Question: This is supply chain problem Superior Logistics (SL) is a leading logistics service provider for distributing organic vegetables from local farms to retailers. On every

This is supply chain problem Superior Logistics

This is supply chain problem Superior Logistics

This is supply chain problem

Superior Logistics (SL) is a leading logistics service provider for distributing organic vegetables from local farms to retailers. On every day, retailers forecast their sales and place their orders to their suppliers through SL by email. Upon receiving the orders, the staff at SL's vegetable distribution centre confirms the orders with the retailers by email. Vegetables can be ordered at SL both in small quantities and in full foam boxes. At the end of each business day, SL consolidates the orders of the retailers for each farm and emails the farms about the order size of each type of vegetables to be delivered to the distribution centre next day. The farms confirm the delivery quantities also by email. The next morning, the farms themselves deliver the vegetables to the distribution centre. At the distribution centre the vegetables are unloaded and packed into foam boxes of various retailers. These boxes are loaded into trucks and delivered to the retailers. To make SL's logistics operation greener and more sustainable, the retailers are asked to send the foam boxes back to the distribution centre with the next truck. The delivery from the distribution centre to the retailers and back is outsourced to an external trucking company. Each day, SL requests by email a number of trucks from the external trucking company to transport the boxes with vegetables to the retailers. The trucking company confirms this request by submitting the schedule by email. The lead time between a retailer's order and delivery of the vegetables to the retailer is about 48 hours. SL notices that demand for vegetables is quite stable throughput the year, albeit with a much larger variability during festive and typhoon seasons. SL expects the retailers' total order quantity will double in the coming three years. (b) Suggest key performance measure for SL's supply chain and propose effective ways to improve the performance. (17 marks)

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