CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 Introduction
In present day SC is the recognized discipline to shorten cycle time, transforming
purchasing from tactical operation to strategic source, reduce inventories, decrease
logistics costs, and stream line communication process across a total network from initial
suppliers to final consumption and post-sale services. It is a mechanism through diverse
organizations finds the way to form alliance to a new form of internet-oriented consumer
demand (Charles C. poirier and baver, 2002).

Supply chain is now a core business improvement effect form most companies as senior
management directive in that area becoming common place. Supply chain optimization
has emerged as a central objective for an organized effort enhances quality moved
logically to logistics and distribution, and then to total supply chain performance (Charles
C. perior and Michael baver, 2006). A company’s supply chain structure depends on the
maturity of their markets, products, and customer relationship. A start-up group may to
have to begin with loss virtual chain where, there is no formal long term supplier
organization (someerkumar and willian A. krobb, (2005).

In order to achieve an organization’s goals, a good supply chain decision is critical. SC

requires many decisions related with the flow of information, product and funds. There
are phases (levels) of SC decisions: 1st strategic level which involves a long term time
horizon and at this level the firms establish objectives that are consistent with a higher
order mission statement and define strategies to achieve each of those objectives
(mantzer, 1993). 2nd Tactical level in this level the decision that need to be updated
regularly (i.e. monthly, quarterly and yearly the 3rd level is operational level with day to
day short term SC decisions.

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1.2. Statement of problem
There is a close connection between the design and management of supply chain flows
(product, information, and funds) and the success of the SC (Chopra, and peter, 2007).
The study shows that the success and failurity of the company is depend on supply chain
decisions (onlinesc.com).

Tomas, et al. (2010) conducted a research on Risk, uncertainty and supply chain
decisions. The result shows that bad supply chain decision led to crisis, similarly poor
design and manufacturing decision created loss to the company. The companies like Wal-
Mart who is the known world retail company, Dell computer company who is known by
its computer production and others that built their success on superior design, planning
and operation of their supply chain (Chopra, and peter,2007). There are different
problems related with supply chain decisions. Among these, the first one is the problem
which is related with strategy or design, because of low level of skilled man power to
design a good strategy. The strategic decision is critical in order to stay in business
(Johnson, 2007). There is also the problems related with planning which leads the
companies to failurity and this kind of problem occurs due to the problem of
collaboration in the company and across the company. The third problem is related with
operational decisions this also leads the company to failurity because of the strategic and
tactical decisions will become to implementation through operations. At this level there
may care less ness occur and it leads the company to big problem. All the above
problems were observed from wonjishoa sugar factory and this study would conduct to
fill the gap. In this study the following basic research questions would be answered:

1. Is there a well-organized supply chain strategy in wonjishoa sugar factory?

2. Is there a good supply chain planning trend in wonjishoa sugar factory?
3. Is the employees are motivated to accomplish a day to day activities?

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1.3. Objective of the study
1.3.1. General objectives
This study aimed to assess the supply chain decision practices in WSSF

1.3.2. Specific objectives

 To see a well-organized supply chain strategies in the company
 To enhance good supply chain planning trend in the company
 To see motivated employees

1.4. Scope (delimitation)

Assessing a supply chain decision practices in all sugar factories is important, because of
time and cost constraints, plus it is difficult to assess by student compact, the study is
delimited to wonjishoa sugar factory to investigate its supply chain decision practices.

1.5. Significance of the study

This study will contribute the following importance’s to the organization as well as the
readers.

 It would add new information to existing knowledge specially, about SC decision

areas.
 It would contribute to modify or change existing strategies policies, rules and
regulations of concerned bodies.
 It would serve as a mirror that shows the images of the company to itself.

1.6 Profile of focused organization

WSSF found in wonji plain lies downstream of the koka dam, at an altitude of
approximately 1505-1514 meters sea level. Its location is in the central rift valley of
Ethiopia in Awash River basin, some 110km southeast of the capital Addis Ababa, 10 km
south of Adama town in the Oromia regional state. Before the hands of man changing the
land scape, the wonji plain through basically fertile was sparsely populated area due to
the floods of awash and mosquitoes causing malaria. On this very plain a Dutch holding
company HVA was granted a concession of 5000 hectares of land for the building of
sugar estate and Factory. A great amount of pioneering work hand to be done before the

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wonji plain produced the first batch of sugar cane. Dykes, irrigation and drainage canals,
roads and bridges were built and a lot of other reclamation works were executed. As a
result, on the 20th of March 1954 wonji sugar factory was inaugurated and started
producing the first bags of sugar in Ethiopia. Soon after wonji sugar factory started
production, it was realized that in the very near future wonji alone would no longer cope
with the growing sugar estate and factory was first conceived. This project however,
necessitated an additional 1,600 hectares of land, which was then granted by emperor
Haile sellassies I. Built by the same Dutch company, shoa sugar factory which was about
7km from wonji, was inaugurated on the 10th of November 1962. Comparatively small
and yet important was the establishment of a confectionery factory in June 1961, whose
products Desta candy, 10cents retail packets of sugar and cube sugar-helped in boosting
up the seller of sugar. Through the years, since the foundation of wonji sugar factory,
Ethiopia’s sugar consumption has been swift increasing.

Vision

 To create a sustainable and competitive sugar industry.

