OPMT 2275 Sept 2020 Scenarios

Scenario #01

Mike Farnworth is the appointed BC Minister of Public Emergency Control. His ministry
is responsible to ensure the Province of BC is fully prepared for any type of large natural
disasters, such as earthquakes, floods or adverse weather conditions.

Mike just completed a review of the existing operation and was shocked that while many
studies have been done over the years, little actual activity has taken place. BC is clearly
not prepared and Philip has turned to your consulting group to develop and implement a
total plan as quickly as possible.

Details

 Plan must cover ALL areas of BC

 Determine what items must be stocked and where these should be located
 Determine the logistics method on how to get these supplies to local people as
quickly as possible once the disaster has struck
 Must look at immediate need, short term need and long term need
 Plan must cover the following: earthquake, flooding and severe cold/snowy
weather
 Plan must include shelter/housing for people and their pets

Mike has made it clear that cost must be considered when determining levels and
locations of suppliers and it would be infeasible to have supplies located in each and
every town or city in the Province so this fact must be taken into consideration in your
plan.
Scenario #02

BabyFirst! (BF) Design, manufactures and sells a large variety of items for newborns to
toddlers. BF has a large and loyal customer base who trust the quality and robustness of
the products. BF prides itself on listening to its customers and then design innovative
products to meet their needs.

BF has one manufacturing plant in Winnipeg, regional warehouses in Calgary and

Toronto, which serve their geographic markets in both Western and Central/Eastern
Canada. Products are sold from these warehouses to large retailers, small shops and
distributors. BF also sells products on-line direct form the factory.

Recently a design flaw has been discovered with one of their stroller products, the Get
Up and Go Stroller, designed for people with healthy active outdoor lifestyles. A section
of the tubing frame can bend or twist under repeated stress. The stroller has been sold
for over 6 years, and is much loved by its owners. BF has an easy retrofit for the stroller,
a mounting bracket, but the bracket must be applied by the factory or authorized
retailers.

BF has issued a product recall retrofit.

Details:

 BF must manufacture the bracket in their factory

 Customers can return their stroller to BF directly and it will be fixed and returned within
several days. These customers will receive a free gift from BF – An all weather stroller
cover
 BF will also send the bracket to authorized retailers and its geographic warehouses
 Customers can return the stroller to BF if they are unhappy and do not want a
replacement
 BF is acting extremely quickly on this issue so as to maintain its quality reputation, this is
the most important issue to the company right now

BF has never had to deal with a recall retrofit and have turned to your consultancy group
for direction. They have made it clear to you that customer responsiveness and service
will be key over the next tie period as this issue is addressed,

Scenario # 3
Mark Johnston is the Operation Manager for Mountain Safety Supplies. The firm
supplies PPE to several different industries such as construction, transportation, and
medical including hospitals and long term care facilities across British Columbia. The
firm has a central office/warehouse in Burnaby on Eastlake drive and retail locations with
back-end warehouses in most major towns on Vancouver Island and Interior and
Northern BC. These retail stores are replenished from Mountains main warehouse on a
weekly basis due to the fact they are quite small and can only hold 1.5 weeks’ worth of
stock

The retail stores carry items that would be used regularly by businesses:

 3M Masks
 Face shields
 Medical grade gloves, and hand sanitizer
 Industrial cleaners
 Protective fall equipment
 Work boots and coveralls
 And other safety supplies – goggles, ear plugs, gloves

Mountain also carries some larger items like ultraviolet lamps, portable hand washing
stations. These are stocked in the main warehouse and shipped direct whenever
ordered by customers.

Due to rapidly increasing costs Mark is moving the office/warehouse to a newly

purchased building in a business park in Langley within the next three months. The
timing is not good as Mountain is entering its busiest season of the year, but the cost
reduction means the move must take place soon. Mark has contacted your group to help
her develop a warehouse move/transition plan to ensure the move goes smoothly. The
move must take place over only a few days – he is adamant that there can be no
disruption to the flow on replenishment orders to the retail locations nor or direct
shipments to customers.

Mexapop
Juan Azmitia is the CEO of Mexapop an Mexicana soda producer located in Mexico City.
Mexapop was established in 2010 and now holds a large market share in Latin America
for fruity sugary soda pops. With the success in Latin America Juan is working on a
strategic business plan to expand the business to the western coast of the United States
and Canada. Product will be shipped to the new locations and distributed through
networks in the United States and Canada. There are currently 7 SKU’s of the soft drink
with varying demand for each.

Your firm has been hired by Juan and Mexapop to assist in establishing a
Comprehensive warehouse management plan for both new markets. Your firm is tasked
with the following:

 All warehouse requirements for new facilities in San Diego, and Surrey British
Columbia
 Identify supply chain and distribution needs in local areas
 Create facility layout for both facilities
 Identify final mile sub contracted carriers
 Identify retailers to carry product and delivery requirements
 Identify seasonality and how to manage
 all other criteria outlined in assignment 2.

Mexapop has entered this markets previously through 3rd party warehousing and
logistics firms, and does have an forecast of demand for their products justifying the
move to vertically integrate warehousing and distribution functions. It is extremely
important that there is no stock outs at retail locations as there is currently a competitor
that is aggressively entering the market to compete with Mexapop.