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Question 1 Health Care Sdn. Bhd. is a growing chain of pharmacy with more than 30 years' experience. They currently have almost 100 outlets in Klang Valley, Negeri Sembilan, Melaka, Johor, Sarawak and are still expanding. All the retail outlets are supported by the headquarter team based in Sentul. As of now, Health Care company only has one warehouse which is located at Seri Kembangan, Selangor. Since there is only one warehouse, the freight consolidation strategy has been used to support all 100 outlets in Malaysia. It would increase the shipment holding time prior to dispatch, thereby making it difficult for Health Care company to meet the required lead time that was given by the 100 outlets. In the warehouse, a team of 10 workers are involved in warehouse operations which include receiving, storage, picking consolidation, sorting and shipping and some value-added activities (labelling, repackaging, etc.). Receiving, storage operations and picking operations are usually carried out during the morning period. In the afternoon, while picking operations are still in progress, orders are checked for completeness (including searching for missing items) by 3 teams, then pack and prepare for shipping. The lack of space and the inefficiency of operations were mainly due to the large number of obsolete items and slow-moving stock items which were eating up square foot after square foot with pallets along the aisles preventing pickers from reaching stock positions. Therefore, they are required to spend the largest portion of the warehouse operations time to find the products (10%) and to walk through the entire warehouse to process an order (60%). Source: This is a self-created scenario. Required: (a) Propose solutions to overcome the issue of having longer shipment time prior to dispatch due to freight consolidation strategy used to support all 100 outlets. Support your answers with evidence from the case above. (40 marks)