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Distribution Strategy at Shuzworld - Case Study Example

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The paper analyses the distribution strategy at Shuzworld. It meets controls in availability and demand. In addition, it minimizes the overall cost of shipping at the company. POM QM Transportation module software is employed as the decision analysis tool…
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Distribution Strategy at Shuzworld
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Download file to see previous pages The company uses three operator machines to produce women's shoes. When the machines are set to run similar tasks, they produce shoes at a totally different time. The delays affect the cost as when the shoes take longer to be produced, production will be lower. To increase the reliability of the three machines, the best formula would be Rs as each machine has a reliability of its own feasible with the tool of decision analysis. The formula requires taking each machine’s output and multiplying by 3 getting an overall rate for all three machines combined. Capacity at Shanghai is fulfilled by Warehouse 2 with 1300 units at the cost of $3900. Capacity at Shuzworld H, Warehouse 1 is 300 units, Warehouse 2 is 200 units and Warehouse 3 is 1800. It amounts ton$900, $800 and $3600 respectively. Capacity at Shuzworld F in Warehouse 1 is 2200 units at $4400. Management should organize the process for production into 5 workstations with the required tasks in each workstation for the production of the Rugged Workboot. The layout of the 5 workstations provides 10 minutes of a maximum time cycle or less for every workstation with an overall time of 46 minutes for each cycle. The start of the cycle begins with task A taking 10 minutes, B and C taking 9 minutes, D taking 8 minutes, E, F, G taking 10 minutes each and H taking 9 minutes. Workstation 2 and 4 have multiple processes of production, therefore, the employees need cross-training to perform the tasks for the processes to continue leading to a reduction in the time of processing. It is the most efficient arrangement that provides the greatest savings in cost to the company for Workboots production. It improved workflow by 100% efficiency and 0% delay. The time of performance for each task and requirements of the sequence needs the assembly line balancing tool of analysis for the proper amount of workstations and workflow that is most efficient. ...Download file to see next pagesRead More
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