Mission

 Create an institution that plays a major role in the national political & economic
transformation which brings rapid, sustainable and equitable growth;
 Create a change and result oriented leadership and workforce with a development
mind-set, ethics and skill;
 Satisfy the national sugar demand;
 Support and facilitate cultural and social development around sugar development
areas;
 To bring about technology transfer in sugar development sector;
 Enhance the industry’s competitiveness through intercropping;
 To create institutional competence capable of attaining the strategic goals of the
sugar industry;
 Create compatible social and economic interlink among the public;

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Core Values

 Establish a result-oriented and cost effective attitude and system;

 Sustainable change and competitiveness;
 Establish good governance;
 Virtuous work ethics;
 Cooperate with the people and ensure their benefit.

Goals

 Ensure the national supply of sugar;

 Support the national energy supply through co-generation and use them for key
economic sectors;
 Maximize the contribution of the sector to the national economic growth and
create job opportunities for citizens;
 Hold an elevated export share in the international market;

Objectives

 Establish a well-equipped breeding station;

 Complete the construction of four tissue culture laboratories and green house;
 Enhance the productivity
 Provide knowledge and skill upgrading training for employees at different levels;
 Create job opportunities for citizen through agriculture, factory, house and
irrigation projects

1.7 Limitations of the study

This is conditions that affect the generalizability and utility of report finding and these are
listed as follow:

The research study is focus only in wonjishoa sugar factory supply chain decision
making practices, so that it is not generalizable to other sugar factories.
Due to the unavailability of top officials, the study was not completed with the
schedule of researcher.

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1.8 Operational Definitions
Network;- a connected and interdependent organization mutually and cooperatively
working together to control, manage and improve the flow of materials and information
from supplier to end user.

Upstream; - means against the current and related to the relationships between the
expertise and its suppliers and suppliers’ supplier.

Downstream; - means ‘’with the current and related to the relationship between an
enterprise and customers.

Linkages; - coordination of SC processers, and relationship

Value; - is the amount buyers are willing to pay for what firm provides (porter).

Customer; - the recipient of goods and services that result from the process and activities
of supply chain.

1.9 Organizations of the Paper

This paper mainly divided in to five chapters: The first chapter which is an introductory
part includes; background of the study, statement of the problem, objectives of the study,
scope of the study, significance of the study, profiles of the focused organization,
limitations of the study, operational definitions of different terminologies and
organizations of the study. Chapter two literature review and chapter three research
methodology which contains research design, sources of data, sampling design and
sampling techniques and data analysis and interpretation. Chapter four includes data
analysis and interpretation, the final chapter (chapter five) includes summary of findings,
conclusion and recommendation.

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 CHAPTER TWO

REVIEW OF LITERATURE
Introduction
Now days, supply chain is the recognized discipline to shorten cycle time, transforming
purchasing from a tactical operation to strategic sourcing, reduce inventory inventories,
decrease logistics costs and stream line communication process across a total network
from initial suppliers to final consumption and post-sale services. It is mechanisms
through diverse organizations find the way to form alliance to a new form of internet-
oriented consumer demand (Charlesc. poirer and Baver, 2002).

2.1 Definitions of Supply Chain

There are various definitions offered by many scholars that attempt to describe the SC
concept. As Geneshan and harrisom, (1995), SC is a network of facilities and distribution
options that perform the functions procurement of materials, transformation of these
materials in to intermediate and finished goods and the distribution of these finished
products to customers. According to Min and Mentzer (2004), SC is the management of
information on systems, sourcing and procurement, production scheduling, order
processing, inventory management, warehousing and customer services. They define the
SC as a set of firms involved in the upstream and downstream flows of products,
services, information and or finances (min and mintzer, 2004).As bowers oxetal (2002),
SC is sequential connected organization and activities involving in creating and making a
product available.SC can also viewed as a value chain as much as supplies,
manufacturers, transporter, and other component of SC add value, conversely, if one
looks in the reverse direction at the same activity, SC can be viewed as demand chain. In
other words, the SC concept covers material and information flows from initial suppliers,
channel members to channel members and finally to end users (Bechtel and
jayaram,1997).As Donald, the simplest view of supply chain has a single product moving
through a series of organization’s each of which somehow adds value to the product.
Taking one organization’s point of view, activities in front of it –moving materials in
wards are called upstream; those after the organization moving materials out wards are

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called downstream (Donald, 2001). Keneth and brain; defines SC as the network of
organizations that are involved, through upstream and downstream linkages, in the
different process and activities that produce value in the form of products and services in
the hands of the ultimate customer or consumer (Kennath and Brian ,2003,). According to
William J., 2005, SC is a sequence of organization- their facilities, functions and
activities- that are involved in producing and delivering a product or service. Broadly, SC
is defined by many scholars as the network of facilities and distribution options that
performs a procurement of materials in to intermediate and finished goods to customers
(Michal H, (2006), Robert, (2006) ;…).

Objectives of SC

SC has a lot of objectives some of these are;-

 Improve the organization’s competitive position

 Provide an uninterrupted flow of materials, supplies and service required to
operate the organization
 To keep inventory investment and loss at minimum
 To maximize organization’s profit
 To maintain and improve quality
 To standardize where possible the items bought and the process used to produce
them.
 Purchasing required items and at lowest of ownership
 Achieve harmonies productive internal relationships (Johnson Fearon, 2008)

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 Types of SC

Based on customer supplier characteristics and in relation to virtuality, scope, service,

complexity, products, purpose and value SC can be roughly classified in to four.

