Challenges in the Supply chain and their possible Solutions

Logistical Drivers
Facility Inventory Transportation

• Since the majority of facilities are in the
north or east, lead times for other parts,
which account for 40% of sales, are
typically long.
• This issue can be resolved by building a
facility or moving the UP facility to the
central region.
• Because of the abrupt 400% change in
demand from April to May, there may be a
bullwhip impact.
• To perform optimal manufacturing, a
master production schedule (MPS) might
be used.
• Cross docking concept can be used to
reduce finished good inventory holding
cost.
• Western and Southern regions have high
lead times as compared to others. The
route through West Bengal from Sikkim to
the south is also very challenging. This is
can damage the product as well.
• By establishing a Central Distribution
Center to meet the 40% requirement, this
can be avoided.
• Reverse logistics might be difficult when
dealing with expired items.
• An effective information system can
mitigate this difficulty.

Information Sourcing

• After production, there is a loss of 550 • Intermitted stoppages in PM supply due to

tones, thus digital technologies like ML
algorithms can be applied for optimization.
• The process of transaction between
functional units of the supply chain can be
made transparent and easier by combining
Blockchain technology with VMI (Vendor
Managed Inventory).
quality issues can be addressed by
standardizing parameters of raw material
production or looking for alternate supplier
matching supply chain strategy both in
domestic and international market.
• 3rd party logistics can be employed to
address challenges in transportation.

Cross-Functional Drivers Sandeep Kumar Mandal

2201160
When the Production in Sikkim Plant suspended for 2 weeks:

Production Capacity per day Overall Production

Facilities (in tons) (Monthly)
Sikkim 56 840
Dehradun 10 300
Aligarh 19 570
Total 1710

• There is possibility of lost sales in this scenario one can outsource production keeping in mind cost benefit analysis.

The difference in max demand and supply is 2160 -1710 = 450+ 550 tones (After accounting for production losses)
• The answer to 3rd and 4th question has been attempted in excel sheet.

Microsoft Excel
Worksheet

Sandeep Kumar Mandal

2201160