Purcell Tire Warehouse Efficiency Project individual Proposal
Process Background
Currently, Purcell are keeping their commercial tires with facility because of lacking
storage place to keep them at warehouse; and the Phoenix warehouse is too small to keep
all of tires which include passenger tires and commercial tires. Our team needs to find out
how much inventory the company need to place at the Phoenix warehouse and the new
warehouses. Base on this, the team need to analyze their currently selling data to find out
what would be the optimization options for keeping inventory, and we need to focus on
minimizing transportation cost and the shortest leading time. After this, the team need to
find out what would be the reasonable size and exact locations for each of new warehouses
based on the selling data we analyzed.
Desired State
Purcell is deciding whether they need to add two to three more warehouses. One in Salt
Lake, Utah which would serve 4 retail stores. One in St. Louis, Missouri which would
serve 17 retail stores in the area, and an additional 4 retail stores along the east coast. Also
Purcell is considering an additional one in the Phoenix, Arizona. Purcell wants to utilize 80
percent of all warehouse capacity in order to low need to purchase tires from competitors.
Also Purcell wants their warehouses to average 12 inventory turns per year. In conclusion,
Purcell feels if they have the right tires close by in their warehouses, they can keep the
customer in the store which lowers the chance of that customer going to their competitors.