2.2.1. Concentrated chains: founds in business such as the automotive industry that
have;

 Few customer but many suppliers

 Customers with demanding of requirement
 A requirement for JIT delivery

2.2.2. Batch manufacturer chains: That has;

 Many customer, and many suppliers

 Complicated relationship webs

2.2.3. Retail and distribution chains: That has;

 Many customer but relatively few suppliers

 Customized methods, such as vendor-managed inventory (VMI)of facilitating
dealings with suppliers

2.2.4. Service chains: that implement the mission statement of organization such as;
hospitals, libraries and banks concerned with the delivery of services, books, information,
and financial services or restaurants and cinemas delivering food and entertainment
(source: Chopra, 2007).

2.3. Flows in SC
Within SC there is a flow of information, products, and funds, through the network
involving a numbers of enterprises that have an involvement in the movement of
materials from the source to the final consumer (Chopra and peter, 2002).

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2.4. Participant in SC
SC is composed of a company and suppliers and it’s the result of complex interactions
within and between companies in relationships over time (ford et al). SC generally
contains the actors such as producers, to distributors, retailers and customers. These is the
group of participants that creates SC. in simple SC, there is the composition of company
and suppliers and customers.

2.4.1. Producers

Producer or manufacturers are organizations that make or produce a product. This

includes companies that are producers of raw materials and companies that are producers
of finished goods. Producers of raw materials are organization are organization that mine
for minerals, drill for oil and gas, and cut timber. It also includes organizations that farm
the land, raise animals, or catch seafood. Producers of finished goods use the raw
materials and subassemblies made by other producers to create their products. Producers
can also create products that are intangible items such, entertainment, software or
designs.

2.4.2. Distributors

Distributers are individuals or companies that take inventory in bulk from producers and
deliver a bundle of related product lines to customers. Distributors are also known as
wholesalers. They typically sell to other businesses and they sell products in larger
quantities than an individual consumer would usually buy. Distributors buffer the
producers from fluctuation in product demand by stocking inventory and doing much of
the sales work to find and service customer. For the customer, distributors fulfill the
“Time and place” function they deliver products when and where the customer wants
them. A distributor is typically an organization that takes ownership of significant
inventories of products that they buy from producers and sell to consumers. In addition to
product promotion and sales, other functions the distributor per forms are inventory
management, ware house operations, and product transportation as well as customer
support and post -sales service. A distributer can also be an organization that only brokers
a product between the producer and the customer and never takes ownership of that

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product. This kind of distributor performs mainly the functions of product promotion and
sales. In both cases, as the needs of customers evolve and the range of variable products
changes, the distributor is the agent that continually tracks customer needs and matches
them with products available.

2.4.3. Retailers

Retailer stock inventory and sell in smaller quantities to the general public. This
organization also closely tracks the preferences and demands of the customer that it sells
to. It advertises to its customers and often uses some combination of price, product
selection, service and convenience as the primary draw to attract customers for the
product it sells. Discount department stores attract customers using price and wide
product selection. Upscale specialty stores attract customers using price and wide product
selection. Upscale specialty stores offer a unique line of product and high levels of
service.

2.4.4. Customers

Customers or consumers are any individuals or organizations that purchases and uses a
product. A customer organization may purchase a production in order to incorporate it
into another product that they in turn sell to other customer. Or a customer may be the
final end user of a product who buys the product in order to consume it.

2.4.5. Service Providers

These are organizations that provide services to producers, distributors, retailers, and
customers. Service providers have developed special expertise and skill that focus on a
particular activity needed by supply chain. Because of this, they are able to perform these
services more effectively and at a better price than produces, distributers, retailers, or
consumers could do on their own. Some common service providers in any supply chain
are providers of transportation services and warehousing services. These are trucking
companies and public warehouse companies and they are known as logistic providers.
Financial service providers deliver services such as making loans, doing credit analysis,
and collecting on past due invoices. Some service providers deliver market research and

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advertising while others provide product design, engineering services, legal services and
management advice. Still other service providers offer information technology and data
collection services.

All these service providers are integrated to greater or lesser degree in to the ongoing
operations of the producers, distributors, retailers, and consumers in the SC. Supply
chains are composed of repeating sets of participates that fall in to one or more of these
categories. Over time the needs of the supply chain as whole remain fairly stable. What
changes is the mix of participant in the SC and roles that each participant plays.

In some supply chains, there are few service providers because the other participants
perform these services on their own. In other SC, very efficient providers of specialized
services have evolved and the other participants outsource work to these service
providers instead it themselves.

2.5. Supply chain structure

Fig 2.1 Simple supply chain

Supplier Company Customer

Fig 2.2 Extended supply chain

Ultimate customer

Ultimate supplier SupplierCompany Customer Ultimate customer

Source ;( Chopra and peter, 2003)

2.6. Supply chain Drivers / SC decision making areas

Each SC has its own unique set of market demands and operating challenges and yet the
issues remain essentially the same in every case. Companies in any SC must make
decisions individually and collectively regarding their action in the following areas;

2.6.1. Production
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According to (Langford, 2007),most manufacturers are compelled to plan the production
of different products during a given time frame production refer to the capacity of a SC to
make and store products .The facilities of production are factories and ware houses. The
fundamental decision that managers face when making production decision is how
resolve the trade-off between responsiveness and efficiency. If factories and ware houses
are built with a lot of excess capacity, they can be very flexible and respond quickly to
wide swings in product demand. Facilities where all or almost all capacity is being used
are not capable of responding easily to fluctuations in demand.

On the other land, capacity costs money and excess capacity is idle capacity not in use
and not generating revenue.

2.6.2. Inventory

According to (Ebert and Adam, 2001), inventory is stored of goods and stock.

