OMGT2085 G01 PineApple TeamReport 2013a

7/30/2019 OMGT2085 G01 PineApple TeamReport 2013a

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MANAGING SUPPLY CHAINS IN THE KITCHEN APPLIANCES & UTENSILS

INDUSTRY IN VIETNAM

PANASONIC Practical Team Report

Lecturer: Axel Marrocco

Team: Pipe Apple_Group 1

Nguyen Thanh Lan S3343934

Doan Van Ben - -S3310034

Tran Trong Nha - S3344172

Truong Minh Xuan Thao - S3324484


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Practical Team Report 2013

RMIT International University VietnamBachelor of Commerce Program

Assignment Cover Page

Subject Code: OMGT2085

Subject Name: Introduction to Logistics and Supply Chain

Management

Location & Campus (SGS or HN) where

you study:

RMIT Vietnam SGS

Student name: Nguyen Thanh Lan

Doan Van Ben

Tran Trong NhanTruong Minh Xuan Thao

Student Number: S3343934

S3310034

S3344172

S3324484

Teachers Name: Axel Marrocco

Group Number: Group 1

Assignment due date: 29 April 2013

Date of Submission: 28 April 2013

Number of pages including this one: 24

Word Count: 3.395


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Table of Contents

Supply Chain Overview: .................................................................................................................. 4

1. Customer Service Value:....................................................................................................... 4

2. Key Players ........................................................................................................................... 4

3. Channel Map: ....................................................................................................................... 6

Impacting Logistics Activities .......................................................................................................... 7

1. Warehouse Management: ................................................................................................... 7

2. Transportation Management: ............................................................................................. 9

3. Demand Forecasting: ......................................................................................................... 12

Recommendation:......................................................................................................................... 14

Reference: ..................................................................................................................................... 16

Appendix: ...................................................................................................................................... 19

Appendix 1: illustration of the channel map ............................................................................. 19

Appendix 2: Value chain analysis 1 (Warehouse Management) ............................................. 20

Appendix 3: Value chain analysis 2 (Transportation Management) ........................................ 21

Appendix 4: Value chain analysis 3 (Demand Forecasting)...................................................... 21

Appendix 5: MCDM Analysis: .................................................................................................... 22

Appendix 6: Argument Map: ..................................................................................................... 25


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Supply Chain Overview:

Reliability:

Accentures Global Consumer Research 2011states that only 20% of consumers say theyfeel loyal to their current electronics company and 66% of consumers have switched electronic

providers due largely to what they observe as poor customer service. Moreover, According to

Gunawardane (2004), in term of competitive environment, Reliability is a very important

customer service value for every single company in order to keep current customers, expand the

market as it is to attract new customers and also help to achieve higher level of customers

satisfaction and loyalty as well as building the long term relationship.

Therefore, in order to gain competitive advantage, Panasonic decided to create and deliver thereliability value to their customers through supply chain players. "Reliability" value refers to

the delivery of right product in the right condition, right quantity, at the right cost, right place

and right time to the final customers (Chain Store Age, 2004).

All of Panasonic players in supply chain closely collaborate together and contribute to the value

creation of Reliability

Here, our group will mention about 3 key players in the Supply Chain that appreciably helpPanasonic to offer "Reliability" value to the final customers:

a. Manufacturer:

According to Hollaender, (1999), manufacturer take an important role in a whole supply

chain, it helps the company to offer products that are tailored to customer needs with the best

quality.

Right quality:

Overall, almost the manufacturers have to outsource a number of inputs including labor,

raw material and components to produce the finished. Thus, manufacturer can help

Panasonic to offer the reliability value to final customer by selecting the good and

reliable raw material suppliers over the world in order to product the qualitative products.

1.Customer Service Value:

2.Key Players


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Time Utility:

With the accurate demand forecasting, the manufacturer can produce right amount of

product (not too much or too less), so it can help Panasonic to offer the reliability value

by ensuring product always enough and available for customers.b. Warehouse:

Warehouse is a place that the company can potentially handle, hold and store goods or

services for future distributing these products to downstream supply chain partners or the

company can ship directly from warehouse to final consumers or from firm to wholesalers,

retailers (Warehouse Logistic n.d) and (Stuart 2005).

In order to create reliability customer value for our product, there are some critical roles that

warehouse must meet: Convenient locations also contribute to create reliability customers value. It means that

the ability of the firm to fulfill the customer demand quickly by working closely with our

supply chain partners. Therefore, we have two biggest warehouses in Vietnam which are

located in Hanoi and Ho Chi Minh with better transportation channel to replenishment

our retailers demand throughout country with most easy way.

