DM 1 (RESHAM)

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    SUPPY CHAIN MAINGMENT INTEXTELE SECTOR OF PAKISTAN

    PRESENTED BYAbid Rasheed ,Salman IlyasAli Abrar , Nouman Shafi

    Adnan Laquee

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    The major products of Resham textile mills are:

    Cotton yarnOil cakesEdible oil

    Cotton waste

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    A supply chain is a sequence of processes and flows thattake place within and between different stages andcombined to fill a customer need for a product.

    In Resham textile mill we use cyclic view, since the finalproduct is the raw material for other waiving industries.Push strategy is used by the management of the Reshamtextile industries.

    PROCESS VIEWPROCESS VIEW

    (PUSH & PULL)(PUSH & PULL)

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    PROCESS VIEWPROCESS VIEW

    (PUSH & PULL)(PUSH & PULL)

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    INVENTORYINVENTORY

    Since the cotton crop comes once a year sothe inventory used by the Resham textileindustries is the seasonal inventory

    SAFETY STOCKSAFETY STOCK

    Resham textile industry maintains the

    safety stock of 500 bales of cotton

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    S2S /S2OS2S /S2O

    Resham textile industry use supply tostock strategy due to the nature of

    product

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    DRIVERS OF SUPPLY CHAIN

    FacilityInventory

    Pricing

    SourcingTransportationInformation

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    RAW MATERIAL TO FINISHED GOODRAW MATERIAL TO FINISHED GOOD

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    SCOPE OF STRITIGIC FITSCOPE OF STRITIGIC FIT

    INTER COMPANY INTER FUNCTION

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    PRODUCT EXPLANATIONPRODUCT EXPLANATION

    The raw cotton is purchased from the farm and market then it is

    weighted and then it become the property of the company thesupplier get its cheque from the office and then with the help ofhuge suction machines the cotton is sucked and brought to theplant where it pass through saw machine which separate threethings

    Cotton wool

    Cotton seed

    Cotton wasteCotton wool is sucked trough vacuum and seed fell below and

    waste is thrown in the junk pile. Cotton wool is collected in ahydraulic press and compressed to form a cotton bale and then

    sent to warehouse. Whereas the seeds are spread under sun lightto remove the moisture and then sent to oil department forcrushing and then the residue in the form of oil cake is collectedand stored in separate warehouses.

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    LOGISTICS STRATEGYLOGISTICS STRATEGY

    Since Pakistan is a developing country and there are not many major internationalplayers in the textile sector of Pakistan majority of the companies dont havelogistics strategy which is defined. We have seen that the most firms use the costfactor in their any operations due to the nature of the product the simple rule is

    used Buyer own Carriage That means that the any company who wantedto purchase any product like cotton yarn, cotton cake, cotton seed oil must have topay the logistic cost by that means the firm save a huge amount of cash on outbound logistic operations.Not only Resham Textile Mill uses this policy but generally it is being used by allthe textile mills in the region.

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    LOCATIONLOCATION

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    FORECASTINGFORECASTING

    Resham Textile mills is implementing the time series method of thedemand forecasting. Time series forecasting method use the historicaldemand to make a forecast. They are based on the assumption thatpast demand history is a good indicator of Future demand. Since thecotton crop is a major contributor of the countrys economy and mostof the farmers of interior Sindh and South Punjab grow cotton as it isa most profitable crop of the county so many textile mills and theGovernment itself use time series method of forecasting the futuredemand.

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    AGGREGATE STRATEGIESAGGREGATE STRATEGIES

    There are three major strategies which are mostlyimplemented by the organizations are as follows:Chase strategy using capacity as the lever

    Time flexibility from workforce or capacity strategy

    Level strategy using inventory as the lever

    Resham Textile Mill use Chase strategy- using capacity as thelever it results in low level of inventory in the supply chain andhigh level of change in capacity and workforce. It is used dueto the very high cost of carrying inventory and low cost to

    change level of machine and labor capacity.

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    ORDER REQUESTING CYCLEORDER REQUESTING CYCLE

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    QUESTION AND ANSWERQUESTION AND ANSWER