demand as it stands for the two separate companies (to use as a baseline for
2. Take the existing network and start to optimise it, closing DCs as necessary, and compare the
performance to the baseline scenario.
3. Investigate to potential future production scenarios:
a) Maintaining joint production at the existing two plants
b) Closing these plants and replacing them with a single, higher capacity plant.
Management have requested that you to present them with a report, which effectively communicates
the solutions that you have arrived at. In addition, they would like to see an Excel file containing your
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