PRODUCTION AND OPERATIONS MANAGEMENT:

SARDINES

I. RAW MATERIALS

The raw materials for the production of sardines are:

1. Sardines (Fish)
2. Water
3. Tomato Paste
4. Modified Corn Starch
5. Salt
6. Sugar
7. Flavor Enhancer: MSG, Garlic
8. Stabilizer: Xanthan Gum, Onion
9. Tin Cans
10. Paper Labels

These simple listing of raw materials can be further classified as to function:

Main Ingredient:
● Sardines (Fish)

Sauce:
● Water
● Tomato Paste
● Modified Corn Starch
● Salt
● Sugar
● Flavor Enhancer: MSG, Garlic
● Stabilizer: Xanthan Gum, Onion

Packaging:
● Tin Cans
● Paper Labels
PRODUCTION AND OPERATIONS MANAGEMENT:
SARDINES

II. PROCESS DETERMINATION

PRODUCTION AND OPERATIONS MANAGEMENT:
SARDINES

III. DISTRIBUTION CHAIN

After the sardines are processed and canned, the packaged sardines are
transferred to the warehouse area of the processing unit, where they await
distribution. Here, inventory management systems track the quantity of sardines
available and prepare orders for shipment.
Following this is the transport of the sardines. The company’s trucks
equipped with refrigerated units arrive at the processing unit to collect the canned
sardines for delivery to various retailers. The sardines are then carefully loaded
onto the trucks, taking care to maintain proper temperature control to preserve
their freshness during transit. The canned sardines are distributed directly to
retailers such as supermarkets, grocery stores, and convenience stores.
This distribution network may utilize various modes of transportation,
including trucks and ships, depending on the location. This is especially
observable in the Philippines, where most manufacturing plants are situated in
Luzon, but consumers are spread across the Visayas and Mindanao regions.
Due to this, shipments may require several days to reach their destinations.
Upon arrival at the retailers, the sardines are unloaded and inspected by
store personnel. They are then stocked on shelves or placed in refrigerated
displays, ready for purchase by customers. Retailers may also utilize inventory
management systems to track sales and monitor stock levels, ensuring that they
maintain a steady supply of sardines to meet customer demand.
Then from the retailers, end consumers such as individuals, purchase the
canned sardines. Sardines are a staple food item in countless Filipino
households due to their affordability and nutritional value. Consequently, they are
among the widely mass-produced and distributed products across the nation
every day.
In addition to domestic consumption, certain sardine products may also be
exported to international markets.
PRODUCTION AND OPERATIONS MANAGEMENT:
SARDINES
IV. INVENTORY MANAGEMENT
Item Item Description Cost per Item Stock Reorder Lead Time Supplier
No. (₱) Qty. Level (Days)

1 Raw material for Mega Fishing

Sardine (fish) 30/kg
sardines Corporation

2 Raw material for MSCS PrimeGoods,

Tomato Paste 75/kg
sauce Inc.

3 Raw material for Daesang

Modified Corn Starch 60/kg
sauce Philippines

4 Raw material for Artemis Salt

Salt 28/kg
sauce Corporation

5 Raw material for Daesang

Sugar 50/kg
sauce Philippines

6 Raw material for Daesang

MSG 125/kg
sauce Philippines

7 Raw material for

Garlic 150/kg Mariya Farm
sauce

8 Raw material for SBS Philippines

Xanthan Gum 700/kg
sauce Corporation

9 Raw material for

Onion 140/kg Mariya Farm
sauce

10 Raw material for

Tin Cans 200/meter Hanwha Corp.
packaging

11 Raw material for Mighty Packaging

Paper Labels 50/meter
packaging Phil., Inc.

An inventory tracking sheet allows the company to monitor the availability

of raw materials in real-time. By knowing the quantity of the raw materials on
hand, the company can plan production schedules efficiently, avoiding stock-outs
which can disrupt production and lead to missed opportunities to fulfill customer
orders. Moreover, an inventory tracking sheet facilitates cost control by
minimizing excess inventory and reducing carrying costs through accurate
inventory management. Quality control is also enhanced as it enables traceability
of raw materials, helping to identify and address any quality issues promptly.
The tracking sheet above shows how a sardine company would track its
inventory by listing the items that are used for the production of the canned
sardines with their description. The sheet would also contain a column for the
cost per unit of the items, the supplier, as well as the stock quantity to be able to
keep track of the stocks effectively. The information presented above are fictitious
and are simply examples for presentation purposes. Stock quantity, reorder
levels and lead times for each item of inventory may vary depending on the
actual situation.