OSM - OPERATIONS AND SUPPLY CHAIN

MANAGEMENT CLUB

INDUCTION TASK

Submitted by Group – 54
Shashant Vijay
Ashish Raj,
Ragini Yadav,
Himanshu Sharma
1. DEVELOP PROCESS LAYOUT TO CATER THE FUTURE DEMAND, ALSO FIND THE
WORKFORCE REQUIREMENT TO MEET THE DEMAND.

Input Capital, Procurement of Raw Baking & Dressing Refrigeration

Cake Maker Materials
Input Raw materials Work in progress Storage

• Assuming, cakes are made on daily basis and raw materials are
procured on daily basis as per expected order.

• For 1st Month, we’ll have to make 20000/30 cakes daily. Since there Final Packaging &
can be fluctional in demand, we can keep 1% buffer stock in Ready for shipping
refrigeration.
• One person can prepare 4000 cake in a month, thus, on a daily Output
basis we’ll need (X /30) / (4000/30) where X is number of orders per
month
5 makers for fulfilling 1st month order,
9 makers for 2nd month,
15 makers for 3rd month,
23 makers for 4th month,
Raw material, Work in progress Inventory needs to be scaled
every month.

• To save cost of scaling, refrigeration inventory can be outsourced to

nearby cold storage unit and rate of preparation of cake and cake’s
output can be increased.
Shashant Vijay
2. DEVELOP AN EXPANSION PLAN FOR CHULBUL PANDEY BAKERY.
The Expansion will be followed in following steps :
1. Mark the areas from where majority of orders are coming.
2. Analyze the area acquired and mark the periphery.
3. Advertise the product in areas apart from the current acquired market.
4. Open small stalls and distribute the menu to the residents of that area.
5. Give discounts such as 10% off for first 10 customers etc.
6. Increase the delivery men operating in to match with the increased area of
operation.
7. Give incentives to delivery staff on acquisition of new orders apart from the
orders taken at the store.
8. Take frequent feedbacks from the customers and incorporate all those
suggestions in the products.
9. Increase customer satisfaction with high quality products and service

Ashish Raj
3. DEVELOP A STRATEGY TO ENSURE ON TIME DELIVERY TO EACH CUSTOMER.

• Using hyperlocal delivery, cakes can be delivered to

customers in a quick and faster manner
• where 10 minutes of buffer time be provided for delivery
agent to pick up cake from the store.
• Hyperlocal delivery delivers goods directly from a seller
to the customer.
• It involves the operation of a courier agent picking up
products from a seller and then delivering them directly
to the customer’s address.
• It is carried out in a small geographical area, and
deliveries are usually completed within a few hours.

Ragini Yadav
4. DEVELOP A COST BENEFIT ANALYSIS FOR NEXT 2 YEAR CONSIDERING THAT THEIR
TARGET IS TO GET 20% MARKET SHARE WITH IN NEXT 2 YEARS.
Proposed Cost Benefit
Action
Scaling High cost for Decreased
Inventories Refrigeration dependency on
cold storage
Permanent Additional cost Capacity
Employment of as per building of
20% cake makers government employees and
norms increased
reliability of
attendance

Himanshu Sharma has withdrawn from IIM Kashipur

and was unavailable for the task, thus team decided to
discuss and put all our thoughts in this slide.
ASSUMPTIONS

1. Assuming, cakes are made on daily basis

2. Raw materials are procured on daily basis as per expected
order.
3. Availability of cold storage in nearby space
4. Availability of hyperlocal delivery service in city.
REFERENCES

1. https://www.youtube.com/watch?v=Gw3IRT0ylnI&feature=youtu.be

2. https://cedcommerce.com/blog/what-is-a-hyperlocal-delivery-model-and-how-does-it-work/
3. https://en.wikipedia.org/wiki/Cost%E2%80%93benefit_analysis