Reference no: EM133106686
OSCM 5140 Supply Chain and Logistics Management - Kwantlen Polytechnic University
Assignment Scenario
ABC organization is a patio furniture manufacturer located in Kelowna, BC. They are currently carrying an abundance of inventory. Inventory turns are only 2.1. The suppliers' delivery performances are satisfactory. They exceed the customer request date by 97%. Quality does not appear to be an issue with the materials received. The typical lead time for most of their suppliers is approximately three to four weeks.
ABC organization has an established agreement with all suppliers that they must provide receipts for any delivery, as they want to ensure no downturn on the production floor. The cycle time to the work-in- progress is between 14 and 16 weeks. ABC organization's delivery performance to their customers is roughly about 58%. Their sales backlog represents at least six months of capacity operation's requirements. They never turn down a customer because they fear the customer may go elsewhere, potentially leading to future loss of sales.
Their finances are not in a decent position to make matters worse. Suppliers demand a net 30 days payment terms, whereas customers' payment terms are net 60 days. Typically, their payment to suppliers is being processed in roughly 70 days. Their finance team is struggling to catch up.
Internal and external customers are frustrated and feel stressed to keep up with the work. Assignment Requirements:
You work as a summer student in the ABC organization. Your supervisor has asked you to identify the issues and recommend the possible solutions to turn around the overall performance in procurement, inventory and forecasting.
Your supervisor is aware that you are currently taking the Operations and Supply Chain Management. How may the concepts, strategies, and/or tools that you gained from week 8 and week 9 will help resolve the current dilemma?
Thus, your supervisor is looking for you to pinpoint the issues and your recommendations. Your identified issues and recommendations must include at least three (3) concepts, strategies and/or tools in procurement, inventory and forecasting.