CASE STUDY 1

COURSE 1003
Mandeep Kaur 4352389
Dipasha Mulasi 4384162
Priya Sharma 4381546
Priya 4381956
Vishavpreet Singh 4381733

• GROUP E
 What parts of the Supply Chain Involved
• Production: Efficiently convert raw materials into
finished products while maintaining quality standards
and optimizing production processes.
• Demand Planning: Ensure a reliable source of quality
raw materials at competitive prices.
• Transportation :Ensure timely and cost- effective
movement of goods, utilizing various modes of
transportation such as trucks,ships,planes or trains.
• Warehousing/Storage: Store goods in optimal
conditions, manage inventory levels, and facilitate
efficient picking, packing and shipping processes.
 Significance of demand Planning
 Optimization of how resource are
utilized
 Improving the satisfaction of customers
 Making good decision on inventory
management and production planning.
 Significance of Production
• Determiner of products
• Quality
• Availability
• The costs
 What seemed to be the issue
The issues seemed to be originating from the
supplier.
• They included such as :
• Quality issues
• Delayed delivery
• Demand forecasting
• Supply Chain Visibility
• Inventory management
 Actual issue
• The actual issue is with Avion Inc.
• The procurement department gave wrong statement of
volume units that need to be produced monthly.
• The agreed time for material delivery has been changed.
• The marketing department often gives the wrong
quantity of materials needed as they change it at the last
minute.
• Frustrations from Avion Inc. material management
people as they do not respond when Foster’s company
tries to reach out.
 Ease of Changing Suppliers
• Switching suppliers can be extremely complex.
• This because it involves a long process of purchasing new tooling, supplier search,
and staff member visits.
• Production Integration: Integrating a new supplier into existing production
processes and supply chain networks can be complex and may require significant
time and resources.
• It can be very time-consuming to find a supplier who meets all the company needs.
• The company can incur switching costs as operation maybe at risk of being
disrupted and supplier charging more.
• It will take time before a relationship is built for the supplier to now become a
strategic partner and preferred supplier.
 Easy to Switch Suppliers
• Cost Considerations: Transitioning to a new supplier may involve initial
setup costs ,such as retooling machinery or retraining employees, which
can impact the firm's bottom line.
• Supply Chain Disruption Risk : A sudden switch to a new supplier could
disrupt the supply chain ,leading to production delays ,inventory
shortages, or quality control issues.
 Action plan
Concerning Production Issues

• First is analyzing the cause.Here the major cause was

poor demand planning.
• Second is meet with Foster to discuss the issues to get a
clearer picture.
• Third is to come up with short term solutions. The Foster
can decide to subcontract the production to another
company to ensure to keep up with the new demand.
• For long term the Avion Inc can look for supplier
company that is more automated.
 Action Plan
Concerning Demand Planning
• Proper production scheduling. Considering demand often change
• Capacity planning by sharing of up-to-date information
• Managing picks and troughs through proper communication .
• Use modern cloud solutions such as FP&A software to forecast
demand.
• Use of scenario planning.
 References

• Aditi, Kannan, D., Darbari, J. D., & Jha, P. C. (2023). Sustainable supplier
selection model with a trade-off between supplier development and supplier
switching. Annals of Operations Research, 331(1), 351-392.
• Altekar, R. V. (2023). Supply chain management: Concepts and cases. PHI
Learning Pvt. Ltd.
• Wisner, J. D., Tan, K. C., & Leong, K. (2021). Principles of supply chain
management: A balanced approach. South-Western, Cengage Learning.