Buckeye Power & Light Co.

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Buckeye Power & Light Co.

Group 5

Today’s Agenda  Introduction of SCOPE consulting  Business Overview  Introduction of POW

 Analysis Ø Immediate Planning Ø Vendor Supply Ø Price Sensitivity Ø Long-‐Term Contracts  How POW works

 Conclusion

SCOPE Consul4ng Team, LLM  Collaborative consulting

team  Specialize in the coal industry

 Proven track record -‐ i.e. Powell Products case of helping companies identify procurement plans that will be the most cost eﬀective and improve eﬃciency.

Business Overview  Production Fuels Department,

Buckeye Power & Light Company  Don Peters tasked to optimize procurement

 Long-‐term contracts  Safety-‐stock levels  Minimizing costs

POW Overview  Procurement

Optimization Wizard for Buckeye Power & Light Company

 Customized application

Immediate Planning  Based on assumptions given from Buckeye Power and

Light Company:  The lowest cost procurement plan is:

25,240 total tons shipped to Athens

32,721 total tons shipped to Steubenville

20,228 total tons shipped to Zanesville  This amounts to a total cost of $3,165,119.70

Price Sensi4vity

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