A supplier provides parts to a manufacturing company that demands JIT deliveries. At the present time it takes 6 hours to make a round-trip between the supplier's warehouse and the customer, including loading, travel and unloading time. The lot size is 12 pallet loads on a truck, and the manufacturer uses 2 pallets per hour.

Question

1. How many trucks are needed to ship the pallets to the manufacturer?

2. What is likely to happen if the trucks break down?

3. How can the supplier ensure that the customer does not run out of parts even in the face of delivery problems or other uncertainties?

4. What will happen if the manufacturer runs into trouble and shuts down for a period of 6 hours?

5. If unexpected overtime is required, how do you effectively communicate the need to your workforce?

Answer 1

1. Each shipment of 12 pallets will last 12/2=6 hours, which matches exactly the capacity of one truck.
2. manufacturer is likely to run out of raw material unless provisions are made.
3.
a. manufacturer keeps a reserve
b. supplier keeps spare trucks/personnel and efficient communication system.
4. Assuming he does not have space to keep more than 12 pallets, supplier has to be informed of delay and ship accordingly.
5. varies with the organization structure.