Primary packaging can help to protect products. Assembling and suitable instruction will

add value to customer by matching customers states and references.

Safety storage (transit packaging) can minimize the damage caused by storing a large

amount of goods and handling it easily in order to add value to customer and minimize

reverse logistic. These roles can add value to warehouse management and create

reliability to customers.

c. 3PL (Transportation): TTC Express Company

According to Materials management and distribution (2004), in a survey of Fortune 500

corporations' chief logistics executives, there are 85% reported that using 3PL had a positive

or significant positive impact on logistics service levels, and 65% said that it had a significant

effect on customer satisfaction.

Panasonic: by outsourcing 3PL (TTC Express Company who has distribution network in

over 64 cities across Vietnam which 10 trucks (10 tons) and 50 trucks (1.5 tons) (Nam,

2009)) for transportation activity from local Warehouse/distributors to local retailers, it


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allows Panasonics distributors (Panasonic Appliances Vietnam ) to deliver frequently to

2,555 electronic outlets in Vietnam (Euromonitor International, 2011). Specifically, TTC

Express Company helps Panasonic to offer Reliability value through:

Time Utility: with effective 3PL, it allows the effective communication and informationsharing immediately to Distributor. As a result, Panasonic Appliances Vietnam can

make adjustment in time and control the delivery time more effectively.

3.Channel Map:

(See Channel Map Description at Appendix 1)


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Impacting Logistics Activities

a. Definition:

Warehouse generally is distribution facility where the company can hold, store and handle goods

or services for future distribution to downstream players in order to satisfy customer need.

Today, distribution facility management takes a really important role in the whole logistic and

supply chain management, because warehouse management can add value to customers and

other logistic activities.

b. Roles of Warehousing:

(Coyle, Langley, Gibson, Novack and Bardi 2008) Storage Internet order fulfillment

Primary packaging on order to protect products, assemble and instruction to match with

customer tastes and references

Transit packaging like pallet to minimize damage of the products and handle easily

Distribution facility provides a value add fulfillment function in the supplychainc. Customer value:

Help managers or firms to keep accurate record of the flow of products like from firm to

downstream players: from manufacturer to retailers and local store, from retailers to final

consumers. Inventory control: this can supervise the company for production plan.

Safety and secure storage space providing(Gunasekaran, Marri and Mencci 1999)

Minimize damage or defect of the products in the process of material handling

Be flexible to deal with uncertainty supply and demand such as special season or holiday

d. Focus value: Be flexible to deal with uncertainty supply and demand

This value can contribute to the company success by avoiding stock out, because for some

special season like christmas and Tet holiday customer demand for a lot of products, otherwise

customers do not really need to buy our products after those seasons. Therefore, this value can

assist managers to schedule their inventory management plan and the quantity they need to

produce in order to ensure that product always available for customers (Coyle, Langley, Gibson,

Novack and Bardi 2008)

e. Problem/Issue:

1.Warehouse Management:


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Cisco Eagle company (Stone 2012) this company has faced similarly problem with our

Panasonic company of picking error in the warehouse system progress at a local level. It is

because there are many products with similar packaging, but different barcode, they store in the

same area. For example, Panasonic Vietnam not only store one product in their warehouse, butthey offer and store various products like microwaves, fridges, air conditioner and hot water

machines. Therefore, there are two main problems lead to picking errors which are wide range of

products available and labor intensive progress.

Firstly, Cisco Eagles warehouse and Panasonics warehouse receives a huge number of finished

products and a large quantity of items with a similar packaging passing every daily day.

Therefore, the picking errors have occurred more frequently in the warehouse (Riccardo,

Riccardo and Marco 2012).

Secondly, too many staff and intensive of papers work can also lead to error makings. It is

because many orders papers usually pass from one to another staff and employees have to keep

record or rewrite the all of the information into their computers before passing to others.

f. Strategy: ASRS

ASRS stands for Automatic Storage and Retrieval System and consists of a variety of

computer controlled methods for automatically placing and retrieving loads from specific storage

locations (Daifuku Webb n.d and Philippe, Jacques and Angel 2012)

How ASRS solves the problem:SRM can move loads on 3 directions: vertical, horizontal in the aisle and later to store the load in

the space storage location.

