Question

Scenario 1 Your deliveries to retail stores have not been on time lately, and neither have the departures of loaded trucks from your distribution centers. Load times are well within standards, but the trucks are just not getting on the road on time. Additionally, while you have plenty of space in the warehouse, much of the inventory has been sitting there for much longer than you anticipated and seems to be gathering dust on the shelves. Your vehicle fleet is reaching the end of its economic life span , and routine preventive maintenance is just barely staying ahead of repairs.
a. What do you believe are the root causes for late deliveries? How would you adjust operations to improve this?
b. How does the inventory situation in the warehouse contribute to the issue of late deliveries?

Answer 1

Answer:

Answer is explained in the explanation section below.

Explanation:

1. What are the root causes of late deliveries, according to you?

To begin, we must assess the current distribution network. The route of delivery (roadway), truck driver skills, poor fleet performance/condition, high unloading time at retailer stores, high truck turnover around time, and a variety of other factors are all factors that contribute to late deliveries.

2. How can you change operations to make things better?

Such options for improving the situation include:

Increasing the network's versatility by incorporating a new fleet of trucks of various sizes.

If there are several fulfilment centers, centralizing inventory (aggregation benefits) or locating new ones closer to the retailer's location are both options.

Improved forecasting approaches so that plans can be planned ahead of time

Examining the most efficient or shortest route or path between the warehouse and the retail stores.

3. What role does the warehouse inventory situation play in the issue of late deliveries?

Taking appropriate pre-cautionary steps at the warehouse level is one of the suggested ways to resolve the concerns about late deliveries.

According to the criteria, use LIFO (Last In, First Out) or FIFO (First In, First Out) inventory mechanisms.

Managing inventory at the retailer's shop by requesting additional shelf space or other storage facilities.

Organizing the products in the warehouse by product variety or in a desired series that is convenient to pick up would reduce truck waiting times.

Reviewing inventory levels and replenishing needed inventory on a regular basis to avoid stock outs and ensure safety stock availability.