Blue Devil Breweries

1
Blue Devil Breweries

• Information from Dr. Clarence Martin

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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

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Capital Costs
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Cost/Capacity Parameters of Plants by Size
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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

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Results

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

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Recommendations

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

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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

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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

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Thank You

• Any Questions?