DHL SUPPLY CHAIN Case Study Solution
The carbon dioxide emission is got by multiplying the number of units toper unit cost of emission of their respective modes. By using these modes of transportation in order to transport LCD 42" and LCD 32"from the manufacturing point to the destination, the total carbon dioxide emission is as follows.
The total carbon dioxide emission is7401245.
All the assumptions are taken that are provided in the case in order to optimize the original supply chain effectively,such as the minimum and maximum number of units that are produced for LCD 42" and LCD 32".The minimum and maximum number of units that are transported through the different modes of transportation and the budget constrain of 3 billion.
Evaluate the extent of the reduction in CO2 emission if the budget were increased by 10 percent to CNY 3.3 billion.
If the budget would increase by 10 percent from 3 to 3.3 billion so the carbon dioxide emission would be reduced to 3,479,982. This shows a reduction of 53 percent of carbon dioxide. The percentage change in the reduction is getting by diving 3,479,982/7,401,248.
The sensitivity analysis should be done by increasing the budget from multiple percentages in order to analyze the effect on carbon dioxide. The possible percentages of increase in the budget are from 1 percent to 20 percent. The increase in the budget is plotted on the x-axis and the emission in carbon dioxide by using the solver is plotted on the y-axis. The graph shows that by increasing the budget, the reduction in carbon dioxide occurs because by increasing the budget, the company would enable to use of different modes of transportation which would affect the emission of carbon dioxide. If the company would improve its budget by 2% the carbon dioxide emission would reduce to 5,513,809,which is considered to be 26% reduction in carbon dioxide. Furthermore, if the company increases its budget consistently, the reduction in carbon dioxide would occur, which is shown in appendix-1, and the graph is given in appendix-2. (Ciuffo, Punzo, & Montanino, 2014).
Conclusion
On the basis of the above analysis, it is concluded that consumer electronic company (CEC) should increase its budget that enables DHL to choose the shipping mode which is eco-friendly. By increasing its budget, the company would be able to reduce the emission of carbon dioxide. The lowest emission of carbon dioxide would be possible by using the water transport. However, water transport is considered to be the lowest mode of transportation, but are considered to be the most eco-friendly transportation among all the available modes of transportation. Moreover, the company would transport its product by using different shipping modes in case of urgency, but the preference of the company would be water transport....................
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