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CASE STUDIES IN LOGISTICS(Prof Parshuram - 26606780/26605814)
Case Study
No. 1
Super Dolls is a toy manufacturing company which is in the business for the past two decades. The manufacturing unit issituated in Mumbai, while its sales and marketing are spread over a large geographical area, especially in the major citiesacross the country. Over the years, a number of competitors have sprung in the field. Far from child’s play, the companyfound that the toys’ sector is a tough business. Some of the problems faced by it are:
Ø
There is a massive sale during the festival seasons. If the company’s product is delayed, the valuable market ismissed.
Ø
“Fashion” or “cult”
status
products influence the market. Any wrong decision in this matter, means loss of salesand build-up of unwanted inventory
Ø
There are high marketing and promotional costs. If these programmes go out, the sales drop massively
Ø
Any
misjudge
of the market can also mean closing down of the company
Ø
The company has problems regarding stock holding at its distribution centers. This is mainly due to wrong inputsfrom feedbacks and improper surveys.
Ø
The company relies mainly on hired fleet of road transport. The services are not up to the mark in terms of deliveryschedules, safety of goods from pilferage/theft, and mishandling of product.
Ø
Marketing strategies are far from adequate. They are not effective enough to counter the strategies adopted by thecompetitors.You are called upon by the management of Super Dolls to head their logistics operations. You are required to study andguide the company regarding the following matters.a)Warehousing at distribution centers and large retailers to cut down inventory costs plus other suggestions in order toreduce inventory carrying costsb)Advantages of outsourcing in terms of preparing girls’ and boys’ toys, toys in local languages, toys for different ageranges, packaging, effecting savings on damages/transport, responding fast to customers’ requests, etc.c)Alternatives with regard to having own fleet of trucksd)How to cut down cost on advertisement campaigns by alternative forms of spreading awarenesse)Suggestions to counter competitors’ strategies
Case Study
No. 2
The management of Yummy Noodles Company was contemplating on introducing 200 grams pack of savory noodles into theIndian market at Rs. 10 per pack. This was only for one month which was construed to be as a test marketing period. Duringthis period, the Company wanted to have a “blitz” strategy of flooding the market with their product.In the subsequent month, the management of Yummy Noodles Company had planned to raise the price of the pack to Rs. 15,while the weight of the pack was to be fixed at 250 grams. A free gift in the form of a plastic bowl with a spoon was alsoplanned.Two months
before
the launch of the actual production, the marketing department of the company brought outadvertisements regarding the savory noodles. The advertisements were displayed on bill-boards, TV, radio, print media.Schools and colleges were also targeted to rope in students and children to buy the product.Production of the noodles was planned to be started along with the marketing program. The forecast of the number of expected packets that could be sold for the first month was around 75,000, and 1,25,000 for the second month. Theproduction was required to be started
earlier
to meet the target of projected demand as well as to account for the changeoverin the pack-size in the second month.You are appointed as a logistics consultant by the Company. You are required to guide the Company regarding the followinga)The Company is very keen that its product must be well-received in the market. What coordination is required between theproduction, marketing and other departments of the Company? (Note: You are required to
spell-out
the various
departments
(namely, warehousing, production, quality control, packaging, etc.) that are expected to be required in theCompany)
b)
Explain the role of the Logistics Department in the introductory phase.
[Note: This pertains to Logistics Planning and Process]
 
Page 2Prof Parshuram 26606780/26605814
c)Highlight the necessity of information sharing between the various departments
[Note: This relates to productivity increasedue to Logistics Process]
d)As a logistics consultant, you are required to
foresee
the type of difficulties which the company could face during thechangeover. Give suggestions to the Company to tide over these difficulties.e)Critically examine the free gift scheme and marketing strategy adopted by the company
Case Study
No. 3
Food Savories Limited is engaged in the manufacturing of various types of fast food items that are ready-to-eat variety. Ithas been in the business for the past 12 years. It has its factory as well as the processing unit in Navi Mumbai. The rawmaterials required are mainly vegetables, chicken which the company procures from either the local vendors, or from varioussuppliers situated at Nasik, Pune and other districts. The required materials are procured with the help of hired transporters.However, the hired transporters do not care much about the preservation of the goods. Hence, about 20% of the goods arelost due to damage, deterioration, pilferage, etc. Again, the hired transporters are unreliable with regard to their availabilityas well as prompt delivery schedules.The company’s products are quite popular with the customers who are situated in Mumbai, Navi Mumbai, Pune, etc.However, the company stands to
lose
the market due to erratic supply schedules which do not cater
promptly
to thecustomers. The packaging of the products is attractive, but it
does not preserve
the product for a long time. The shelf-life isonly about 5 hours, if the goods are not properly refrigerated. Loss on this account is about 10%.The company has about 10 distribution centres. But there does not seem to be the much
coordination
between these centres.Logistical information system is
not adequate
. Due to this, the company is unable to
expand
its business. In fact, due tocompetition, there is fear that the company may stand to lose its existing clientele. Due to mismanagement, the company isunable to meet increase in the demands during festival seasons and holidays.You are appointed as a logistics consultant. You are required to put forward your suggestions with regard to:1.Setting-up of proper, effective logistical information system to improve coordination
[Note: Discuss about Logistics as anintegrated process, ensuring proper planning]
2.Effective forecasting system to reduce inventory carrying cost, wastages, damages, pilferages
[ Note: Forecasting can be interms of door-to-door surveys, questionnaires, telephonic interviews. For markets/stores that are close-by, think of JIT strategies]
3.Setting-up of effective purchasing and distribution system
[Note: Quality control with regard to purchases is required.Prefer those suppliers who can supply goods in their own transport]
4.Improved system of storage, handling and packaging
[Note: Study warehousing, material handling system and packaging.Write/discus relevant points relating to the question.]
5.Alternative modes of transport to reduce/eliminate wastages
[Note: Study has to be made regarding capital investment inhaving own fleet of specialized trucks and related variable costs versus hiring specialized fleet of trucks. In case of hired trucks, agreement should be made with regard to compensation to be paid by the transport company in case goods aredamaged/pilfered by them
]6.Ways and means to tackle and counter competitors’ strategies
[ Note: Analysis as to why competitors are having a “cuttingedge”. Improvement in the company’s performance vis-à-vis performance in inbound logistics, processing, packaging,storage/warehousing, marketing/sales programmes. Quality and taste of the product may be altered to suit various sectionsof customers. Different sizes of packets to suit customers’ budget]
Case Study
No. 4
Shoppers’ Paradise has a swanky mall at Andheri, Mumbai. They have a complete range of 
who’s who
of shopping items. Itwas shop-in-shop based on international standards. The shop area is nearly 3, 50,000 square feet and about 25,000 customersvisit the mall daily.Fierce competition has driven Shoppers’ Paradise to tie-up with music companies, popular food outlets, etc. This ensures atleast a certain percentage of sales. Again, to ensure that no stock-outs take place, Shoppers’ Paradise has built a warehouse
 
