Case Study

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Answer & Explanation

1) Suggest proper transportation policy to ensure minimum transportation loss


of fruits and Sarbat and reduction in packaging cost.

a) The different suppliers should ensure they handle the fruits in a manner that does
not expose them to getting damaged during transportation to the factory, there should be
a team set to ensure there is consistency in adhering to proper handling of the fruits.

b) During transportation, the shipment of the fruits should be done in suitable


containers and there should be no excess packaging to avoid damaging of the fruits,
there shouldn't be an excess of the determined gross weight.

c) Get a reliable truck company and contract them to aid with the transportation of the
fruits, make sure the truck company is consistent in picking fruits from the procurement
centers and delivering them at the factory.

d) The company should have a minimum packaging during transportation to prevent


the damage that occurs during transit to the distribution centers.

2) Suggest the appropriate distribution method to maintain the quality of Sarbat

Get to know the consumers behavior and each zone and distribute the Sarbat according
to how it is being consumed in the different zones to avoid excess and shortages in the
distribution centers, as in the case of excess the consumption is probably low thus the
Sarbat is kept for a long time and reduces the quality.

3) Develop a demand forecasting technique to take care of seasonality,


reduction in inventory and shortage at some area.

During summer companies come up with many synthetic sarbat and increase
competition, Natural, should ensure that its sarbat remain so natural with the original
taste by ensuring they have new stock in the distribution centers and avoid distributing
excess in order to maintain freshness, during the seasons,.

Inventory can be reduced if distribution is done according to consumers' behavior in the


different zones, this way there is no excess inventory for sarbat that is not being sold out
to consumers.

The issue of shortage can be handled by ensuring that after studying consumer behavior
in the zones, you know what amount to distribute to the zones to avoid shortage of
sarbat.

4) Suggest the use of information technology to substitute maintenance of high


inventory without affecting customer service level.

The use of information technology helps in proper management of inventory as there is


less paper work that can be full of error and duplication and quick to loss information or
even distort.
By using information technology all the data is filled in a system, it is easy to follow
through inventory in and inventory out and it minimizes duplication of data.

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