Inventory is spread throughout the supply chain and includes everything from raw
material to work in process to finished goods that are held by the manufacturers,
distributors and retailers in supply chain. Again, managers must decide where they want
to position themselves in the trade-off between responsiveness and efficiently. Holding
large amounts of inventory allows a company or an entire SC to be very responsive to
fluctuation in customer demand. However, the creation and storage of inventory is a
cost and to achieve high levels of efficiency, the cost of inventory should be kept as low
as possible (chapra, 2004).

2.6.3Location

Location refers to the geographical setting of supply chain facilities. It also includes the
decisions related to which activities should be performed in each facility. The
responsiveness versus efficiency trade-off here is the decision whether to centralize
activities in fewer locations to gain economies of scale and efficiency, or to decentralize
activities in many locations close to customers and suppliers in order for operation to be
more responsive (William J., 2005).

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When making location decisions, managers need to consider a range of factors that
relate to a given location including the cost of facilities, the cost of labor, skills available
in the work force, infrastructure conditions, taxes and tariffs and proximity to suppliers
and customers. Location decisions tend to be very strategic decisions because they
commit large amounts of money to long –term plans. Location decisions have strong
impacts on the cost and performance characteristics of a supply chain. Once the size,
number, and location of facilities are determined, that also defines the number of possible
paths through which products can flow on the way to the final customer. Location
decisions reflect a company’s basic strategy for building and delivering its products to
market (Chopra, 2004).

2.6.4. Transportation

Transportation refers to the movement of everything from raw material to finished goods
between different facilities in a supply chain (Chopra, 2004). In transportation the trade-
off between responsiveness and efficiency is manifested in the choice of transport mode
there are difference is manifested in the choice of transport mode. There are different
modes of transportation which includes; rail, road, water, air, pipeline and electronics
transport. Fastest mode of transport such as air planes is very responsive but also more
costly. Slower modes such as ship and rail are very cost efficient but not as responsive.
Since transportation costs can be as much as a third of the operating cost of a supply
chain, decisions made her are every important. For instance ship (water ways), rail (rail
way), trucks, pipeline (liquids or gases such as oil and natural gas). Airplanes and
electronic transport (product, such as electric energy, data, and products composed of
data such as music, and text) a cited by Dani (20014).

2.6.5. Information

With good information, people can make effective decisions about what to product and
how much, about where to locate inventory and low best to transport it.

Information is the basis upon which to make decisions regarding the other four SC
drivers. It is the connection between all of the activities and operations in a SC. To the
extent that this connection is a strong one (i.e. the data is accurate, timely and

14
complete),the companies in a SC will each be able to make good decisions for their own
operations. This will also tend to maximize the profitability of the SC as whole. That is
the way that stock markets or other free markets work and SCs have many of the
dynamics as markets (Chopra, 2004).

2.7. Phases or levels of SC decision making

Introduction

Understanding the SC decision context is important in the current dynamic business

environment as it facilitates joint management of sc. Which leads to competitive
advantage (Mentzer, 1993), strives for the best overall system, which adds value (Bechtel
and Jaya ram, 1997), and improves efficiency and effectiveness of SCs for ultimate
customers (Morash and Clinton, 1998). Good decisions supported by closely integrated
systems leads to the improvement of asset efficiency, reduction in transport and operating
costs, lower inventory levels, shorter cycle times and more timely and accurate responses
to problems or opportunities. Such is the frequency and impact of decision made with in
the supply chain and their direct influence on firm performance, that the scholars believe
that in sufficient attention has been given to fully understand the complexities of the
decision making process. SCM relies on real time information flows at a number of
different levels to ensure optimal decision process efficiency and customer satisfaction
(Dr. Mike,mark,and Elena, (2012). A classic example is where the sales staff implements
promotional activities without informing the ware house and production department of
the forthcoming increases in demand (Dr.Mark 2012). Hence, communicating at different
levels need to be made at what level and by whom. Understand this dilemma and
consequence (barriers to overcome)of not communication in a coordinated manner is the
focus of this study .The different study shows that, the probability of success and failurity
of the company is depend on the company’s SC decisions (on line sc.com ). There are
three basic SC decision phases:

2.7.1. Phase one Strategy or design:

At the strategic level the firms establish objectives that are consistent with a higher order
mission statement and define strategies to achieve each of those objectives (mentzer,
1997). These objectives should define cost drivers, drives of differentiation, and the

15
resultant strategic positioning (porter, 1985). The strategic level is characterized by
concepts such as value chain, supply network and extended enterprise (mills and schmitz,
2002). Upstream and downstream activities of the supply network are analyzed as a
whole. High level analysis is done on how the company, products and business process fit
in the overall supply network, compare their supply network analyze future threats and
opportunities, dynamics of power and dependence in the supply network, loss and
development of competences with in the supply network (mills and schmitz,2002).

At this phase the decisions includes:

 How to structure the SC over the next year

 What chain’s configuration will be
 How resources will be allocated and
 What processes each stage will perform

Strategic decisions made by companies also include location and capacities of;-

o Production and ware housing facilities

o The product to be manufactured of stored at various location
o The mode of transportation to be made an available and types of information
system to be utilized

2.7.2. Phase two Tactical decisions or planning:

At the tactical level are decision that need to be up dated regularly (i.e. monthly,
quarterly and yearly)such as purchasing and production decisions, inventory policies
and transportation strategies and customer strategies. The tactical level cover, the
planning of supplies, manufacturing schedules and the forecasting of demand in order
to meet actual demand (Fox, 2002). Some scholars argue that, the tactical and
operational levels are the same (mills and Schmitz, 2002). Yet they should be seen as
separates at this level is characterized by the efforts towards the integration of
business process across firm boundaries. The tactical level covers logistics decisions
and areas such as quality management, the use and integration of modern information
technology in the SC process re-engineering, supplier selection and development,
relationship management, joint product development and new product development.
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 Broadly this phase includes:

o Which markets will be supplied from which location

o The sub-contracting of manufacturing
o The inventory policies to be followed and timing and size of marketing
promotion.

