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Case 6:

Vijay enterprise

1. The logistical problems in the company are:


The employees are production oriented as a result the stock is increasing in the
warehouse which lacks proper production planning to manage stocks.
The warehouse space is underutilized and lacks skilled labors for warehouse
management
The logistic officials are not professional and use unprofessional logistic practices
which leads to high transportation costs.
No proper transportation policies and information technology used as a result there
is a communication gap and leads to high transportation cost and delay in
transporting the products.

2.

The blueprint for achieving a design that minimizes touches while meeting your service commitments can
be succinctly outlined this way:

Establish customer service offers

Customer locations and lead time

Service expectations

Establish supply points/lead times

Identify current network performance

Facility costs

Inventory costs

Transport costs (inbound and outbound)

Service performance

Test and quantify alternatives for least-cost networks

Consider network transformation, if the benefit will be large enough

To achieve even the simplest revision of a supply chain network requires network modeling software and
careful analysis. Appropriate analytical tools will allow you to test a wide range of cost and service options to
ensure that you use optimal networks and that sensitivities such as demand increases, fuel cost increases, or
changes to the customer service offer are checked.

Case 8:

Computech

1.

The logistical problem of computech was they had limited network for transporting their products to all
the regions, as the demand increased the company lacked the skills to produce and deliver the required
amount and also manage the stock of other products in the warehouse, the man problem was they were
not able to balance the demand and supply of the products as the transportation was only through road
ways and it increased the lead time to deliver it to the customers.

2.

The company can supply products through different means of transport to minimize the lead time to
deliver the products to the customers. The company can use air freight along with road ways to
transport their products and minimize the lead time.
The company can also out source some part of their supply chain operations to skilled vendors as
Operations are rapidly expanding, and outsourcing provides an effective means of quickly accessing
more space, technology, or other resources.
The challenge is to identify the skilled outsourcing partner who can perfom the supply chain activities
using skilled labour and perform effectively in areas like transportation and warehouse to meet the
demand and also to manage the stock.

Case 3.
Mumbai flour mills

1. Mumbai Flour mills, provide high-quality bakery flours to commercial bakers


as well as to the consumer market. The commercial buyers have consistent
demand and brand-loyalty, whereas consumers have minimal brand-loyalty
but also generally prefer known names over store brands. Demand is
seasonal for the flours with the annual break occurring just before Diwali and
slacking off dramatically during January and February. To offset these both,
Mumbai Flour Mills and its major supermarket chain-accounts carry out
special deals and sales promotions.
The Production planning Dept. of the company located at Akola, Maharashtra, has
the responsibility for controlling the inventory levels at the plant warehouse at
2. Reduction: Whereas DON-infected wheat kernels can be identified and
removed in the wheat cleaning process, other forms of microbial
contamination cannot be seen. Several treatments of wheat during the
cleaning process are being investigated and researched to determine their
effectiveness in lowering the microbial load of flour.
One processing method that has proven effective is aggressive scouring or abrasion
of the wheat to remove the outer layers of bran prior to milling.

3. Recently the company has experienced two major stock out for its consumer-size
5 Kg. sacks of refined quality white flour. One of these was due to problems in
milling operations, the other occurred when marketing initiated a buy one, get one
free coupon promotion. Since these events, the planning has become overly

cautious and errs on the side having excess inventories at the distribution centres.
Additionally, two other events have affected Distribution Centres throughput:
(1) implementation of direct factory supply for replenishing the five largest super
market chains, and (2) a price increase making Mumbai Flour more expensive

Case 4
Mordern garments

1.
M/s Modern Garments is the manufacturers of Ladies and Gents garments like
shirts, tops and undergarments etc. The technology is advanced and there are
several players with access to such latest technologies. The supply chains for M/s
Modern Garments includes significant purchases of raw material, stitching,
packaging and supply to customers. The logistics functions are the key competitive
elements in the market

(ii) How to reduce the cost of inbound and outbound logistics functions?

A Collaborative Resource

Because of their unwieldy size, and lengthy preparation and printing time, many
routing guides are already outdated by the time they are distributed. In an attempt
to stay current, some shippers issue supplements and revised pages throughout the
life of the guide.

As cumbersome and impractical as this process is for the issuers, it is at least as


painful for the recipient. Neither buyer nor seller can deploy changes quickly, or
even place the changes into a workable process. If getting the information out on
time is impossible, it is equally impossible to take advantage of significant
transportation opportunities that are available throughout the shipments entire life.

iv) Is it advisable to have dedicated transport system to operate packaged


materials mainly for thecompany?

Now in the market only garments with good delivery quality are acceptable. All the
competitors have equally good quality product in the market. Presently the area of logistics
distribution, customer service and satisfaction are the area of prime concern in order to
have extra value addition to the product. The product defects due to stitching, cutting and
transportation are now under increasing scrutiny. From the cost control point

(v) What arrangements have to be made to ensure the service quality for
customers?

Due to product variations, the order fulfillment and its processing is of considerable
importance. The traditional information system has become inadequate. There are over 500
retail outlets through which the finished products are distributed with the help of more than
50 transporters. Lead- time variability is creating problem of buffer stocks with distributors.
The transit time fluctuations are due to the breakdown of trucks, improper documentation
and unfair practice of over charging of the vehicles etc. Such variability has to be reduced.

Case 7
Decorative laminates

1. What is the main problem in this case? What are your suggestions to the
company on invenorymanagement?
M/s. Decorative Laminates Corporation (DLC) is a supplier of decorative sheets for
wooden furniture makers in domestic as well as commercial markets. In spite of
competition in this field their sales volumes shown growth during last 2 to 3 years.
The last year was recorded 15% more sales compared to previous year. Even
though the sales volume are increasing the profit margin is getting reduced day by
day due to future competition.

2. What type of logistical cost approach you would suggest to the company?

Intrafunctional logistics focuses on the coordination of the inbound logistics and


material management as well as cost efficient distribution while supporting the
customer services goals. All of these activities are coordinated in many different

ways and often logistics managers use the total cost approach to find the most cost
effective solutions.

The total cost approach is generated the idea that all activities that are found within
the moving and storing of goods and products need to be thought of as a whole,
their total cost. It uses cost trade-offs, when logistics expenses may increase in one
area