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Training Program: MBA

Subject: Supply Chain Management

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Name and Last name:

Email:

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Important: Final Project Submission Guidelines

Please take a moment to thoroughly read these guidelines to ensure a smooth
submission process and to avoid potential issues. Your attention to these de-
tails is essential.

Download the Exam Document:

· Download the final project document from Moodle.
· You must only use Microsoft Word or LibreOffice
(https://www.libreoffice.org/download/download-libreoffice) for your work.
· Do not alter any non-editable fields.

Writing Your Project:

· Ensure your content is original and solely your work.
· Utilize the tutors available to you for any queries.
· Submit the final version only, as no preliminary reviews will be
conducted.

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 · In case you fail the first delivery you have a second opportunity. If you
fail twice, you will have to pay the corresponding fees in order to
resubmit your work.
Content Requirements:
· Do not insert images of any kind into your document.
· For diagrams or methodologies like a DAFO or others, use text and/or
tables to describe and illustrate.
Formatting Your Document:
· All editable fields on the cover page must be filled.
· The document should not exceed 18 pages, cover page, bibliography,
and appendix not included.
Naming Your File:
· Follow this format:
ddmmyyyy_Subject_YourLastNameandFirstName.doc
· For example: 11052024_SubjectName_ElsaMoore.doc
Uploading Your Project:
· Once completed, upload your document back to Moodle in either .doc
or .docx format.
Important Notes:
· Plagiarism or submission of work not your own is strictly prohibited.
Repeat violations may result in ineligibility to obtain your degree.
· Your ability to follow these instructions is crucial and reflects on your
overall performance. Please prioritize the accuracy of this process.
Submission Checklist:
· Have you downloaded the final project document from Moodle?
· Have you used only Microsoft Word or LibreOffice?
· Is all content original and individually created?
· Is the final version ready for submission?
· Is the file named correctly as per guidelines?
· Have you uploaded the document to Moodle in the correct format?

Take a moment to double-check your work against this checklist before sub-
mitting. This ensures your project meets all the required standards and is set for
a successful evaluation. Good luck!

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Evaluation Guidelines

The final work will be evaluated based on the following criteria:

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· Acquired Knowledge (3 points): To receive the maximum score, the
work must demonstrate an exceptional and complete understanding of
the theoretical concepts relevant to the subject, applying this knowledge
effectively and accurately to the case analysis. The student is expected
to integrate theories, principles, and models studied during the program
in a way that significantly enriches their analysis and argumentation.

· Development of the Subject (3 points): The maximum score will be

awarded when the student performs a coherent and deeply analytical
analysis of the statement, offering clear, well-founded, and critical inter-
pretations of the presented case. The development of the statement is
expected to show an exceptional ability to identify and analyze key is-
sues, using logical reasoning and relevant evidence to construct solid ar-
guments.

· Final Outcome (3 points): To achieve the maximum score in this area,

the presented solution must be comprehensive, correct, and exception-
ally articulated, meeting all the established parameters for the presenta-
tion. The final outcome is expected not only to effectively solve the posed
problem but also to be presented in a manner that demonstrates a deep
understanding and practical application of the acquired knowledge.

· Added Value (0.5 points): The maximum score in added value is

achieved when the student contributes significant elements that enrich
the analysis beyond the basic requirements. This may include original
analyses, novel perspectives, innovative practical applications, or the in-
tegration of theories or models not covered in class. Creativity and the
ability to connect the case with broader concepts or contexts are particu-
larly valued.

· Supplementary Bibliography (0.5 points): To receive the maximum

score in supplementary bibliography, the work must include a selection of
relevant and current sources that are properly cited according to APA
guidelines. These sources must support and significantly expand the
case analysis, demonstrating an effort to go beyond the material pro-
vided in class and find additional information that adds depth and context
to the work.