Automated Storage and Retrieval System can be various in sophistication from relatively simple,

control manually from order picking machines and it operate in storage structure. Hence, the

computer control system will be integrated into manufacturer complexity and distribution

processes. Therefore, Sorting and picking system will be able to workers to communicate with

electronic equipment regarding to the location and quantity of goods to be distributed or placed.

For example, according to Daifuku (n.d) light are lit at particular points on the shelving system

indicating the location of the item to be picked and a number is displayed by providing direction

of the quantity specified on order.

Advantages:

Reduce labor cost


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ASRS can reduce paper work in process and prevent reverse from picking and shipping

wrong items in warehouse logistic.

Tracking where products are stocked

Modeling and managing the logical of physical storage facility (Wikipedia 2009) Disadvantage:

Relatively high costs to install ASRS system and it will cost a lot of money for maintaining this

system.

g. KPI (Key performance indicators to evaluate the effect of ASRS to solve the problem):

Formula:

( )In order to check the performance of working process in the warehouse system, we can take

the number of picking error per 100 shipments in the current month compared with the

number of picking error per 100 shipments in the previous month

According to Albright (2009), Transportation management does not take part in one role, but

rather plays various roles that drive the performance of a whole supply chain. And by

understanding of how transportation management influences all areas of a business, it

allows transportation managers to build up a supply chain that drives customer service value.

Link to the Panasonic case, at the different levels of supply chain (See appendix 3),

transportation offers different customer service value. In this report I just focus on transportation

between local distribution (Panasonic Appliances Vietnam) and local retailers in order to have

to a good and deep insight about at retail transportation.

a) How transportation can create customer service value at the retail level?

Time Utility: According to Surti (2009), retailers usually hold a little amount of inventory so the

on time delivery is very important for the company to satisfy customers. Moreover, according to

2. Transportation Management:

Month


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Euromonitor International (2011), during 2010, there are 2,555 electronic outlets in Vietnam. It

means Panasonic Appliances Vietnam has to transport and deliver frequently to so many

individual retailers around Vietnam. Therefore, with the effective transportation management, it

helps Panasonic Appliances Vietnam to satisfy the customers as well as achieve competitiveadvantages by allows customers to get products immediately when they need in the right

quantity and at the right place.

b) Problems:

Crate and Barrel is a really big house wares and furniture retailer; it has extended the

operations to over 160 stores and more than 7,000 associates serving customers in 29 markets.

Therefore, to complete annual deliveries of 300,000, Crate and Barrel has 80 to 85 delivery

trucks on the road each day. And almost these trucks and delivery are performed by third party

logistics providers.

Problem: because of 3PL based, they are lack of real time visibility and management into the

status of its deliveries.(Crate and Barrel case study)

Link to Panasonic Appliances Vietnam case, with 2,555 electronic retailers in Vietnam

(Euromonitor 2011), it requires the distributor deliver frequently and effectively to so many

individual outlets. Thus, in order to reduce trucks investment cost and also ensure that customers

can get product when they need, Panasonic Appliances Vietnamdecided to work in partnership

with 3PL (third party player logistics).

However, according to Vietnam Supplychain Insight (2012), almost 3PL in Vietnam is lack of

IT software application lead to lack of data sharing between company and 3 PL.

Problems: because of 3PL based and lack of information sharing, Panasonic

Appliances Vietnam could not manage the route, the time of the delivery as well as

the product quality.

c. Logistics strategy: Approved vendor List


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According to Mahmood et al. (2011), approved vendor list is the process of evaluating

potential supplier by quantitative assessment; next the company can list out the number of

vendors that fitting with companys requirements, and then going to select the most suitable one.

How it work:

For Panasonic Appliances Vietnam, they still have to work with 3PL but instead of working with

the 3PL that do not apply transportation software, they can select another 3PL that have

transportation management system (TMS) already.

Selection Process:

Result:

By choosing the 3PL that already have TMS, it is automatically allow EDI (Electronic Data

Interchange) between Panasonic distributors and 3PL Company. Its mean, distributors and 3PL

can share delivery data immediately with each other through computer to computer. To illustrate,

when 3 PL Company type the information about the time when driver starting to deliver on their

computer, Panasonic Appliances Vietnamwill get this information immediately. As the result,

Panasonic AppliancesVietnamcan know where the trucks are in order to make adjustments in

time to manage and ensure that customers can get products on time.

