The Fresh ConnectionA Failing Supply Chain

The Fresh Connection is a fruit juice manufacturing company located in NW Europe. It buys it’s raw materials from all over the world and ships to customers located throughout Europe. It operates as a make to stock company and ships to the customers the next day. The company is currently losing money. Every six months they lose over $150,000 as found on your income statement. This has been going on for some time now but cannot go on much longer. Your job tonight is to collectively make the decisions that will save this company.

The Fresh Connection ships product to three main customers. They are as follows:– Retailer Food & Groceries

• 500 stores• Supply chain leader

– Retailer Land market• 300 stores• Discounter

– Chain of gas stations Dominick’s• 50 stores• Only PET bottles

The Fresh Connection has 3 products in two sizes that it produces and ships. They are as follows:• Two packaging types

– 1L carton– 0.3L PET bottle

• Three flavors– Orange– Orange C-Power– Orange/Mango

• Shelf life of finished products is 20 weeks

Our current promises to the customers are as follows:

Some of the problems the Fresh Connection faces are as follows:• Not meeting service level commitments to customers• At the time of production they do not have 100% component availability to build product• They are obsoleting or throwing out 8% of what they build and stock because product is

sitting on the shelf too long and violates the shelf life promise it makes to customers• They are stocking out of components• They are stocking out of product so they have back orders• They are occasionally overflowing their warehouses (inbound and outbound) and have to

use public warehouse space to stock components and product• They are concerned they are not staffed properly both in the warehouses and in production

• Production has to use overtime to meet production needs yet they only hit the production schedule on time roughly 75% of the time

• Suppliers are late.

Below are the current stock levels in supply chain:

Supply Chain currently utilizes a three week frozen period.

In Operations, we can provide you with the following information.

Mixer Information

Bottler Information

The agreements with their suppliers is as follows:

Additional production and logistics information is as follows:

As a last reminder, the company is in deep trouble and your mission is to turn this company around by making better supply chain decisions