Supply Chain Optimization Case Study Help
In order to meet demand in the optimal way by considering the supply of 250,000 per day, the demand could be met by performing the gap analysis of the company, which is given below in Table 2 for the overall month of April 2011.
Table 2:
Day | Demand | Supply | Supply Gap | Butter | SMP | |
1 | 286,387 | 232,031 | 36,387 | 18.19 | 1,700 | 998 |
2 | 307,453 | 249,099 | 57,453 | 29 | 2,684 | 1,576 |
3 | 288,095 | 233,415 | 38,095 | 19 | 1,780 | 1,045 |
4 | 267,987 | 217,123 | 17,987 | 9 | 840 | 493 |
5 | 288,652 | 233,866 | 38,652 | 19 | 1,806 | 1,060 |
6 | 327,752 | 265,545 | 77,752 | 39 | 3,633 | 2,133 |
7 | 260,029 | 210,676 | 10,029 | 5 | 469 | 275 |
8 | 278,243 | 225,433 | 28,243 | 14 | 1,320 | 775 |
9 | 299,058 | 242,297 | 49,058 | 25 | 2,292 | 1,346 |
10 | 323,536 | 262,129 | 73,536 | 37 | 3,436 | 2,017 |
11 | 269,299 | 218,186 | 19,299 | 10 | 902 | 529 |
12 | 275,672 | 223,350 | 25,672 | 13 | 1,200 | 704 |
13 | 308,182 | 249,689 | 58,182 | 29 | 2,719 | 1,596 |
14 | 287,419 | 232,867 | 37,419 | 19 | 1,748 | 1,027 |
15 | 307,718 | 249,313 | 57,718 | 29 | 2,697 | 1,583 |
16 | 316,682 | 256,576 | 66,682 | 33 | 3,116 | 1,829 |
17 | 330,245 | 267,565 | 80,245 | 40 | 3,749 | 2,202 |
18 | 335,029 | 271,441 | 85,029 | 43 | 3,973 | 2,333 |
19 | 342,925 | 277,838 | 92,925 | 46 | 4,342 | 2,549 |
20 | 309,399 | 250,675 | 59,399 | 30 | 2,775 | 1,630 |
21 | 272,493 | 220,774 | 22,493 | 11 | 1,051 | 617 |
22 | 298,470 | 241,821 | 48,470 | 24 | 2,265 | 1,330 |
23 | 318,493 | 258,043 | 68,493 | 34 | 3,200 | 1,879 |
24 | 304,744 | 246,904 | 54,744 | 27 | 2,558 | 1,502 |
25 | 285,709 | 231,482 | 35,709 | 18 | 1,669 | 980 |
26 | 308,121 | 249,640 | 58,121 | 29 | 2,716 | 1,595 |
27 | 316,298 | 256,265 | 66,298 | 33 | 3,098 | 1,819 |
28 | 257,257 | 208,430 | 7,257 | 4 | 339 | 199 |
29 | 314,569 | 254,864 | 64,569 | 32 | 3,017 | 1,771 |
30 | 272,352 | 220,660 | 22,352 | 11 | 1,044 | 613 |
Recommendations
After conductinga detailed analysis, it has been concluded that the company should go to procure the SMP and butter in order to meet the demand gap as this method will reduce the per liter cost to 11 INR, which is about half of the cost that the company will have to bearif it chooses to produce in house. The calculations are shown in the Table 3 of the document..................................
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