Page 3Prof Parshuram 26606780/26605814
close to its mall. The warehouse has sufficient storage capacity. Based on the consumption patterns, the warehouse isstocked with the required inventory.Shoppers’ Paradise basically targets higher income groups. Therefore, it prefers to use roadways for transport of goods fromthe vendors. Though expensive as compared to railways, roadways have advantages in terms of door-to-door delivery,quicker decisions regarding change in routes or change in delivery schedules, etc.Shoppers’ Paradise physically opens the packs received from the vendors. It sorts out the goods and puts the necessary pricetags on them. The goods are then repacked to be appropriately stacked for final delivery, as and when required.Since no
heavy inventory
has to be transported, mechanized material handling is not used since it would involve heavycapital investment. Pallets and crates are used extensively. Again, when goods are returned by the customers due to defects,Shoppers’ Paradise sends the goods to the warehouse from where the goods are sent back to the concerned vendor. The costof return is borne by the vendors.In case of new arrivals of stock, the sales department of Shoppers’ Paradise puts bill-boards about the new stock early in themorning, before the customers rive. This makes it convenient for the customers to know about the new arrivals.Shoppers’ Paradise is very keen to ensure that the customers get the right product at the right time. At the same time, themanagement of Shoppers’ Paradise desires to reduce the overall cost. You are appointed as a Logistics Consultant. Suggestways to improve the performance of Shoppers’ Paradise.Questions:a) Study and discuss the implications of logistics network designb) Discuss the modes of inventory sourcingc) Analyze the alternative modes of communicationd) Study various in which Shoppers’ Paradise can increase productivity
Case Study
No. 5
(Mumbai Univ. Nov 2001)M/s Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints for households, commercial premises and industrialapplications.a) M/s BPL has embarked on a policy of satisfying every possible customer in respect of shades, delivery and durability.Thus, it went ahead and created twenty-five depots, one in almost every city. The manufacturing base was, however,maintained in Pune. The factory received information in connection with stocks from depots once a week and there was nointercommunication between the depots. Since they were in the competitive market, price was pre-determined, i.e., themanufacturer had no liberty to price the product as per his own choice.b) In their enthusiasm and effort to satisfy their customers, M/s BPL strived to manufacture every possible shade bycombining various primary shades and would await the prospective customer to carry out the purchase. It ensured that theseshades were available at each and every depot even at the cost of transportation incurred in sending goods in less than fulltruck load lots. This certainly provided a very high service level and the customers would get their shades as per theirdesires and thus they were fully satisfied.c) While on one hand M/s BPL had a population of very highly satisfied, they had almost 50% of their total domestic saleslying as finished goods inventory at various depots, on the other hand.d) Industrial paints, though not very customized, the respective industrial customer was quite satisfied. Consequently, theinventory of finished goods was very low in this segment. But, at the same time, realization was also lower due to stiff competition from other industrial paint manufacturers than the domestic market.
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753357753357

where can i find the answers asap plzzz

reply12 / 17 / 2010
panagiotis85

hi there,do you have the answers for your studies?they seem to be very interesting..thanks

reply04 / 29 / 2010
mourlo

hi !! Do you have the answers, some are quite difficult ..

05 / 30 / 2010
speedometer

Hello there! Do you have the answers to this and especially on Case Study 17. It seems impossible to find any info on Speedometers Company. Thanks!

reply05 / 18 / 2009
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