Please Read And Understand Both Word And Excel Sheets Attach ✓ Solved

Please read and understand both word and excel sheets attached

Please read and understand both word and excel sheets attached. I need calculations on the excel sheet. Identify other risk domains and factors contributing to the risk domains based on the available supplier data. Develop a comprehensive risk scoring methodology and identify suppliers that pose the most risk. Estimate the change in the inventory position to understand the working capital impact in one of the most critical plants in Switzerland, GlasWork.

Identify the capacity constraint for Fabricadas, the new facilities in Chicago, due to the sudden increase in demand for their products in the US. Provide recommendations on how it should meet the increase in demand for these products. Explain why the Plant Manager feels the capacity is inadequate and why the VP Operations feels the capacity is enough. To explain mostly calculations are a must. Also, you need to give a creative solution for the supply chain to be more efficient and write a report for about 15 pages.

Textbook reference: Supply Chain Management (Sunil and Chopra).

Paper For Above Instructions

In today’s fast-paced business environment, effectively managing supply chain operations is essential for the sustainability and growth of companies. This report will analyze a number of critical aspects surrounding supplier risk, inventory management, and capacity constraints impacting GlasWork and Fabricadas. The methodologies developed and insights gained will inform decision-makers on how to address challenges effectively and provide strategic recommendations that ensure efficiency and resilience in supply chain operations.

Understanding Risk Domains and Supplier Data

Risk in supply chain management can manifest in multiple domains. Based on the supplier data available, we can identify several risk domains including operational risks, financial risks, geopolitical risks, and reputational risks. Operational risks may stem from supplier reliability and performance issues, while financial risks could be related to the liquidity and creditworthiness of suppliers. Geopolitical risks include changes in trade policies and regulations that may affect supplier operations, and reputational risks concern the public perception of suppliers which can impact overall brand image.

To engage with these risks effectively, a comprehensive risk scoring methodology is essential. Risk factors should be classified and scored, enabling a clear understanding of the potential threats posed by various suppliers. Factors such as supplier financial stability, historical performance metrics, compliance with regulations, and market variability should contribute to the overall risk rating. For example, a supplier that has demonstrated consistent on-time delivery and has a robust financial record may score low on risk compared to one that has faced recent legal issues or supply disruptions.

Calculations and Inventory Position Change

Estimating the change in inventory position is crucial for understanding the working capital impact on GlasWork. This can be calculated based on projections for demand, lead times, and inventory turnover ratios. Using historical sales data and projected growth rates, one can forecast the demand for parts and materials needed in production. For instance, if GlasWork experiences a 20% increase in demand over the next year, appropriate adjustments in reorder points and safety stock levels must be calculated to accommodate this growth without incurring excess holding costs.

Inventory Change Example: If GlasWork’s current inventory position is valued at $1,000,000 and the estimated increase in demand leads to an additional $300,000 in inventory needs, the total additional working capital required would be $300,000. Accurate accounting practices must track these changes to ensure financial stability.

Identifying Capacity Constraints at Fabricadas

The emergence of a sudden increase in demand for Fabricadas’ products in the U.S. signals potential capacity constraints. Capacity constraints can be defined as the maximum output that a production facility can sustain without overworking its resources, which can affect product quality and delivery timelines. The Plant Manager may feel that current production capabilities are inadequate due to extended lead times, bottleneck processes, and increasing backlogs of orders. On the other hand, the VP of Operations may believe existing capacity can suffice by enhancing worker efficiency or optimizing existing machinery usage.

To address this divergence of opinion, capacity analysis techniques such as throughput analysis can be employed. Estimating current production output against actual demand forecasts will help clarify where the gaps are. For example, if Fabricadas’ current capacity is 500 units per day and demand spikes to 700 units per day, a tangible gap exists that necessitates immediate attention.

Recommendations to Meet Increased Demand

To meet the increasing demand for products at Fabricadas, several recommendations can be made:

• Invest in new machinery that enhances production capabilities without compromising quality.
• Implement flexible workforce arrangements, allowing for increased labor hours during peak demand periods.
• Assess and potentially shift production schedules to off-peak hours to maximize output.
• Enhance supply chain partnerships to improve lead times and ensure raw materials arrive in a timely manner.

Enhancing Supply Chain Efficiency

In addition to addressing the immediate concerns surrounding demand and capacity, a longer-term strategic focus on supply chain efficiency is essential. Implementing lean manufacturing principles can significantly streamline operations by eliminating waste and focusing on value-added processes. Regular training and development sessions can empower employees to identify and solve inefficiencies within their roles, ultimately leading to a more adaptive and responsive supply chain. Moreover, digitizing key processes through technology adoption, such as real-time data analytics, can provide insights into operational performance and inform proactive decision-making.

Conclusion

To navigate the complexities of modern supply chain management successfully, companies such as GlasWork and Fabricadas must prioritize understanding risk domains, making informed calculations regarding inventory and working capital, and addressing capacity constraints strategically. By leveraging comprehensive methodologies and calculated insights, it is possible to effectively manage the inherent uncertainties in the supply chain landscape and emerge stronger. Implementing innovations and efficiency measures not only align with current demands but also pave the way for sustainable growth in the future.

References

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