Assignment Brief: A local bakery has been experiencing a surge in demand for its baked goods. As a result, they are struggling to manage their inventory, bakery operations, and transportation effectively. They need your help to improve their supply chain operations.

Inventory Management:

The bakery has been facing issues with overstocking and stockouts. They need to determine the optimal inventory levels for each of their baked goods to meet customer demand while minimizing holding costs. They estimate that holding inventory for too long costs them approximately $1,500 per month in spoilage and storage fees. They also need to implement a system for tracking inventory levels and replenishing stock when it runs low. The bakery currently has an inventory turnover rate of 4 times per month.

Warehousing:

The bakery has a small storage area where ingredients and baked goods are stored. However, they have been struggling with space constraints and the inefficient layout. They estimate that they only use 60% of their storage space efficiently. They need to optimize their storage space to accommodate more inventory and improve the flow of products in and out of the bakery. They currently have a storage capacity of 400 cubic feet.

Material Handling:

The bakery uses manual labor to move products in and out of its storage area, baking stations, and delivery vehicles, causing delays and inefficiencies. They estimate that the current process is causing them to spend approximately $3,500 monthly on labor costs. They need to implement more efficient material handlings methods, such as automated conveyors or forklifts, to speed up the process and reduce labor costs.

Integrated Systems:

The bakery uses separate systems for inventory management, order processing, shipping, and transportation. They estimate that errors in their current process cost them approximately $200 per day in lost revenue. They need to integrate these systems into a single platform to streamline operations and reduce the risk of errors.

Design Process and Techniques:

To optimize the bakery's storage layout, implement new material handling methods, and improve transportation, the bakery needs to follow a design process that includes analyzing its current operations, identifying areas for improvement, creating a design plan, and implementing the changes. They must also consider safety, ergonomics, and sustainability factors in their design. They estimate that implementing a new design plan would cost approximately $10,000 but would result in significant cost savings and increased revenue over time.

Decision Analysis Methods and Techniques:

The bakery must make data-driven decisions about inventory levels, storage layout, material handling methods, transportation routes, and system integration. They need to use decision analysis methods such as cost-benefit analysis, break-even analysis, and sensitivity analysis to evaluate different options and choose the most effective solutions.

Transport Management:

The bakery needs to optimize its transportation routes to ensure the timely delivery of its products to customers. They estimate they spend $500 monthly on transportation costs but are experiencing delays and errors in their current process. They need to implement a transportation management system to optimize routes, track delivery status, and improve communication with drivers. They estimate that implementing a transportation management system would cost approximately $5,000 but would result in significant cost savings and increased customer satisfaction.

Assignment Task:

1. Research and develop a plan for the bakery to optimize its inventory levels for each baked good to meet customer demand while minimizing holding costs. Provide a cost-benefit analysis for the proposed plan and estimate the potential cost savings for the bakery. (200 words)
2. Develop a layout design for the bakery's storage area that optimizes space usage and improves the flow of products in and out of the bakery. Provide a cost estimate for implementing the new layout design and estimate the potential cost savings for the bakery. (300 words)
3. Evaluate the current material handling methods used by the bakery and propose new, more efficient methods that can help reduce labor costs and improve productivity. Provide a cost-benefit analysis for the proposed methods and estimate the potential cost savings for the bakery. (300 words)
4. Evaluate the bakery's current systems for inventory management, order processing, shipping, and transportation. Propose an integrated system that can streamline operations and reduce the risk of errors. Provide a cost-benefit analysis for the proposed system and estimate the potential cost savings for the bakery. (300 words)
5. Develop a design plan for the bakery that includes analyzing its current operations, identifying areas for improvement, and implementing changes. Consider factors such as safety, ergonomics, and sustainability in your design. Provide a cost estimate for implementing the new design plan and estimate the potential cost savings for the bakery. (300 words)
6. Evaluate the proposed changes for the bakery and choose the most effective solutions using decision analysis methods such as cost-benefit analysis, break-even analysis, and sensitivity analysis. Provide a report that outlines the chosen solutions and the reasoning behind them. (300 words)
7. Develop a transportation management plan for the bakery that optimizes transportation routes, tracks delivery status, and improves communication with drivers. Provide a cost-benefit analysis for the proposed plan and estimate the potential cost savings for the bakery. (300 words)