Case study & Question

Jacob is an operations manager who works for a major paper manufacturer that wants to grow their business and still maintain their strong competitive position. The company has made huge investments over the year to create optimum conditions for its employees, complemented by a progressive set of human resources policies and practices. To enhance supply chain visibility, the plant implemented an integrated distribution service to enable a quicker delivery time to customers as soon as online orders have been placed. 20 MNO2601/001/3/2021 To ensure that the production line has enough production stock for the various tasks, the business uses a stock-control system whereby it waits for stock levels to reach a predetermined level before they reorder at a fixed quantity. Due to poor delivery and insufficient stock levels, Jacob has decided to implement a new system to ensure better stock control. Jacob wants orders to take place every two weeks (when there are only 500 units left in storage) as well as to keep safety stock. Ideally, it is desired that new stock arrives when stock inventory reaches a certain predetermined minimum level. Question 6 The P:D ratio of an operation indicates how long the customer must wait for the service or product. When an operation's services and products are standardised, there is the potential to create them before demand is known. For our case study, which design option is more apt? 1. Design, create and deliver to order. 2. Create and deliver to order. 3.Partially create and deliver to order. 4.Create to stock