Benefits and costs of strategy:

1. Identify thecompany needs

and requirements

2. Research anddevelop the 3PL

list

3. Evaluate 3 PLcapability and

reliability4. 3PL Selection


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d. KPI (Key Performance Indicator)

As the problem ofPanasonic Appliances Vietnam is could not manage the route and delivery

time, so in order to measure the approved vendor list strategy, we should compare the percentage

of not on time deliveries before and after applying the strategy.

Firstly, we assume that the number of delivery per month is remain stable. And here we have a

formula:

By taking the number of late delivery divide by the total of order per month, we will have the

percentages of order that not delivery on time. And then, we can compare this number with last

month numbers in order to identify the approved vendor list strategy is effective or not.

a) DefinitionAccording to Coyle at el (2009), Demand forecasting is estimation of the amount of specificgoods that will be bought by consumers in the future. As a result, demand forecast will certainlybe utilized in making pricing decisions, capacity needed and a good way to enter the market.

b) Role of demand forecastingAccording to Wisner et al (2012), there are some remarkable roles of Demand Forecasting

Lower inventories Reduced stock outs

Benefit: speedy, efficient, and

accurate means of electronicallyexchanging transportation data,

delivery time and routingbetween distributors and 3PL

company.

Cost: take time andcost for finding,evaluation and

selection of the 3 PLProvider.

3. Demand Forecasting:

(Lee and Lee, 2010) (Beil, 2009)


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Smoother production plans Reduced operating costs Improved customer service

c) Value:

Time utility: According to Smart, C. N. (2002), demand forecast plays an important role inimproving customer service to increase customer satisfaction. Indeed, demand forecasting is

definitely important since the basic operations process, raw materials were delivered from

suppliers to the end customers, takes time. Panasonic cannot only wait for customers demands

and react to it. They definitely need to predict the future demand and make demand planning. As

a result, they can be able to react immediately when customers demand. It means that

Panasonics manufacturer needs to make to stock rather than make to order through planning

before manufacturing and deploying inventories into warehouses to ship to distributors and

retailers. Therefore, when there is a customer order, he/she can get products immediately.

Issue:

One of the significant issue that leads to this forecast error is weak communication and

collaboration among players in a supply chain system to get accurate demands data from

customers that results in bullwhip effect (xuancuong, 2011)

One obvious example is Procter & Gamble Company headquartered in Cincinnati, Ohio, USA. It

is an American multinational consumer goods company focus on selling personal care products.

According to Lee et al (1997), While the executive of the company check the order patterns for

the popular product - Pampers, they discovered that the order swings were magnified from one

end of the supply chain to the other .Similarly in Panasonic Company, upstream players like

manufacturer in the supply chain system need to rely on the orders from the next downstream

resellers to make demand forecasts. Hence, during selling season, order quantities probably vary

that leads to under and over stock.

d) Strategy:

CPFR Model (Collaborative Planning, Forecasting and Replenishment)It include many business processes that contain players in the supply chain system and consumer

.All players together with support from Internet base technology can have a better collaboration

There are 4 significant states in this Model:

Analyzing data collected from previous reports.

Players cooperate together to make a collaborated planning


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Base on the historical data, making a demand planning that will be shared with each other

among players

After that, cooperating together to execute the plan

(Kamalapurkar, D., 2011)

e) The Benefit and Problem of CPFR Model:

According to Wisner et al (2012), CPFR model will significantly recover the forecasting

problems of the company, which will lead to less stock outs and lower inventory cost.

Nevertheless, Bowersox et al (2007) argues that the implementation cost of this model is

expensive, because it required multifaceted tools and systems such as MRP and ERP system

f) KPI (Key Performance Indicators)

Formula:

By taking the number of Forecast Demand in a month divide by the Actual Sale in the same

month, we will have the percentages of forecast error. And then, we can compare this number

with last month numbers in order to identify the CPRF strategy is effective or not.

Recommendation:

After analyzing MCDM (See Appendix 5) and making argument map (See Appendix 6), we

recommend that Panasonic should apply AVL strategy (Approved Vendor List). Following are

the evidences that supporting for our recommendation.

