Designing of Cost-Effective and Sustainable Logistics System: Whirlpool Case

Abstract

Learning outcomes: In this case study, the alternative route designs were observed to significantly decrease transportation costs and the total distance traveled. This decrease in logistics requirements almost halved the annual number of shipments and the time needed for operation and documentation activities. In addition, reduced carbon emissions made this an environmentally friendly transportation model, in line with trends in society. Case overview/synopsis: The basis for this case study was the analysis of Whirlpool Turkey’s transportation system for materials used in the production of white goods. Data obtained through fieldwork and cooperation with company consultants showed that some suppliers have high annual logistics costs. This inefficiency causes time loss and increases the total distance traveled and thus carbon emissions. In the case study, the current application created inefficiency in cost and time management, and therefore, after determining the factors that increase costs, different transportation solutions were developed accordingly. Complexity academic level: This case is particularly designed for undergraduates in the final semester of management courses that specialize in supply chain and operation management. Supplementary materials: Teaching notes are available for educators only. Subject code: CSS 9: Operations and logistics. © 2022, Emerald Publishing Limited.