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DEP GARD Case Study Essay example

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When reviewing the Supply Chain design for DEP/GARD, there are various stages which add value, and some which fail to add value. Looking at figure 1. below, you will see the diagram outlining the supply chain value stream enabling DEP to delivery product to GARD. Areas which fail to add value, and have the potential to erode DEP’s ability to remain a valued supplier for GARD include the following: 1. Failure to utilize LEAN manufacturing principles causing DEP to carry excess inventory: Inventory shortages which caused shutdowns leading to DEP to abandon LEAN principals look to be primarily driven by a lack of structured supplier management. Suppliers of key raw materials were selected based solely on price, with DEP neglecting the …show more content…

Assuming a Tuesday and Thursday delivery schedule, and order that is ready to ship late Thursday (possibly missing the fleet truck leaving the warehouse), now will not ship until Tuesday the following week, adding three business days to the total performance cycle to the order. Stages which are value added: 1. Same day movement of produced finished goods to warehouse 2. Utilization of DEP fleet trucks to make deliveries to short distance customers Figure 1. Upon reviewing the primary suppliers of polymer feedstock for DEP, specifically the suppliers awarded with 60% of the volume, I am able to calculate a maximum performance cycle of 25 days to deliver product to GARD. Assuming inventory is NOT available for some reason requiring an order from polymer suppliers, the longest lead time to receive polymer is 9 days from the 60% suppliers. To receive, process, and produce the material for the customer order, you then add 8 days, as this is the longest production cycle time. Orders are sent to the warehouse, prepared for shipping, and another 6 days may elapse before the order is actually shipped. Using the assumption that GARD is within the 200 mile radius, the longest time that delivery may take place based on twice a week deliveries is 2 days. This gives us a total of 25 days. Vice versa, when looking at the minimum performance

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