First of all, AVL can help the company to solve the uncontrollable delivery time problem. In

fact, at the retail level, because of 3PL based Panasonic Appliances Vietnamcannot manage the

delivery time due to lacking of information sharing. Here, AVP can help the company to solve

this problem by selecting the 3PL that fit to Panasonic Appliances Vietnams requirement. To

illustrate, by choosing the 3PL that already have TMS, it is automatically allow EDI (Electronic

Data Interchange) between the distributor and 3PL Company. Its mean, distributor and 3PL can

share delivery data immediately with each other through computer to computer. For instance,

when 3 PL Company typing the information about the time of driver starting to deliver on their

Month


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computer, Panasonic Appliances Vietnamwill get this information immediately. As the result,

Panasonic Appliances Vietnam can make adjustment in time in order to ensure that their

customers can get product on time.

At the first time, AVL was previous recommended to solve uncontrollable delivery time

problem, however if AVL is applied in Panasonic supply chain, it can solve under stock and

overstock problems as well. As the problem under demand forecasting errors is lack of

communication and information sharing between distributors/retailers and manufacturer, by

listing and selecting the distributors that has EDI (Electronic Data Interchange) already, the

selling information and demand forecasting information are shared immediately from

distributors/retailers to manufacturer. As a consequent, Panasonic can solve under/overstock

problem due to accurate demand forecasting.

Furthermore, another reason for we to use AVL is because ASRS and CPFR strategies either

more complicated to implement or have less benefits than AVL. Specifically, about ASRS

(Automated Storage and Retrieval System), it is a really effective strategy to solve the picking

error, however it is cost a huge amount of money for install and maintenance of system; and it

also not really feasible for local warehouse (Haslam et al. 2002,). For instance, according to

Jewels (2003), ASRS is a fully automatically system so the numerous of the control software

being required for the system to run effectively such as A graphical user interface (GUI), a

database to accumulate information of transactions and "product mover" (PM). Therefore, it is

very complicated, costly and unsuitable for a local warehouse like Panasonic to be applied

ASRS. In case of CPFR (Collaborative Planning, Forecasting and Replenishment) strategy, it

helps the company to solve only one problem is under tock and overstock, while it is more

expensive and complicated to apply than AVL. The evidence show that the establishment cost of

this model is expensive, because it required complex communication systems and tools such as

MRP and ERP. Besides that, CPFR system is very difficult and complicated to implement due to

requirement of all supply chain member working closely together with effective communication

(Bowersox et al 2007)

Finally, AVL help Panasonic to improve customer service value (Reliability). In fact, with AVL,

Panasonic can solve not on time delivery and under/overstock problems so it allow finished


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goods always available for customer and they can get products when they need. Therefore, it can

satisfy the customer as well as achieve the customer loyalty (as I mention above, loyalty is the

most important factor in electric market). Even though it is take time for researching, evaluating

and selecting the 3PL that has TMS as well as Distributors that has EDI already, AVL brings abig efficiency and benefits to Panasonic.

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Porter, M.E. (1985), Competitive Advantage: Creating and Sustaining Superior

Performance, Free Press, New York, NY.

R. Baroudi, 2010. KPI Mega Library: 17,000 Key Performance Indicators

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picking/.

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Appendix:

Appendix 1: illustration of the channel map

According to Bowersox and Closs (1996, p. 90), channel map can be defined as a

structure of intercompany units and extra company agents and dealers, wholesaler and retailer,

through which a commodity, product, or service is marketed. Moreover, it is limited in a value

chain in terms of organizations upstream and downstream logistics flows (Porter, 1985). From

the information that we researched for our product (Panasonics microwave), inbound logistics

includes 2 players: suppliers and manufacturer. In particular, raw materials (stainless steel, glass)

are purchased from suppliers and shifted to Panasonic Corporations raw materials testing and

warehousing department where raw materials will be put on a quality testing process to make

sure that the sources are reliable and stored here to keep them safe until they are delivered to

Panasonic Corporation factory to go through a manufacturing process to make finished goods..

In addition, Panasonic Vietnam, 3PL Distributors and retailers players in the supply chain

belong to outbound logistics. After being produced, finished goods are shifted to Panasonic

Appliances Vietnam Company in Vietnam by boats in order to be packaged and labeled. The

lead time for this process is probably 14 days. Next, all of products will be transported to 2 main

retailers, distributors in Ho Chi Minh City and Ha Noi by 3PL (TTC Express Company) and the

lead time is 7 days. Here, products are sorted and stored before they are delivered to different

retailers (supermarket, electronic store) with the leading time from 1 days to 10 days (Nguyen

Kim, n.d).REVERSE FLOW:

Sometimes, when the product is damaged or unfit to customers order the damage goods

may deliver from the final consumers back to distributors and manufacturer to fix or recall

defective goods.


