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SG-44006 Business Operations And Systems: Supply Chain Network

Supply Network Design

Taylor & Tom Ltd. is a market-leading manufacturer based in the UK. The demand forecast in different regions estimated for next year is as follows:

Region

Scotland

Wales

London

South West

Demand Forecast (000)

180

95

175

130


The managers are designing the manufacturing network. Four potential locations are to be considered. In addition, based on the business plans, there are two available capacity options for establishment of the new factories. The capacity of the plant could be 180000, or 250000 units per year.

The costs of producing and shipping a product unit to each of four markets along with the annual fixed costs at four locations are provided as below:


 

Production and transportation cost (£)

Annual fixed cost of 180000

plant (M£)

Annual fixed cost of 250000

plant (M£)

Scotland

Wales

London

South West

Swindon

190

130

160

125

4

     4.40

Birmingham

180

140

145

150

3.5

     3.85

Manchester

150

148

155

163

3.9

     4.29

Glasgow

120

160

180

203

3.1

     3.41


Considering the available marking scheme in your booklet (criteria 1.1-1.2), write a report and answer to the following questions:

  • How much it cost if the management want to open a plant in all four locations? Advise them the capacity of each plant. Is it a good decision?
  • Where should the company establish its plants to minimise the total cost? What is the optimal capacity selected for new plants at each optimal location?
  • Discuss and interpret the results obtained. Conduct a sensitivity analysis to extend your discussion. What other factors should they take into consideration to make a more reliable decision?

Task 1: Supply Chain Optimisation

Supply chain design and/or Aggregate Production Planning are two issues that need to be optimised in SCM. Given a case problem, you are required to identify the appropriate model, deploy an optimisation tools namely Excel Solver and to find the optimal solutions. You need to interpret the results and to discuss the sensitivity analysis. You should also mention the model’s limitations and highlight other factors affecting the decision making.

Task 2: Lean Management and its challenges

Lean management has been defined as, "The practice of using scientific methods to solve business problems in order to create value", by the lean thinking pioneer, author and academic Professor Daniel Jones.

With reference to a particular business or organisational problem:

  • Describe Jones's statement in the context of your chosen business problem
  • Explain and discuss the benefits and challenges, as well as any strengths and weaknesses, of the broader lean management methodology in the context of your chosen organisation
  • Illustrate how the relationship between Quality and Performance Measurement could be enhanced by an effective Lean Management intervention.

The final submission will consist of an individual essay, 2600 words (+/-10%).

Your work must be supported by the relevant academic literature related to this field, as well as any necessary or relevant practice-based literature, to develop a fuller discussion.

Your submissions will be expected to demonstrate the following qualities:

  • Answering the central focus of the assignment question
  • A critical appreciation of relevant literature and its use to support argument, substantiate model(s) and other aspects of the assignment
  • Ability to analyse relevant theoretical concepts in a critical manner, evaluation of material, indication of gaps in the literature
  • Logical flow of ideas and treatment; imaginative approaches; appropriate selection of real world factors related to the model(s) or specific assignment topic
  • Evidence of additional personal research, and the ability to analyse material from a variety of appropriate relevant perspectives
  • Presentation, structure, appropriateness of methodology, breaking into section headings/subheadings, tidiness
  • A strong and well considered conclusion

Task 4: Reflection

Critically reflect on your own learning in this module, evaluating how the theories and concepts influence your role as a leader and manager and exploring the potential impact on your organisation.  As a result, please identify any effects on your personal and professional development, citing actions which you now need to take and any potential barriers.


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