Manufacturing footprint strategy for product line expansion

Abstract

To reach its long term revenue targets, EDSCO Fasteners must expand its smooth bar anchor bolt product line to increase revenue generation. In order to maximize profit during this expansion, an operational strategy must be developed to minimize total landed cost. This project will assess the current manufacturing processes and develop a realistic and practical model of the supply chain. Using data collected through pilot project implementation the model's parameters are calibrated and the model accuracy is validated. By developing this model as a linear optimization program it can be used as a decision support tool to inform the operational strategy. Likely expansion scenarios and decision points (consolidation, acquisition, capital expenditures, etc.) are considered as decision variables in the supply chain optimization model to minimize total landed cost. These results are used to inform a recommended scenario based strategy for product line expansion.