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BACKGROUND

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CERAMICOSA SA is a Spanish company of which you are logistic director. It is
dedicated to the manufacture of plates, tiles and various ceramic structures for
housing (walls, floors, countertops, etc.). This has its production and distribution
warehouse in La Vall d'Uixó (Castellón).
CERAMICOSA has experienced exponential rise in sales due to new decorative
trends based on the use of ceramics, whose attributes are linked to elegance,
cleanliness and durability. In addition, the company is characterized for making
high quality ceramics, one of the best on the market, with totally original designs
and engravings. All this has caused that the demand of the product increases
very considerably in the last years.
The strategic director of the company has decided that it is time to export these
new decorative trends to various Western European countries, as she thinks
that the taste and fashion in aesthetic concepts are quite similar, thus ensuring
a very good reception. To this end, an agreement has been signed as exclusive
suppliers of Furniturest, a chain of luxury department stores dedicated exclu-
sively to the sale of accessories, furniture and home installations.
The main characteristic of Furniturest, which has salespoints throughout Eu-
rope, is that it supplies the material to its customers in less than 24 hours after
payment. This forces CERAMICOSA to be very clear about the logistic pro-
cesses to incur stock ruptures at times of peak demand, which would imply very
important monetary penalties as a penalty, as the agreement states.
At the moment we will distribute our production to three locations:
· Furniturest Stockhlom
· Furniturest Palermo
· Furniturest Viena
We find that CERAMICOSA enters a completely new export stage and is very
conditioned by a quite restrictive exclusivity contract. For this reason you must,
as logistic director, develop a logistic plan oriented to the internationalization of
our product taking into account all the mentioned particularities.

DEVELOP

1. Focusing in the first place, in the Inventory stage of the logistics process.
· Explain why an exhaustive inventory control is especially important in
your company.
· Propose actions to prevent disruption of the production process resulting
from poor inventory management.

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2. We know that for the correct exploitation of the CERAMICOSA logistics net-
work it is necessary to emphasize the distribution stage.
· What variables must be taken into account for a proper product coordina-
tion? Propose very briefly an action to ensure the existence of these vari-
ables.
· Propose also different actions that ensure good management for the
client and make them, in turn, more competitive.
3. By having delivery timings so tight because of the commitment of Furniturest
with its customers, CERAMICOSA has decided to rent intermediate and/or final
warehouses to quickly supply the demand of our client.
· As a logistics director, do you consider this proposal correct?
· Locate geographically the warehouses taking into account the location of
each physical store (Stockholm, Palermo and Vienna) and also consider-
ing that we should be able to send the goods to any point in their respec-
tive countries: Sweden, Italy and Austria, since Furniturest customers
can make purchases online.
· Propose a route from the central warehouse to the final customer, bear-
ing in mind that this buffer exists. Apply it to the three scenarios/cities.
4. Do you consider it appropriate to apply the Just in Time philosophy in our
new warehouses? Justify your answer.
5. Regarding the choice of Incoterms:
· Which do you consider more appropriate if we want our client to be freed,
as much as possible, from all management and responsibility?
· Imagine that you have implemented a service for Furniturest to collect
the merchandise to our central warehouse, offering a 10% discount on
the recommended sale price. What type of Incoterm will interest you
most in this case?
6. Decides which route planning system is best suited for CERAMICOSA’s ac-
tivity.

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YOUR ANSWERS

1. Inventory Control:
Importance: Accurate inventory control ensures that CERAMICOSA has the
right amount of stock at the right time, preventing overstocking or stockouts.
This is crucial to meet customer demand and maintain a competitive edge in the
market.
Actions: Implementing an advanced inventory management system can help
track stock levels in real-time, allowing for better forecasting and planning. Set-
ting up regular inventory audits and using automated reorder points can further
improve inventory control.
Preventing Disruptions: Poor inventory management can lead to disruptions
in production, delays in order fulfillment, and increased costs. By implementing
effective inventory control measures, CERAMICOSA can prevent these disrup-
tions and ensure smooth operations.

