The Hog Problem Case Study: Integrated Logistics Essay

1287 WordsMar 16, 20146 Pages
The Hog Problem: Integrated Logistics Executive Summary The hog slaughtering plant located in Brendon, Manitoba has the capacity to slaughter 2.5 million hogs per year, around 50,000 per week and 10,000 per day. Hogs arrive at the slaughter plant from all over Manitoba and certain parts of Saskatchewan via truck. Every farm is located within a different distance from the slaughter facility and delivery lead times vary from as low as half an hour to as high as three and a half hours. Farms vary in size, which impacts the lot sizes for each respective farm. This variation in size subsequently affects the loading/unloading time span, which vary from one and half hour to four and half hours. The number of farms…show more content…
These waiting times severely delay trucks and thus increase the cost of transportation and extend the lead times. Moreover, the trucks inefficient utilization have negative affects on the fixed cost of owned vehicles. Dependency on Farmers Delivery Nature: Tactical Timing: Short Term Approximately 25% of the shipments to the plant arrive in farmer-owned trucks. These shipments vary in size from 50 to 200 hogs. The farmer’s scheduled delivery affects the overall hogs supply, and the plant is heavily dependent on the farmers schedule accuracy. Lead Time Fluctuation Nature: Tactical Timing: Short Term Lead time varies significantly, which affects the inventory cycle. The plant has to set a safety stock that will protect the production against stock outs, vehicle breakdowns, weather related delays and the shortage of supply from farmers and hogs barns. PART 2- ENVIRONMENTAL AND ROOT CAUSE ANALYSIS The hog slaughtering plant located in Brendon, Manitoba has the capacity to slaughter 2.5 million hogs per year, around 50,000 per week and 10,000 per day. Hogs arrive at the slaughter plant from all over Manitoba and certain parts of Saskatchewan by trucks. Every farm is located within a different distance from the slaughter facility and delivery lead times vary from as low as half an hour to as high as three and a half hours. Farms vary in size, which impacts the lot sizes for each respective farm.

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