2.7.3. Phase three operational decisions or SC operations:

The operational level deals with day-to-day short term SC decisions. Examples of these
decisions are scheduling, lead time quotations, routing, and truck loading. Plans and
schedules to meet actual demand are executed at the operational level (fox, 2002). The
physical control issues of the daily manufacturing operations such as machining,
dispatch, transfer, maintenance, material handling are deal with at operation level
(Umenda and jones ,2005).

This phase includes;

 The time horizon is here weekly or daily

 During this phase firms allocate production or inventory and individual order.
 Set a date that on order is to be filled
 Generate pick lists at a warehouses
 Allocate an order to particular shipping made and shipment
 Set delivery schedules of trucks and
 Place replenishment orders.

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 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

Introduction

This chapter deals with the research design, sources of data, sampling and sample
technique, data collection procedures and data analysis and interpretation method.

3.1. Research Type

In order to attain the objective of the research, the researcher had used the descriptive
type of study. Because the descriptive study uses to describe the state of affairs as it
exists at present and the aim of the researcher’s is to describe state of facts in supply
chain decision making practices in wonjishoa sugar factory as it exist.

3.2 Sources of Data

To conduct this research paper, the researcher had used both primary and secondary
sources of data.

Primary source of data: is first-hand information collected by researcher. Mainly the

primary source of data that the researcher used was collected through questionnaires.
Primary data helps the researcher to generate clear and more detailed understanding of
the problem at hand.

Secondary sources ofdata: is already collected data by someone else and passed through
statistical process. This provides a good back ground of information about the subjective
understanding of the study. This kind of data sources includes books, annual reports of
the organization, journal, and brochures.

3.3 Target Population and Sample size

The total population of wonjishoa sugar factory is more than 4000 employees and it is
huge number to select as target population. Due to this the researcher prefers to focus on
Logistics and Supply chain management department of the wonjishoa sugar factory as
target population. Because, they can understand better the objective of the study. Based
on this the target population of the study was 87(N=87).

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3.3.1 Sampling Technique and Sample size
To determine the sample size the researcher would prefer a method developed by
J.Carva1ho, 984.

Table 3.1. Sampling size

Sample size
Low Medium High
Population size
15-90 5 13 20
90 – 150 8 20 32
151- 280 13 32 50
281 – 500 20 50 80
501 – 1200 32 80 125
1201 – 3200 50 125 200
Source: J.Carvalho, 1984

According to table 3.1 when number of population is between15-90 is high about 20

sample which is from target population of organization’s were 87. The Sample had been
taken from the target population that is from organization’s Logistics and supply chain
management department, because the number of population is too large, so it is difficult
to use census. Due to this the researcher uses non probability sampling which is
purposive sampling method. The reason why the researcher needed to choose this
technique among other is that because the investigator needs to collect reliable
information from respondent who are experienced & enough knowledge about the supply
chain decisions. Based on this, 20 of the target population were considered as sample
size.

3.4 Data collection Method

The primary data collected through questionnaires designed to the employees were
distributed and collected. The questionnaire contains closed ended questions. The
secondary data was referred from the company’s record, annual report and brochures.

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Data 3.5 Collection Procedures
The research carried out the following procedures:

Adjustment of the statement of problem

Selection of respondent
Formulation of questionnaires
Distribution of the questionnaires
Data collection
Interpret the data
Analyze the collected data
Presentation of the research

3.6 Methods of Data Analysis and Processing

The researcher was used descriptive analysis method and the quantitative data was
explained through descriptive analysis using tabulation and percentages. The analysis
is undertaken in understandable form. This type of analysis makes easy to understand
and interpret the collected data.

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 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

Introduction

This chapter is deals with the data presentation, analysis and interpretation that is
collected through the primary source of data. The primary data has been collected
through questionnaire distributed to the employees of WonjiShoa sugar factory
department of Logistics and supply chain staffs.

4.1 Response Rate

20 questionnaires were distributed and 17 of them were returned properly. The rest 3 of
them were not filled properly so the researcher dropped. The researcher selects 17
respondents. Response rate equal to the number of respond over number of respondents
(17/20). Response rate is equal to 85% so, the researcher 17 respondents considered as
sufficient to analysis the data.

4.2 Analysis of Questionnaire Findings

The sampling method the researcher had been used is non-probability sampling which is
purposive sampling technique. To make the analysis more meaningful and
understandable, the data is analyzed and interpreted by table and percentage.
Table 4.1: Respondents background information
Item Responses Number of Percentage (%)
respondents
1 sex Male 11 64.7%
Female 6 35.3%
Total 17 100
2. age Under 20 0 0
21-30 4 23%
31-40 9 53%
41-50 2 12%
>50 2 12%
Total 17 100
Source: analysis of this study questionnaire, 2015

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Table 4.1 indicate that from the total participants of the study (sample size 17),
11(64.7%) were male and 6(35.3) were female respondents. This shows that in the
research both females’ and males were fairly participated. Also from the total participant
by age under20 (0%), 21-30 (4) respondents (23%), 31-40(9) respondents (53%) 41-50(2)
respondent (12%) > 50(2)respondents, the total is(17) respondents(100%) from that we
understand that almost all age groups were participated in the study.

