BAJAJ AUTO

Production and Distribution Model

Previous Distribution Model: Pre Produced

• Products could only be purchased from a few outlets.

• Bikes were already handcrafted and in continuous production, even when demand was
low.

• This resulted in an excess of dead stock, which was costly to store.

• This difference resulted in a price increase.

Pros and Cons
• Higher demand was easier to fullfill
• Advantage of available inventory
• Delivery was faster
• The time spent waiting for spare parts
was minimal.
• Improved utilisation of available time
• Production of dead stock
• Maintenance was expensive.
• Warehouses must be purchased or leased.
• Demand elasticity was unaccounted for
• Models that were no longer in production
had to be sold at a loss.
Current Distribution Model: JIT

• Bikes were made to order.

• There will be no additional stock produced.

• The waiting period was longer.

• Lower costs

• Improved management efficiency

• Built according to demand of season

Pros and Cons
• The costs were lower.
• The demand highs and lows were
balanced.
• Company user-friendliness.
• There was no dead stock produced.
• improved space utilization.
• improved fit and finish.
• Long wait times.
• Customer satisfaction is low.
• Spare parts were not available on time.
• Extreme Increase in demand was not met.
• The company's reputation for delivery has
been harmed.
• Customers are receiving outdated models,
resulting in a product recall.