AutoSave Off TOEV202 - Assignment 2021 - Saved to this PC- Search A Msomi, Thamsanqa, (Mr) (s223363367) MT File Home Insert Draw Design Layout References Mailings Review View Help Share Comments CASE STUDY 2 Future Tag When Future Tag was founded in 1999, set out to be a manufacturer of plastic fishing bobbers. Then, in 2000, Future Tag was approached by a local greenhouse owner and was asked if they could produce a line of horticultural labels for plants. At the time, these labels were made of wood. Future Tag adapted their machines to produce these labels and has been manufacturing the plastic "tags" for plants ever since. Over the years, the labels have increased in quality and now feature full-color pictures of the plants, along with their name and planting and care instructions. Many of Future Tag's largest customers are seed companies that sell the seeds to commercial growers. The large seed companies typically place one or two large orders with Future Tag at the beginning of the growing season. The seed companies then sell their seeds and the labels to their customers who grow the plants and sell them to the end consumer. For various reasons, the seed companies do not like ordering tags, but do so because their customers demand labels with their seeds. However, there are several problems with this ordering process. The main issue stems from the fact that the exact quantities of tags that will be needed is difficult to predict due to possible crop failures and the introduction of new items. To avoid a shortage of Page 3 of 5 Focus 13 19096 1754 words English (South Africa) Type here to search 18C J ENG 01:14 2021/10/08 AutoSave Off IHI TOEV202 - Assignment 2021 - Saved to this PC- Search A Msomi, Thamsanqa, (Mr) (s223363367) MT File Home Insert Draw Design Layout References Mailings Review View Help Share Comments from the fact that the exact quantities of tags that will be needed is difficult to predict due to possible crop failures and the introduction of new items. To avoid a shortage of tags, seed companies order and ship a large quantity of tags to their customers. Tags are ordered early to allow for the time needed to incorporate the tags with the seeds. Seed companies usually end up each year with huge numbers of leftover tags. In fact, Future Tag's largest customers often end up with millions of leftover tags. When Future Tag's management became aware of all the unused labels and unhappy customers, they decided they must come up with a better solution for achieving a match between supply and demand of the tags. One possible solution would be to make an initial, fairly large batch, which would be produced and shipped directly to the growers instead of the seed companies, as is now being done. Later, when the grower results became available, a second batch would be produced using information from growers on how many additional tags are needed. The second batch would then be made and shipped to the growers. (See figure for Before and After.) Before After FutureTag sends tags to seed companies Seed companies send plants without tags to growers Page 3 of 5 1754 words English (South Africa) D Focus 180% Type here to search 18C D ENG 01:16 2021/10/08 AutoSave Off IOEV202 - Assignment 2021 - Saved to this PC Search A Msomi, Thamsanqa, (Mr) (s223363367) MT File Home Insert Draw Design Layout References Mailings Review View Share Comments Help om growers on how many additional tags are needed. The second batch would then be made and shipped to the growers. (See figure for Before and After.) Before After FutureTag sends tags to seed companies Seed companies send plants without tags to growers Seed companies send plants and tags to growers Future Tag sends tags to seed Growers Growers receive plants from seed companies and tags from Future Tag HE Growers receive plants and tags from seed companies Future Tag sends additional tags to seed Growers as needed Growers receive additional tags from Future Tag Plants with tags are shipped to retailers H- Plants with tags are shipped to retailers Page 3 of 5 C Focus 13 180% o 1754 words English (South Africa) Type here to search 18C I ENG 01:16 2021/10/08 AutoSave Off TOEV202 - Assignment 2021 - Saved to this PC- Search A Msomi, Thamsanqa, (Mr) (s223363367) MT File Home Insert Draw Mailings Review View Help Share Comments Design Layout References Growers receive plants and tags from seed companies Future Tag sends additional tags to seed Growers as needed Growers receive additional tags from Future Tag Plants with tags are shipped to retailers Plants with tags are shipped to retailers End customer buy plants with tags End customer buy plants with tags Questions: 2.1 Discuss the key benefit of the revised approach, and the reason for the benefit. 2.2 FutureTag has not yet decided to implement this plan. Discuss the pros and cons you think should be considered. Page 3 of 5 1754 words English (South Africa) Focus 13 180% Type here to search i 18C D ENG 01:16 2021/10/08