Develop a Supply Chain Management Strategy Proposal

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Business Finance

Description

Develop a Supply Chain Management Strategy Proposal, specifically dealing with the following scenario. The scenario centers around the choice of a location for a new distribution center for your firm's insulated cooler products. As you know, these are large and bulky and take up a lot of room in either a truck (from a warehouse to retail stores or in a warehouse itself). Your factory is in the Chicago area, and you do not want to move it, nor outsource the manufacturing. Your product is used year round in the southern states and southwest, and in the summer months on the east coast.

  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?
  5. Create a finished goods production plan MRP (and component B procurement plan) given the following:
    • Production cycle time = 1 month
    • Each finished good item requires 2 Part B’s; part B has a 1 month procurement lead time
    • Beginning finished product inventory is 1,000
    • Forecasted sales are as follows:
      • Month 1: 1,000
      • Month 2: 1,100
      • Month 3: 1,150
      • Month 4: 1,200
      • Month 5: 1,200
      • Month 6: 1,300
    • Safety Stock: On the first day of each month, you want to have that month's sales already in inventory
    • Capacity of the plant is 1,300 units
    • Download the blank MRP template to complete your MRP.
    1,150-1,350 words
  6. referneces
  7. cite work

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Explanation & Answer

Attached.

Supply Chain Management Strategy Proposal
Introduction
The field of production has undergone vast advancement in terms of storage. With this
increased volume of production to meet high demand of products, storage has stood out as an
issue that requires paramount concerns in the current times. Warehouses offer a lot of benefits
such as easy accessibility, simplified communication and help in facilitating supply chain
management. Today, products can be made in one place and ferried to their destinations within
time. Physical services coupled with virtual online systems of interconnected computers facilitate
efficient storage and transportation. However, as good as this may sound, there are various issues
face storage of products such as initial capital of setting up warehouses and costly charges for
warehouse Services. These challenges face many organization and contribute to inefficiencies in
the supply chain. Therefore, an effective and efficient storage management solutions is required
to sustain the chain of supply in the product market.
As the storage manager for a huge company having been with the company through years of
success in production storage and distribution of products, I can attest that business success is
solely based on the success of management. If a good storage management is maintained, the
company could be a leading producer and distributor of products in the competitive Chicago
market. However, with the current state of technological advancement, the company has faced
major challenges due to poor handling of produced goods. Most products end up damaged and
others go stale before they re...


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