Sheng Siong is the third largest chain supermarket in Singapore with over 60 stores island wide. Its
Question:
Sheng Siong is the third largest chain supermarket in Singapore with over 60 stores island wide.
Its retail stores are primarily located in the heartlands of Singapore. They are designed to
provide their customers with both “wet and dry” shopping options. These include a wide
assortment of live, fresh and chilled produce, such as seafood, meat, fruits and vegetables, in
addition to processed, packaged and preserved food products as well as general merchandise
such as toiletries and essential household products. To date, Sheng Siong has over 1,200
products under 18 house brands, ranging from food products to paper goods. Sheng Siong
imports both processed and raw materials globally. Countries include China, Thailand,
Vietnam, Indonesia, Australia, Japan, USA, Brazil and Holland. Products imported are both
food and non-food products.
(a) With the recent challenges in supply chains related to Covid-19 and the related supply
chain disruptions, analyse how Sheng Siong should make changes to its current network
design to adapt to the disruptions such that it can mitigate rising shipping and raw
material costs.
Your discussion should include the following:
• A diagram of recommended distribution network design, including last mile
transport design for Sheng Siong with an explanation of how it will work. Your
recommended network design should show the flow of goods and information
between different stages of Sheng Siong’s supply chain including its customers.
• A discussion on how your recommended network design will impact the various
decisions related to facilities, inventory management, data management and
transportation.
b) Based on the requirements of Sheng Siong, determine how you would conduct demand
forecasting to match supply and demand. You need to discuss:
• The supply and demand variabilities you should be aware of during forecast
planning.
• Products that you should pay particular attention to during forecast planning.