Table 4.2: Position and work experiences of respondents

Item Responses Number of Percentage (%)
respondents
1. Position Operator/line 4 23.52%
manager
Supervisor 4 23.52%
Manager 2 11.76%
Senior employees 7 41.2%
Total 17 100
2. Work <5 years 2 11.76%
experience 5-10 years 3 17.64%
10-15 year 5 29.41%
16-20 years 4 23.53%
>20 3 17.64%
Total 17 100
Source: analysis of this study questionnaire, 2015

Table 4.2 Item no.1 shows that the postilion of respondents. Based on the above table,
from the total respondent (17), 4(23.52%) respondents were operator / line managers,
4(23.52%) were supervisors, 2(11.76%) were managers and 7(41.2%) respondents were
senior employees. Also based on the table 4.2 Item no.2 shows that the work experiences
of the respondents were analyzed as follow. <5 years, 2 (11.76%), from 5-10 years 3
(17.64%) respondents, from 10-15 years 5(29.41%) respondents, from 16-20 years
4(23.53%) and >20years 3(17.64%) based on the table employees were experienced.

22
Table 4.3: Educational background of respondents
Item Responses Number of Percentage (%)
respondents
Educational level Certificate - -
Diploma 12 71%
Degree 5 29%
Master’s degree -
PhD -
Total 17 100
Source: analysis of this study questionnaire, 2015

Table 4.3 portrays that from the total respondent 12(71%) diploma level employees and
5(29%) degree level employees. Based on the table 4.3 more of the employees were
diploma level (71%) and only (29%) were complete their degree level.

Table 4.4: Company’s strategic plan

Item Responses No of Percentage
respondents (%)
1. Does your 3 year strategic plan - 100%
company 5 years strategic plan 17
have? My company does not have -
any long range strategy
I don’t know -

Total 17 100%
2. Is your Yes 5 29.4%
strategic plan No 6 35.3%
is derived I don’t know 6 35.3%
from
assessment of
internal
organizational
weakness?
Total 17 100
Source: analysis of this study questionnaire, 2015

23
Table 4.4 Item no.1 reflect that the company’s long range strategy and that shows the
company have 5 years strategic plan. All 17(100%) respondents agree that the company
have 5 years strategy. Item no.2 shows the company’s strategic plan is derived from the
assessment of inter-organizational weakness 5(29.4%) respondents response was yes,
6(35.3%) said no and 6(35.3%) respondents were not know. Based on the above table
even if the company have 5 years strategic plan, there were the only 5(25.4%)
respondents know from where it is driven, 6(35.3) respondents were refuse it and 6(35.3)
respondents were not know totally from where it is driven.

Table 4.5: Institutional strategy share able

Item Response No. of respondents Percentage
(%)
Does your institutional strategy is Yes 9 52.94%
shared with functional level? No 4 23.53%
I don’t 4 23.53%
Know
Total 17 100
Source: analysis of this study questionnaire, 2015

Table 4.5 shows that 9(52.94) respondents agree that the company’s strategy is shared
with functional level, 4(23.53%) doesn’t agrees that and 4(23.53%) of respondents
doesn’t know about it. From the table we understand that the company’s strategic plan is
shared with its functional unit.

Table 4.6: Awareness of strategic supply chain decision

Item Responses No. of respondents Percentage (%)

1. Does your Yes 6 35.29%
organization’s have No 4 23.52%
awareness of I don’t know 7 41.2%
supply chain Total 17 100
decisions?
Source: analysis of this study questionnaire, 2015

24
Table 4.6 portray that the awareness about supply chain decisions based on the table
6(35.29%) employees have awareness about the supply chain decisions, 4(23.52%)
employees have no awareness about supply chain decisions and 7(41.2%) respondents
doesn’t know about supply chain decision. From this we understand still majority of the
employees doesn’t have awareness about supply chain decision.

Table 4.7: Supply chain decision consistency

Item Response No. of Percentage
respondents (%)
1. Does you strategic plan of Yes 4 23.52%
supply chain decision is No 6 35.29%
consistent with a higher order I don’t know 7 41.2%
mission statement of the Total 17 100
company?
2. Is your strategic plan considers Yes 8 47.06%
the activities of the supply chain No 4 23.53%
network as whole? I don’t know 5 29.41%
Total 17 100
Source: analysis of this study questionnaire, 2015

Table 4.7 Item no.1 shows that 4(23.52%) respondents agrees that the strategic supply
chain decisions is consistent with a higher order mission statement of the company,
6(35.29%) disagrees that consistency and 7(41.2%) respondents doesn’t have information
about the consistency of supply chain decision. Based on the above information we
understand, the company’s supply chain decisions doesn’t consistent with its mission
statements or the respondents doesn’t have awareness about it. Item no.2 shows that
8(47.06%) respondents agree that the strategic plan considers the activities of the supply
chain network as whole, 4(23.53%) doesn’t agree that and 5(29.41) respondents were
doesn’t know about it. Form this we understand that almost half of the respondents
8(47.06%) agreed, but there are also half of the respondents 9(54.94%) are still not know
it.

