Case Study Demand/Supply Chain For this section, you will be presented with case study information and a video with additional information. Read the following case study information and watch the video. Using what you have learned about layout and design, the background information provided in the previous section and the case study information provided, be prepared to be able to answer the questions posed below: Background: Cement powder is a primary ingredient in ready mixed concrete. Cement, when mixed with the correct proportions of water, sand, and gravel in a fashion similar to mixing a cake, will eventually dry and harden into concrete. The cement powder is produced by a supplier and stored in silos for us to pick up when needed. We send our powder hauling trucks to pick up the material based on demand as we have limited space for the material at our plants. The cement supplier has their own schedule that does not always match up with the concrete production schedule. This presents a supply/demand issue on some occasions that must be handled appropriately to successfully service the customers. Problem: The cement supplier that supplies the cement for Mobley Concrete Company has decided to close on Friday for the upcoming holiday weekend. Today is Wednesday and we can foresee an issue arising for Friday as our concrete customers are not stopping work for the holidays. We need to make sure we have enough cement to service our customers. Data: Silo Capacity: 100 tons Current cement in inventory: 78 tons Number of powder hauler trucks: 2 Powder truck capacity: 25 tons Cement used per cubic yard of concrete: 500 pounds Anticipated customer demand on Thursday: 320 cubic yards Thursday business complete by 6:30 PM Cement terminal closes at 10:00 PM Anticipated customer demand on Friday: 580 cubic yards Powder haulers need 3 hours travel time to include loading at the plant Powder haulers need 45 minutes to unload at the concrete plant

Questions:

1. Explain the problem you can foresee with the cement inventory versus the demand.

2. If you do foresee a problem, what are some possible solutions to this problem? List all possible solutions you can think of.

3. Choose a solution and explain why you believe it is the best solution.