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.
How many trucks are needed to ship the pallets to the manufacturer?
What is likely to happen if the trucks break down?
How can the supplier ensure that the customer does not run out of parts even in the face of delivery problems or other uncertainties?
What will happen if the manufacturer runs into trouble and shuts down for a period of 6 hours?
If unexpected overtime is required, how do you effectively communicate the need to your workforce?
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