Collaborative aggregate planning in Supply ChainTable of contentProject summary1. INTRODUCTIONShared resources among companies with similar work process is an effective way to maximize profit....

Collaborative Aggregate Planning in Supply Chain
Table of Contents
Project Summary    3
1.    Introduction    4
1.    Problem Description    5
2.    Objective    6
3.    Benefits and Deliverables    7
4.    Literature Review    7
5.    Project Plan    10
6.    Methodology    11
7.    Resources    15
8.    Expected Outcome    17
9.    Result    18
10.    Conclusion:    19
11.    References    21
Project Summary
· In the context of this project, two logistics companies C.H. Robinson and Expeditors are selected to attain the overall objectives of the study.
· Project focuses on collaborative aggregate planning in the supply chain, which is an effective method for the business organizations to maximize profit by sharing resources.
· The problem statement is two US logistics companies such as: XPO Logistics and C.H. Robinson planning to share resources and a linear program model detailing the shared resources arrangement using collaborative aggregate planning is required.
· Main aim of the project is to develop a collaborative aggregate planning model by using linear programming and excel solver for two logistics companies Expeditors and C.H. Robinson in the supply chain (Zibaei, Hafezalkotob & Ghashami, 2016)
· Objective of the project is to minimize operational experiences/costs by matching production capacity with demand in line with the resource-sharing arrangement.
· Core purpose of the project is to improve the effectiveness and efficiency of the supply chain by developing a comprehensive and accurate model that facilitates collaboration between Expeditors and C.H. Robinson, improves production efficiency, reduces overall costs, and enhances customer satisfaction.
· The expected outcomes is a successful implementation of a collaborative aggregate planning model that maximizes profits and reduces costs for both the logistics companies XPO Logistics and C.H. Robinson (Zhu, Hui, Zhang, & He, 2018).
· The methodology used in this project is the use of linear programing and excel solver. The deliverables of this project include a comprehensive literature review, a detailed project plan, and a successful implementation of the collaborative aggregate planning model using the chosen methodology.
· The benefits of this project include cost reduction, increased profits, improved efficiency, improved customer service, improved strategic planning, enhanced collaboration and increased flexibility for the logistics companies involved.
· Overall, the successful completion of this project will lead to a more effective and efficient supply chain, reduction in overall operational costs and improving profitability. Additionally, the model can aid in long-term strategic planning and enhance collaboration between different departments within the supply chain. The project represents an important step towards improving the competitiveness of logistics companies in a supply chain by developing a collaborative approach to aggregate planning (Zaidan, Atiya Abu Bakar & Zaidan, 2017).
Introduction
XPO Logistics is considered one of the largest, leading and fast growing American logistics and Transport Company in the global world with more than $15 Billion in annual revenue. The company has strong brand reputation and presence in Europe, and North America. XPO Logistics’ headquarters are located in Connecticut, U.S. XPO Logistics provides a range of logistics services like warehouses, transportation, and supply chain management to its customers. In the USA, the company is the second-largest logistic company by revenue, employees, market share, and profit. The company helps its customers by offering supply chain management services so that they can optimize their logistics operations. The company has a team more than 1200 supply chain professional who work with customer to enhance their transportation network, reduce costs and improve efficiencies.
It is analyzed that the company is facing challenges/issues in its supply chain planning due to complex manufacturing process, multiple distribution channels and supply chain experts, increasing transportation costs, limited visibility of shipments, delivery delays and varying customer demands. To overcome and manage these supply chain related issues/challenges, the company decided to implement a collaborative aggregate planning process. So, it is decided by the top management of the company that it will work with the C.H. Robinson which is one of the leading logistics companies in the USA, with over $13 billion in annual sales.
By implementing collaborative aggregate planning process with C.H. Robinson, XPO Logistics will be able to share resources, maximize profit, reduce costs and overcome supply chain issues. The collaborative aggregate planning will allow the company to effectively share resources with other organization. Aggregate planning will allow the company to create a baseline schedule that outlines how the company will operate over a specific time frame. It enables planner to evaluate and reduce risks, establish more effective systems, and approach inventory and staffing with clear eyes. This paper will discuss the inputs and outputs in aggregate planning, basic tradeoffs in aggregate planning, strategies in aggregate planning, aggregate planning using linear programing and excel, and the role of software in aggregate planning (Yaghin, Torabi, & Ghomi, 2012)
1. Problem Description
The logistic company XPO Logistics had difficulties or issues in managing its production schedules, inventory levels and distribution schedules. The demand forecasting is not accurate which creating the issue of excess inventory. XPO Logistics also faces issues in coordinating with its customers, suppliers and distribution which negatively affected company’s operational efficiency. So, it is decided by XPO Logistics that it will use collaborative aggregate planning process to manage the supply chain and logistics issues. Therefore, XPO Logistics will come with another logistic company C.H. Robinson and planning to share resources like warehouses, personals, trucks, and equipment to reduce excess costs, overcome supply chain & logistics issues, and improve overall profit and revenues (Wu, & Williams, 2003).
