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About the case

This ambient warehouse belongs to an after-sales market retailer, OhSoCheap. They buy grocery products near expiring and best before dates and sell them at heavily discounted prices in their stores located in major suburbs in Melbourne. The warehouse, which can hold around 3000 pallets of stock keeping units (SKUs), provides order fulfilment for their stores. There are around 6000 stock keeping units (SKUs) in the warehouse which consist of various characteristics of products, packaging and order profiles with high and medium turnover.

All SKUs are received in loose cartons and in pallet loads in 20FT containers. Generic pallets are normally received, with half being cross-docked and the other half of the stock are breakbulk and reconsolidated as cross/mixed SKU pallets for deliveries to the stores.

There are three main types of storage in the warehouse item, case/carton, and pallet loads. There are various types of storage systems used in this warehouse which include modular shelves for items or piece SKUs and various types of racking for carton picking and pallet loads. There are two types of materials handling equipment used in this warehouse pallet jacks, and counterbalance forklift trucks. Picker-to-part strategy is practiced, and barcodes are used to capture data.

Case Study Questions

QUESTION ONE - A

There are several errors in the warehouse layout. Identify any four (4) critical errors and explain why you have considered them to critical errors.

QUESTION ONE - B

Assuming you are the warehouses newly appointed warehouse manager, suggest how you will resolve each error identified in the previous question. Explain how each suggestion will resolve or ease the negative impacts on the operations of the warehouse.

QUESTION TWO

The increasing costs of operating the stores have resulted in the owner of OhSoCheap to consider outsourcing the distribution of the products. The owner approaches you for advise about developing a range of value propositions to potential distributors. Discuss the seven (7) types of critical information you would be include in the business proposal to present to the potential intermediaries.

QUESTION THREE

As you have finished attending classes on distribution channels management, you decide to share your knowledge with the owner, especially about omnichannel distribution. Explain to the owner what are the 3 Rs to achieve as well as the three key infrastructures required for omnichannel distribution to succeed.

QUESTION FOUR

If OhSoCheap embarks in global distribution, the business domestic supply chain will become a global supply chain. Explain to the owner, any two major challenges global supply chains will encounter and propose a possible solution to each challenge.