25
Table 4.8: Company’s tactical plan
Item Response No. of Percentage (%)
respondent
1. You tactical plan covers
1 year 4 23.53%
1-2years 4 23.53%
2-3 years 9 52.94%
I don’t know -
Total 17 100
2. How your tactical plan Monthly 2 11.76%
is updated? Quarterly 6 35.3%
Yearly 9 52.94%
Total 17 100
Source: analysis of this study questionnaire, 2015

The above table 4.8, Item no.1 portray that 4(23.53%) agrees that the company’s tactical
plan covers 1 year, 4(23.53%) agree that the company’s tactical plan covers 1-2 years and
the majority of respondents (9) (52.94%) agrees that the company’s tactical plan covers
2-3 years. Based on that we can interpret that the majorities responses. Additionally Item
no.2 shows that 2(11.76%) respondents agree that the company’s tactical plan is updated
monthly, 6(35.3%) respondents agrees that quarterly update and 9(52.94%) respondents
agrees that company’s tactical plan updated yearly therefore we conclude that the plan is
updated yearly.

Table 4.9: About what the tactical plan includes:

Item Response No of Percentages

respondent
1. Is your tactical plan includes Yes 8 47.06%
quality management? No 4 23.53%
I don’t know 5 29.41%
Total 17 100
2. Is your company tactical Yes 7 41.2%
decision considers the logistics No 3 17.65%
decisions like integration of I don’t know 7 41.2%
information technology? Total 17 100
Source: analysis of this study questionnaire, 2015

26
Table 4.9, Item no.1 shows that 8(47.06%) of the respondents agreed that the quality
management is included under the company’s tactical plan, 4(23.53%) disagree that the
company’s tactical plan includes quality management and 5(29.41%) were don’t know
about that. Item no.2; 7(41.2%) respondents agrees that the activities like integration of
information technology is included under company’s tactical plan 3 (17.65%)
respondents disagree that and 7(41.2%) respondents don’t know it.

Table 4.10: Company’s inventory policy

Item Response No of Percentages

respondent
1. Is the inventory policies of Yes 6 35.29%
your company are designed No 5 29.41%
based on tactical plan? I don’t know 6 35.29%
Total 17 100
Source: analysis of this study questionnaire, 2015

Table 4.10 shows that 6(35.29%) of respondents agree that the company’s inventory
policy is designed based on company’s tactical plan, 6(35.29%) of the respondents were
not agree on it and 6(35.29%) of the total respondents were not know about it.

Table 4.11: Company’s Operation

Item Response No of Percentages

respondent
1. Does your company have Yes 8 47.06%
operational plan? No 6 35.29%
I don’t know 3 17.65%
Total 17 100
2. If your response is yes for the Yes 5 29.4%
#12, are the employees of the No 6 35.3%
company having awareness I don’t know 6 35.3%
about operational plan?

Total 17 100
Source: analysis of this study questionnaire, 2015

27
Table 4.11, Item no.1 show that 8(47.06%) respondents agree that the company have an
operational plan 6(35.29%) disagree and 3(17.65%) do not know about company’s
operational plan. Based on the table still the majority of the employees do not know
clearly the company’s operational plan. Item no.2 shows that 5(29.41%) have an
awareness about the company’s operational plan 6(35.5%) respondent do not have are
awareness and 6(35.3%) do not know the company’s operational plan. Based on the
above analysis the majority of the company’s employees do not have awareness about
supply chain operations.

Table 4.12: Daily activities of the company

Item Response No of Percentages
respondent (%)
1. Does your operational Yes 7 41.18%
decision consider the daily No 3 17.64%
activities of the company? I don’t know 7 41.18%
Total 17 100
Source: analysis of this study questionnaire, 2015

Table 4.12, Item 1 portray that 7(41.18%) respondents agree that the operational decision
considers the daily activities of the company, 3(17.64%) disagree that and 7(41.18)
respondents do not know that.

Table 4.13: Employee’s motivation

Item Response No of Percentages

respondent
1. Are the company’s employees Yes 6 35.29%
are motivated to accomplish No 6 35.29%
day to day tasks with in I don’t know 5 29.42%
specific time? Total 17 100

Source: analysis of this study questionnaire, 2015

Table 4.13, shows that the 6(35.29%) respondents agree on the motivation of employees
to accomplish day – to- day tasks, 6(35.29% disagree and 5(29.42%) do not know about
it. We conclude that the employees are not motivated to accomplish their tasks.

28
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

Introduction
This chapter deals with summarizing the major findings, conclude the analyzed data and
recommend based on conclusion

5.1 Summary of major findings

Supply chain decisions are important and critical to the success and attainment of
organizational goals. This study sets out to assessing the supply chain decision practices
with special focus on wonjishoa sugar factory. The following basic research questions
were answered in this study:

1. Is there a well-organized strategy in wonjishoa sugar factory?

2. Is there a good planning trend in wonjishoa sugar factory?
3. Is the employees are motivated to accomplish day to day activities?
In order to conduct the study the researcher had been select 17 employees of the
company logistics and supply chain management department from 87 employees.
100% respondents agreed that the company has 5 years strategic plan.
52.94 respondents (almost majority) were said ‘YES’ that the company’s strategic
plan is shared with functional units of the company.
The majority of the respondents 64.72% have not awareness about the strategic
supply chain decision of the organization.
58.82% of respondents were accepts that the company’s operational plan doesn’t
consider the daily activities of the company.
The majority of respondent 52.94% agreed that the company’s planning trend
covers 2-3 year ranges.
52.94% respondents agreed that the company’s tactical supply chain decisions are
up dated yearly manner.
58.85% of respondents agree that the company tactical plan does not consider the
logistics decisions.
64.71% respondents agreed on employees of the company were not motivated to
accomplish day to day activities.