2. Distribution:
Variables for Coordination: Efficient product coordination requires considering
variables such as transportation modes, lead times, order quantities, and stor-
age capacity. These variables must be carefully managed to ensure timely and
cost-effective distribution.
Action: Implementing a centralized distribution system can help coordinate
these variables more effectively. This can involve using a centralized ware-
house for order processing and distribution, and optimizing routes based on
real-time data to reduce transportation costs and delivery times.
Client Management: Implementing a customer relationship management
(CRM) system can help manage client relationships more effectively. Providing
clients with real-time updates on their orders and offering personalized services
can make CERAMICOSA more competitive in the market.

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3. Warehousing:
Rental Proposal: Renting intermediate or final warehouses can provide CE-
RAMICOSA with the flexibility to meet the tight delivery timelines set by Furni-
turest. This can help prevent stockouts and ensure timely delivery to customers.
Geographical Locations: Strategically locating warehouses near major cities
and transportation hubs can reduce transportation costs and improve delivery
times. This can also help CERAMICOSA reach online customers in Sweden,
Italy, and Austria more efficiently.
Routing: Planning efficient routes from the central warehouse to each Furni-
turest location is essential. This involves considering factors such as distance,
traffic patterns, and transportation modes to ensure timely and cost-effective de-
livery.

4. Just in Time Philosophy:

Applicability: Applying the Just in Time (JIT) philosophy can help CERAMI-
COSA reduce inventory holding costs and improve efficiency. JIT ensures that
products are delivered exactly when needed, minimizing the need for excess in-
ventory.
Justification: JIT is particularly suitable for CERAMICOSA's situation, as it can
help meet Furniturest's tight delivery timelines. By implementing JIT practices,
CERAMICOSA can improve its overall logistics efficiency and customer service.

5. Incoterms:
Appropriate Choice: Using "Delivered Duty Paid" (DDP) can free the client
from most management and responsibility, as the seller is responsible for all
costs until the goods are delivered to the final destination. This can provide Fur-
niturest with a hassle-free experience and ensure smooth delivery of products.
Service Implementation: Choosing "Free Carrier" (FCA) for the service offer-
ing a 10% discount on the recommended sale price can be more suitable. This
term allows the buyer to choose and pay for the carrier, giving them more con-
trol over the shipping process.

6. Route Planning System:

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Best Suited System: A route planning system that integrates with CERAMI-
COSA's inventory and distribution systems is ideal. Look for a system that offers
route optimization based on real-time data, such as traffic conditions and deliv-
ery priorities.
Features to Consider: The system should allow for the optimization of delivery
routes to minimize fuel consumption and delivery times. It should also provide
real-time tracking of shipments and integrate with transportation providers for
seamless coordination.
Benefits: Implementing such a system can help CERAMICOSA improve the ef-
ficiency of its delivery operations, reduce transportation costs, and ensure
timely delivery to Furniturest locations.
Example System: An example of a route planning system that could be suit-
able for CERAMICOSA is Route4Me, which offers route optimization, real-time
tracking, and integration with transportation providers.
By choosing the right route planning system, CERAMICOSA can streamline its
delivery operations and improve its overall logistics efficiency.

Bibliography

Chopra, S., & Meindl, P. (2016). Supply chain management: Strategy, plan-
ning, and operation (6th ed.). Pearson Education.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2016). Supply
chain management: A logistics perspective (9th ed.). Cengage Learning.

Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics
and distribution management (5th ed.). Kogan Page Publishers.

Monden, Y. (2011). Toyota production system: An integrated approach to

just-in-time (4th ed.). CRC Press.

International Chamber of Commerce. (2020). Incoterms® 2020. ICC Ser-

vices Publications.

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Berman, B., & Evans, J. R. (2018). Retail management: A strategic ap-
proach (13th ed.). Pearson Education.

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