Case 1 Product A111811512212925212219226353123193264249 ✓ Solved

Case 1product A1118115122129252122192263531231932642494

Analyze the supply chain scenario for Product A over the given timeline, focusing on effective routing to prevent stock shortages or excesses. Determine the fastest method to balance air and ocean shipments, considering transit times, pallet sizes, and fixed purchase order (PO) expected delivery dates. Fill in the "PO ETA" for each PO based on shipping modes, color code quantities planned by air versus ocean, and consider adding supplementary columns or rows if necessary to clarify the results.

Sample Paper For Above instruction

Introduction

Efficient supply chain management is crucial for maintaining optimal inventory levels and ensuring customer satisfaction. This analysis examines the case of Product A, with a detailed timeline spanning from January to June, focusing on optimizing shipment routing to avoid stockouts and excess inventory. The primary goals include effective routing of shipments, balancing the use of air and ocean modes, and ensuring timely delivery aligned with the fixed PO ETDs. Understanding transit times, shipping constraints, and inventory targets forms the foundation for strategic planning in this scenario.

Context and Background

Product A’s supply chain involves multiple Purchase Orders (POs) scheduled across various weeks, with specified ETDs (Estimated Time of Departure) and fixed PO ETDs, indicating when goods are scheduled to leave the supplier. The challenge lies in calculating the PO ETA (Estimated Time of Arrival) based on shipping mode—air or ocean—and transit durations. The pallet size, shipping minimums, and objective to maintain a 21-day Days of Supply (DOS) are critical variables influencing planning.

Analysis and Approach

The analysis begins by establishing the timeline and reviewing the shipping parameters. The standard pallet size is 2160 units. Air freight offers faster transit (approximately one week), while ocean freight takes about six weeks. Shipments must adhere to minimums, and delivery schedules must meet or beat the fixed PO ETDs to prevent inventory shortages. The primary task involves calculating PO ETA based on PO ETDs and transit times, then mapping these against demand and inventory levels.

Calculating PO ETA and Balancing Shipping Modes

For each PO, the ETA depends on the shipping mode selected. For example, shipments planned via air should be scheduled to arrive at least one week before the demand date to accommodate unloading and inventory buildup, whereas ocean shipments, with longer transit, must be initiated well in advance—around six weeks prior to the demand date.

To illustrate, if a PO's ETD is scheduled for January 8, an air shipment would ideally arrive by January 1, while an ocean shipment should arrive by December 27 of the previous year, considering transit durations and lead times.

Color coding different quantities for air versus ocean aids in visualizing the mode distribution—potentially with blue for air shipments and green for ocean shipments. Additional columns can include "Planned Shipment Mode," "Expected Arrival," and "Adjusted PO ETA" to highlight timing and mode choices.

Inventory Management and DOS Objective

Maintaining a 21-day DOS requires aligning the shipment arrivals with demand forecasts, ensuring stock levels remain within target ranges. If shipments are delayed or expedited, adjustments in planning are necessary to prevent stockouts or overstocking. Inventory at the end of each period is tracked to ensure alignment with objectives.

Results and Recommendations

By systematically calculating PO ETAs based on shipping modes—air or ocean—and mapping these against demand timelines, supply planners can optimize routing. For POs with tight schedules, prioritizing air shipments ensures timely delivery. Conversely, ocean shipments may be scheduled for earlier requests, especially when inventory levels are sufficient.

Implementing a hybrid strategy that uses ocean freight for bulk shipments and air for urgent needs optimizes costs and responsiveness. Continual monitoring of inventory levels relative to DOS ensures adjustments can be made dynamically, maintaining smooth supply chain operations.

Conclusion

Effective routing of shipments for Product A hinges on accurate calculation of PO ETAs considering transit modes and fixed ETDs. Balancing air and ocean shipments based on urgency, costs, and inventory considerations enables the avoidance of stockouts and excess inventory, aligning with the company's inventory targets and DOS objectives. Strategic planning combined with real-time adjustments ensures supply chain resilience and operational efficiency.

References

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