    Based on the above scenario, it is identified that the main problem addressed by this project is the lack of a comprehensive collaborative aggregate planning model between two logistics companies (XPO Logistics and C.H. Robinson) in supply chain. In the present time of competitive business era, most of supply chain and logistics companies prefers to run and operates their business activities individually with little coordination and collaboration which can lead to inefficiencies, excess inventory, high transportation costs and other that can negatively affect overall profitability of the supply chain (Wang, &Yeh, 2014).
But, collaborative aggregate planning is a strategic process that focus on coordinating production, inventory and transportation among the logistics companies in the supply chain. The key objective of this is to optimize the resources allocation, improve profit, and reduce operational costs to meet the demand. Nonetheless, developing aggregate planning model can be a complex task because it requires more time, efforts and money. Therefore, the problem communicated by this project is the need for a comprehensive and accurate collaborative aggregate planning model using linear programming and excel solver that consider shared resources and minimizes operational costs. Such model would facilitate collaboration among the XPO Logistics and C.H. Robinson and improve production efficiency and customer satisfaction by reducing overall costs (Torabi & Hassini, 2009).
2. Objective
Based on the above problem description, the main objective of this project is to implement an effective collaborative aggregate planning process that would help XPO Logistics and C.H. Robinson manage their supply chain more effectively. This process would allow the companies to forecast demand accurately, coordinate with distributors, suppliers and customers and optimize inventory levels, production schedules, and distribution schedules. Therefore, the fundamental objective of this project is to develop and implement a collaborative aggregate planning model by using linear programming and excel solver for the logistics companies such as: XPO Logistics and C.H. Robinson in the supply chain. The collaborative aggregate planning aims to reduce overall operational costs/expenses by matching production capacity with demand in line with the resource sharing arrangement (Techawiboonwong & Yenradee, 2003).
The specific objectives of the project include:
· To create and execute an inclusive linear program model for collaborative aggregate planning between XPO Logistics and C.H. Robinson
· To utilize the model to assess numerous scenarios and make more informed and accurate decisions based on related data.
· To collaborate with the stakeholders from the logistics companies to analyze various scenarios and make well-versed decisions
· To execute the production plan via collaborative planning
· To coordinate the inventory, production and transportation related activities among the two logistics companies (Singhvi, & Shenoy 2002).
· To monitor the performance of supply chain and adjust the plan as necessary
All these objective will be achieved by developing an accurate and reliable model, collaborating with stakeholders to make informed decisions, and implementing the production plan based on accurate and relevant data. The ultimate goal is to improve the profitability of the supply chain while enhancing customer satisfaction.
3. Benefits and Deliverables
The benefits and deliverables of this project are discussed as below:
· Reduction in the Cost: This model will allows the logistics companies to optimize their resources which can minimize operational costs and improve profitability.
· Improved Efficiency: This model will play key role in improving the overall production and supply chain efficiencies of XPO Logistics and C.H. Robinson by ensuring that resources are allocated in the most efficient manner (Silva, Lisboa & Huang 2000)
· Improved Customer Service: This model will allow the company to fulfill the demand of its customers timely and results in improved customer satisfaction and customer service.
· Improved Strategic Planning: The model will also help the logistics companies to make long term strategic plan based on accurate and relevant data. Therefore, the logistics and supply chain manager would be able to make more informed and accurate decision.
· Enhanced Collaboration: The model will facilitate collaboration between different departments like finance, marketing, HRM, Sales, Production & operation within the supply chain, improving communication and collaboration (Ruben & Lerman 2005).
· Increased Flexibility: The model will allow the companies to see changes in the demand or production capacity.
Moreover, the deliverables of the project includes a comprehensive linear program model for collaborative...