Baba Sdn Bhd manufactures and distributes chemicals at a plant and onsite distribution centre in the northern part of West Malaysia: logistic Assignment, UTAR, Malaysia

University Universiti Tunku Abdul Rahman (UTAR)
Subject logistic

Case Study

Baba Sdn Bhd manufactures and distributes chemicals at a plant and onsite distribution centre in the northern part of West Malaysia.

Baba’s purchasing manager is currently rethinking the firm’s relationship with KJ Sdn Bhd, a major supplier. KJ has frequently delivered late, delivered the wrong order or backordered Baba’s supplies. Historically, Baba has dealt with supply problems by simply changing suppliers.

The purchasing manager thinks that it may be time to consider additional changes. KJ is one of Baba’s main suppliers. KJ holds a large inventory, but some slow-moving items must be ordered from China with up to three months’ lead time. When Baba places an urgent order for these items, KJ must order the items from China. Baba pressures KJ about the slow delivery time, so KJ appears to let Baba down repeatedly. KJ’s management wonders whether the business with Baba is worth keeping. KJ is a major client, but the constant threat of losing their business disrupts KJ’s operations.

Top management may change the customer base to one that focuses on long-term customers and relies less on Baba. The current process works like this. At the beginning of each month, Baba customers estimate their requirements for the next month. Throughout the month they phone their orders to Baba’s marketing department. Representatives from the marketing department relay the forecasts to the logistics department. Baba’s purchasing department then orders from suppliers like KJ. Baba’s customers often place expedited orders, which cannot always be met because the stock is already reserved for other customers.

Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.

Questions:

1. What are Baba’s logistical problems? (12.5 marks)
2. How can Baba improve its logistical operations? (12.5 marks)
3. What should KJ expect from its customers? (12.5 marks)
4. What options are available to KJ in the short-term and the long-term?

Case study

Company History

Rapid Moving Bhd (RMB) is a public transportation operator that was incorporated in early 2010 in Kelana Jaya, Selangor. The mission of the company is to provide a reliable, safe and comfortable transportation service at an affordable price to the general public. To achieve the required service level, RMB set up a maintenance department in the second year of its operation. Unfortunately, the maintenance department is having some difficulty with parts inventory and availability.

The Problem

During a recent informal visit to the workshop, the managing director, Mr Roshan overheard a frustrated staff member complaining to his supervisor. He lamented that he had gone to four different storage areas to collect the
required material but managed to fill only part of the order because some items were out of stock. For some reason, the material management system (MMS) showed sufficient items in stock. The managing director worried about a recent steady escalation in maintenance costs and parts inventory carrying
costs. He requested that the general manager of the maintenance department, Mr Stivan, study these problems and submit a proposal to resolve them. Mr Stivan investigated and identified the following problems:

1. The materials management information system required manual updating. The staff often assumed the information in the system was up to date when requisition vouchers were waiting to be entered. This time lag meant that the system showed inventory as available when it had already been used.

2. Most users withdrew more material than they needed so they could avoid stockouts.

3. Many users set up unofficial mini-warehouses – just in case.

4. Warehouse staff were reluctant to use the computer-based system. The MMS could provide online system information, but resistance from the warehouse staff kept that part of the system from being implemented.

5. No records on material consumption were kept.

6. Users had to submit a material requisition form for items kept in each of four warehouses and had to collect them personally.

7. Seventy per cent of the maintenance costs came from materials.

Questions

1. Prepare a brief report in which you critically examine the inventory issues presented in the case. Recommend improvements for parts inventory management and maintenance cost reductions.

2. At present, the chief supplies officer is in charge of purchasing the warehouse. He reports to the assistant manager of administrative support services. Mr Stivan intends to appoint an integrated logistics manager to form an integrated logistics department under the maintenance division to resolve the problems and improve maintenance productivity. Do you think that Mr Stivan’s proposal will work? Why or why not? Discuss this fully.

Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.

Get Help By Expert

Need instant assignment help Malaysia? Get professional assignment writing services at affordable prices by qualified experts in Any field. our assignment experts are available 24*7 hours to provide you with top answers on management assignments at an effective price.

Answer

Recent Solved Questions

Online Exam & Assignment Writing Services

51770+ Orders Delivered

4.9/5
5 Star Rating

Confidential & Secure Assignment Help For

Group Assignment Help

Online Exam -Test & Quiz

Cheapest Price Quote

Diploma & Certificate Levels

Semester & FYP Papers

Summative & Individual

GBA & Reflective

Last Minute Assistance

Sample Assignment Download

BUSN6120 Managerial Economics Assignment Sample Malaysia
The student examines the application of microeconomic theory as applied to managers' responsibilities within an organization. This course should emphasize economic principles, with a quantitative and qualitative approach for analyzing…
Business
CHM 361 Inorganic Chemistry UITM assignment example Malaysia
CHM 361 Inorganic Chemistry assignment examples from Malaysia. This assignment is about learning inorganic chemistry and there will be examples of recipes and things that can go wrong. You will…
Education

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now

Get Assistance for Assignments, online Exam, and Projects Writing