29
Generally, the company has 5 years supply chain strategic plan and its strategic plan is
not derived from its weakness, the company’s trend on supply chain operations(planning)
is based on 2-3 year ranges and the company employees were not motivated in order to
fulfill their tasks appropriately.

30
5.2 Conclusions
Based on the summary of major findings, the researcher draws the following conclusions:

o The company supply chain strategic plan is not derived from the assessment of its
internal organizational weakness.
o Almost the company’s supply chain strategy is shared with its functional units.
o The majority of respondents were not having awareness about supply chain
decision.
o The company’s strategic supply chain decision was not consistent with it’s a
higher order mission statement.
o The company’s strategic supply chain plan does not consider the activities of the
supply chain network as whole.
o The company’s supply chain tactical plan is updated at yearly manner.
o In the company’s supply chain tactical plan, the logistics decisions were not
considered.
o The inventory policy of the company’s is not designed based on the tactical plan.
o The employees’ awareness about the company’s operation is less.
o The company’s employees are not motivated to accomplish day –to day tasks with
in a specific time.

31
5.3 Recommendation
Based on the analysis, major findings and conclusion, the researcher would like to
recommend that the organization could focus on the following issues to solve the
problem related with its supply chain decisions.

 To reduce ambiguity about supply chain decisions, it is advisable to prepare clear

supply chain decision strategy.
 To improve its internal weakness and to resist its external threat, the company
could derive its supply chain decision strategy based on its internal organizational
weakness.
 To keep its team spirit, it is better to cascade its strategy to the functional units.
 To keep its reason that why the company exists, it is advisable to adjust its supply
chain strategy with its higher order mission statement.
 In order to enhance the comprehensiveness of its supply chain, the company
supply chain strategy shall consider the supply chain activities as whole.
 To foster its Logistics performance, it is better to include the Logistics decisions
in its tactical plan.
 To use its inventory effectively, the company should design its inventory policy
based on its tactical plan.
 In order to achieve the company’s goal the employees must have awareness about
the company’s operation.
 The company’s operational supply chain decisions should consider its daily
activities.
 To achieve the company’s objective with in a given time horizon, the company
should motivate its employees.

32
References
Baver, C. C. (2006). supply chain management and e-commerce. India: Inc.

Charles C. poirier and Michael Baver. (2006). Supply chain management and e-
commerce. India: press.

Chopra, s. (2007). supply chain management (3rd ed.). new jersey: pearson education,
Inc.

David N. Burt and Donald W. Dobler. (2003). world class supply chain management.
USA: chicago.

Handfeild, Nichalas Jr. (2006). supply chain redesign. USA: chicago.

Handfeild, Nicholas Jr. (2006). Supply chain redesign. USA.

Kenneth Lysonsad Brain Farrington. (2006). Purchasing and supply chain management
(7th ed.). USA.

Michael, H. (2006). essentials of supply chain management (13th ed.). singapore.

Peter, S. c. (2004). introduction to supply chain (7th ed.).

Stevenson, W. J. (2005).

www.onlineSC.com

33
 AKSUM UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN

MANAGEMENT
Title; Assessment of supply chain decision practice in

Almeda Textile Factory

Questionnaire to be fulfill employees of Almeda Textile Factory

Dear respondents

The purpose of this questionnaire is to collect relevant data to study entitled an

investigation on supply chain decision practice in almeda textile factory (ALTEX).Your
response is very important for the success of the study. So you are kindly requested to
read all question and fill the questionnaire with genuine response. Be sure that your
response will not be used for other purpose.

Directions; 1. You do not need write your name on the questionnaires.

2. Please try to answer all questions in accordance with the instruction

Provided by using blank space.

Thank you for your cooperation in advance!

Part one

Personal information

Please put tick mark ( ) in the box provided for each questions

1. Sex

Male Female

34
2. Age

18-25 26-34 35-50 50&above

3. Year of work experience

1-5 years 6-10 years 11-15 years 16- 20 years 20 and

Above

4. Educational background

Certificate diploma first degree second degree ph degree

5. Your specification

Logistics and supply chain management marketing management

Accounting and finance management other

6. Work position

Purchasing manager Marketing manager

Transportation manager Production manager

Part two

Supply chain Decision practice

1. Does your company use strategic plan for their competitive advantage?

Yes No

2. Is your strategic plan is derived from assessment of internal organization weakness?

Yes No

3. Does your Factory strategy is shared with function level?

Yes No

4. Does your organization’s have awareness of supply chain decisions?

Yes No

35
5. Does your strategic plan of supply chain is consistent with a higher order

Mission statement of the company?

Yes No

6. Is your strategic plan considers the activities of the supply chain network as whole?

Yes No

7. How many years does your tactical plan covers?

1 year 1-2 years 2-3 year

8. When does your tactical plan evaluated?

Monthly quarterly yearly

9. Is your tactical plan includes of quality management?

Yes No

10. Is your company tactical decision considers logistics like integration of information

Technology?

Yes No

11. Is the inventory policies of your company are designed based on tactical plan?

Yes No

12. Does your company have operational plan?

Yes No

13. If your response is yes for the number 12, are the employee of the company having

Awareness about operational plan?

Yes No

14. Does your operational decision consider the daily activities of the company?

Yes No

15. Are the company’s employees are motivated to accomplish day to day

Tasks with in specific time?

36
Yes No

37