Integrated Logistics for Dep/ Gard
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Case Study “Integrated Logistics for DEP/ GARD”
Case Study “Integrated logistics for DEP/ GARD”
Major Facts
Currently Guard Automotive Manufacturing (GARD) schedules delivery 10 days from date of order (Bowersox, et.al, 2013). Considering the previous acceptable standard of on-time delivery occurring with a five-day window, DEP had a minimum service threshold of 96.2 percent which is above GARD’s standard of 95 percent (Bowersox, et.al, 2013). GARD’s new purchasing manager plans on having a three-day on-time service window within three years and after that he is shooting for exact day delivery with 96.5 percent service capability (Bowersox, et.al, 2013). Assuming Dupont Engineering Polymers (DEP) continued is current supply chain practices it would only have an 80.0 percent service capability when trying to meet the future requirement of exact day delivery (Bowersox, et.al, 2013). Currently the minimum order cycle for DEP’s supply chain is eight days (Bowersox, et.al, 2013). This 11 day cycle assumes the minimum of two days it takes for DEP to receive its chemical compounds from supplier, six days for production, and three days sitting in warehouse before shipment (Bowersox, et.al, 2013). The maximum order cycle is 24 days (Bowersox, et.al, 2013). This 24 day cycle assumes nine days to receive its chemical compounds from suppliers, eight days for production, and seven days sitting in inventory before shipment (Bowersox, et.al, 2013).
Major Problem
The major problem facing DEP is that in order to maintain its business contracts with GARD it has one year to demonstrate to the new purchasing manager substantial progress towards the goal of exact day delivery from 10 days of when the order is placed with a 96.5 percent service capability (Bowersox, et.al, 2013). Even though this condition is not required for 3 years, the current contract ends in one year. Therefore DEP must do everything in its power to come as close to this goal as possible and sell GARD on the promise that it will continue to improve in supply chain and ultimately meet or exceed GARD’s requirements.
References
Bowersox,