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Appendix 2: Value chain analysis 1 (Warehouse Management)

Transport

Purchasing raw materials

Factory in Japan

(working in process inventories )

Transport Unfinished goods

Panasonic Vietnamese

Warehouse (WIP)

(Labeling and add instruction )

Finished goods and ready for sale

Transport

Point of Sale

Value of Warehouse Management

(Coyle, Langley, Gibson, Novack and

Bardi 2008)

* Help managers or firms to keep

accurate record of the inventory in

Panasonic Vietnam warehouse

* Inventory control

* Safety and secure storage space

providing(Gunasekaran, Marri and

Mencci 1999)

* Minimize damage or defect of the

products

* Be flexible to deal with uncertainty

supply and demand

Adds value to firms products

creating time utility for raw

material, industrial goods

and finished goods

Allows firms to use

customer service as a

dynamic value-adding

competitive tool

Products Flow Problem/Issue

Cisco Eagle Company

(Stone 2012)

Problem: Picking errors (Riccardo,

Riccardo and Marco 2012) Brought

about by:

Wide range of items available

Labor intensive process


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Appendix 3: Value chain analysis 2 (Transportation Management)

Appendix 4: Value chain analysis 3 (Demand Forecasting)

Purchasing raw materials

Factory in Japan

(Working in process inventories)

Transport

Transport unfinished goods

Transport

Value of Demand Forecasting

Lower inventories - Reducing cost of

storing and warehousing

Reduced stock outs - Avoiding

decrease in revenue and gain

customer satisfaction

Smoother production plans -

Reducing risks in manufacturing

process and avoid wasting time

Improved customer service-

Improving relationship with

customer and gain customer loyalty

(Wisner et al, 2012)

Adds customer loyalty

through avoiding waiting

time because of inaccurate

demand forecast

Gain customer satisfaction

through making demand

planning to ensure

customers get products

immediately at the time they

demand.

(Smart, C. N. 2002)

Products Flow Problem/Issue

Procter & Gamble Company

Problem: Poor collaboration and

communication among levels of suppchain to get accurate consumption d

(xuancuong89, 2011)

Upstream players (manufacturer) in t

supply chain system have to rely on t

orders from the next downstream

resellers to make forecasts.

Order quantities vary

dramatically => over or under-stock.

(Lee et al. 1997)

Local distributors

Point of Sales


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Appendix 5: MCDM Analysis:

Balance cost and value considerations:

Considerations Criteria Weight Reason

Desire to

Create Value

Picking errors 10% By picking errors, the

company may deliver

wrong product to the

wrong customer.

Cannot control the

delivery time

30% When the company

may not control

delivery time =>

customers cannot get

product when they

need => affect a lot on

reliability value.

Lack of inventory

information sharingamong levels of

supply chain =>

over/under stock

15% Because of stock out,

product is notavailable at the time

customer need.

Concern aboutComplexity of the

implementation

20% At the local and retail

level, there is limited

on knowledge and

55%45%

Desire to

Create Value

Concern about

Difficulties


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Table 2:

Strategies

Picking

Error

Cannot

control the

delivery time

Lack of inventory

information sharing

among levels of supply

chain => over/under

stock

Complexity of

Implementation

Cost of

Implementat

ASRS

8 1 0 3 2

Approved

vendor List1 8 4 6 7

CPFR 1 2 8 2 5

Difficulties ability to implementstrategies

Cost of the

implementation

25% At the local market,

cost is a really big

concern factors for the

company when

deciding to apply the

strategies

Total: 100%

Issues


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2

A rating from 1 (the worst) to 10 (the best) is given to each strategy based on

solving each issue

Pickingerrors

Cannot

controlthe

delivery

time

Lack of inventory

informationsharing among

levels of supply

chain leads to

over/under stock

Complexity

of theimplementati

on

Cost of the

implementation

Rating

(x) Weighand

=

result

10% 30% 15% 20% 25%

SRSAutomated

orage andetrieval

ystem)

8 1 0 3 2

2.3

pproved

endor List

3 8 4 6 7

6.25

PFRCollaborative

anning,

orecasting and

eplenishment)

1 2 8 2 5

3.55

0.8 0.3 0 0.7 0.5

Issues

trategies

0.3 2.4

0.6 1.2 1.75

0.1 0.6 1.2 0.4 1.25


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Appendix 6: Argument Map: