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(Supply Chain Logistics Management 444) To avoid material shortages and thereby

(Supply Chain Logistics Management 444) To avoid material shortages and thereby

(Supply Chain Logistics Management
444)
To avoid material shortages and
thereby maximize production, DEP normally maintains a 7-day supply of each
compound. An earlier attempt at JIT manufacturing was abandoned after DEP
experienced material shortages and production shutdowns. As a result, the man-
ufacturing department is opposed to any reimplementation of JIT-type concepts.
The manufacturing department is
electronically linked to the procurement and market- ing/sales departments.
Marketing/sales receives customer orders by phone or facsimile. The orders are
then entered into the information system. This allows manufacturing to monitor
incoming materials shipments as well as schedule production runs. Under this
system most customer orders are produced within 6 to 8 days of order.
Following production, orders are
immediately sent to a warehouse a short distance from DEP. At the warehouse
shipping personnel verify manufacturing tickets, match the manufac- turing
ticket with the purchase order, and prepare shipping documents. Once the
shipping doc- uments are completed, the order is prepared for shipment (e.g.,
palletized, shrink-wrapped) and labeled. Once a shipment is labeled, delivery
is scheduled. Three to 6 days normally elapse from the time an order leaves
manufacturing until it is shipped from the warehouse.
Market distribution is divided
between the private DEP truck fleet and common car- riers. The majority of
DEPs customers are within a 200-mile radius. DEP trucks service these
customers via twice-a-week delivery routes. Customers beyond this delivery zone
are serviced through common carriers; delivery time fluctuates according to
location and distance but rarely exceeds 6 days from time of shipment.

Prepare a case analysis for Case 1
and answer question1/prepare diagram at the end of case 1 (include as an
appendix to the case).

1. Diagram the DEP/GARD supply chain.
What stages are adding value? What stages are not?
(Supply Chain Logistics Management
444)To avoid material shortages and
thereby maximize production, DEP normally maintains a 7-day supply of each
compound. An earlier attempt at JIT manufacturing was abandoned after DEP
experienced material shortages and production shutdowns. As a result, the man-
ufacturing department is opposed to any reimplementation of JIT-type concepts.The manufacturing department is
electronically linked to the procurement and market- ing/sales departments.
Marketing/sales receives customer orders by phone or facsimile. The orders are
then entered into the information system. This allows manufacturing to monitor
incoming materials shipments as well as schedule production runs. Under this
system most customer orders are produced within 6 to 8 days of order.Following production, orders are
immediately sent to a warehouse a short distance from DEP. At the warehouse
shipping personnel verify manufacturing tickets, match the manufac- turing
ticket with the purchase order, and prepare shipping documents. Once the
shipping doc- uments are completed, the order is prepared for shipment (e.g.,
palletized, shrink-wrapped) and labeled. Once a shipment is labeled, delivery
is scheduled. Three to 6 days normally elapse from the time an order leaves
manufacturing until it is shipped from the warehouse.Market distribution is divided
between the private DEP truck fleet and common car- riers. The majority of
DEPs customers are within a 200-mile radius. DEP trucks service these
customers via twice-a-week delivery routes. Customers beyond this delivery zone
are serviced through common carriers; delivery time fluctuates according to
location and distance but rarely exceeds 6 days from time of shipment.Prepare a case analysis for Case 1
and answer question1/prepare diagram at the end of case 1 (include as an
appendix to the case).1. Diagram the DEP/GARD supply chain.
What stages are adding value? What stages are not?

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