Assignment:
1. How would you determine the ideal warehouse location? What factors would go into your choice of locations? Describe at least 3 factors.
2. Describe the pros and cons of setting up your own trucking fleet to take product from your factory to the new warehouse vs. using common carriers.
3. Given the high dollar value of your inventory, how can you ensure accuracy of both purchased raw material inventory (in your factory) as well as of the finished product itself in your factory and at the new warehouse?
4. How will planning for equipment capacity needs been done if you use a forecast-based system versus a demand management (JIT) -based system?
(850 to 1,150 words)
5. What would be some key performance indicators that you as the supply chain manager should be measured against in your Part 1 strategic plan?
6. Keep in mind that you are a consumer products firm trying to improve customer service levels, reduce excess inventories, and so forth.
Identify at least 5 of these indicators, showing the formula to calculate them and the source of the information. Describe why you picked these indicators.
For each one, if the indicator showed you being worse than your target, what areas of your SCM system would you look at for possible remedies?
Now assume the plant capacity is only 1,100 per month, but your forecast remains as above. Describe in words, not numbers, how this would change your production plan if your planned safety stock levels are still to be maintained.