Write a 700- to 1,050-word paper OR Develop a 7-10 slide presentation (in both c

Question

Write a 700- to 1,050-word paper OR Develop a 7-10 slide presentation (in both cases, your audience is the senior executives) in which you explain your supply chain strategy to include the use of global suppliers. You will also develop a high-level project plan for the your development project,to include project scope and objects, schedule with milestones, risks and mitigation plans. Also be sure to include (but do not focus on just the bullet below, be sure to cover the bolded directions):

Describe the key characteristics and management strategies for your supply chain.

Summarize your sourcing plan and your rationale to include international suppliers.

Explain your project management approach and include:

Project scope and objects

High-level schedule with milestones

Risks and mitigation plans

Format your paper consistent with APA guidelines.

Use at least 2 academic references.

Explanation / Answer

Currently I am working as Head SCM with Compact Lamps Pvt Ltd in Delhi National Capital Region . Compact Lamps Pvt Limited manufactures LED Bulbs /Tube Lights & CFLs. The lighting industry is going through lot of pricing pressures with demand for CFLs declining every day . So through a Competent Supply Chain Strategy we have to make sure that are able roll out newer products at reduced prices , meet out all demands and do not end up with dead inventories & write offs . So the project scope & objective is : Continuous ability to offer newer / better lighter products to the markets at lower prices & meet all demands without any write offs of raw materials as well as finished goods .

Since in India and else where as well requirement & consumption of LED Bulbs / Tube Lights is growing and that of CFL is declining on Demand Planning aspect in Supply Chain Strategy we will follow the following guidelines :

A. In our company we give a 3 months forecast on a rolling basis every month where 1st month is firm and next 2 months are tentative . For LED Bulbs & Tubelights since the demand is growing we will make use of positive alpha of 0.03 (We have studied yearly trends of 2013, 2014 , 2015 , 2016 & 2017 and have seen demand is increasing by 3 % every year . So if demand was 100 in 2013 , it became 103 in 2014 , 106 in 2015 , 109 in 2016 & 112 in 2017 )and derive demand through SES (Simple Exponential Smoothing) for tentative months . For forecasting of demand for first month the demand will be firm based upon the sales orders received for the month.

B. Like wise for CFLs there has been a decline at the rate of 10% every year so here we will make use of negative alpha of -0.10 to derive demands for tentative months through Simple Exponential Smoothing . For forecasting of demand for first month the demand will be firm based upon the sales orders received for the month.

The milestone for demand planning is current month itself that is March 2018.

Now for sourcing of Raw Material Components let us discuss LED Bulbs & CFLs separately .

LED Bulbs/Tube Lights

The 6 major category of items which are procured here are :

1. LEDs (Light Emitting Diodes) 2. MCPCB(Metal Clad Printed Circuit Boards) 3. Driver PCBs (Printed Circuit Boards) 4 Driver Components 5. Housings 6. Inductors / Transformers

1. LEDs : These are cheapest in China and Nation Star is the best global source available whose quality is best and rates are lowest . We will operate on an inventory of 15 days here and will transport these by air as these are light weight . Here if we transport these by sea we will have to carry inventories for 45 days which will not be prudent as inventory carrying cost will be 3 times of airfreight cost . Milestone is immediate .

2. MCPCBs : These are cheapest in China and Mankun is the best global source available whose quality is best and rates are lowest . We will operate on an inventory of 45 days here and will transport these by sea as these are l weighted items . Here if we transport these by air we will be paying quiet heavily on airfreight which will not be prudent as airfreight cost will be 3 times of inventory carrying cost . In this category itself we buy MCPCBs for other products like spot lights , candle lights , downlighters , panels etc . Here requirement is small in numbers than bulbs & tube lights and demand is uncertain. Here it is prudent to buy from local manufacturers as we can buy in small numbers and do not have to carry inventories .Milestone is immediate .

3. Driver PCBs : It is recommended to buy these local as today local suppliers such as Multiline , BPL , India Circuits are as competitive as global suppliers and to add to this there are lot of changes in Drivers from time to time to reduce cost . Milestone is immediate .

4. Driver Components : For these items Chinese/Korean manufacturers such as Jillin for ICs , Mosphets & Transisters , BP Seni for ICs , Tai Ohm for resisters , Sinecon for Electrolytic Capacitors , Samsung for SMD Capaciters , Weidy for MOVs are cheapest and are known for the quality . They also have huge capacities which indian manufacturers do not have . Here since ICs are light weight and just like LEDs it is prudent to transport them by air keeping an inventory of 15 days . For other items it is preferable to transport them by sea keeping an inventory of 45 days .Milestone is immediate .

5. Housings : For these we have inhouse capacities which can cater to 50% of our requirement . For balance 50% we recommend buying alternatively from local as well as global suppliers since local suppliers have a tendency to increase prices abruptly . When we are buying globally we can keep the local prices in check and in same way can keep global prices also in check since we are buying locally.Milestone is immediate .

6. Inductors / Transformers : Here we should develop inhouse capacities for all our requirements as here lot of flexibility is required on account of driver design changes . Milestone is 30.09.2018 . Till then we will be sourcing these locally from local manufacturers as if we include freight cost , inventory carrying cost the local suppliers are cheaper.

CFLs

Here major items are :1. Driver PCBs , 2. Glass , 3. Driver Components & Housings

1. Driver PCBs : It is recommended to buy these local as today local suppliers such as Multiline , BPL , India Circuits are as competitive as global suppliers and to add to this there are lot of changes in Drivers from time to time to reduce cost . Milestone is immediate .

2. Glass : It is recommendable to buy from local CFL manufacturers who have inhouse glass manufacturing such as Crompton Greaves & Surya as other local suppliers will ask for 3 months confirm requirement .Milestone is immediate .

3. Driver Components : For these items Chinese/Korean manufacturers such as Jillin for Transisters , Tai Ohm for resisters , Sinecon for Electrolytic Capacitors , Samsung for SMD Capaciters are cheapest and are known for the quality . They also have huge capacities which indian manufacturers do not have . Here it is recommended to air lift what is required for the month only and not to transport through sea anything as CFL can abruptly stop as well . Milestone is immediate .

4. Housings : To utilize the present inhouse capacity maximum to meet out requirement and to manufacture strictly as per requirement . The left over requirementy can be sourced locally .

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.