• Case Study 9: (Oct. 2006} M/s. computer-tech is one of the reputed Indian companies producing various types of computer printers. Their production plant's situated at Noida in northern India and the products are distributed through their four distribution centers located in every region. The company introduced its popular line of Desk Jet printers first time in India in 2005. Immediately on the launch of this product, they sold more than one lacs units during that year. But the problems came with the boom in sales. Already, the company was running into serious inventory snags, particularly with service to its customers situated in the southern region.. The printers were generally shipped to all the distribution centers and onward to the customers by road only. Unfortunately, that resulted in long lead times, making it tough to meet the shorter delivery time offered by the local sellers mainly from Southern India. The Company also found itself running short of production capacity to meet the quantity requirements of certain large institutional and industrial customers. To add to it, quite often the company was running out of stock for certain fast-moving models and at the same time facing problems of excess inventory of other models. Working out product wise demand from each market was also proving difficult for their manufacturing plant.
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• Questions:
• {1) What are the main problems in the logistical network of M/s. Computer-Tech?
• {2) What solutions would you propose to overcome these problems?