Managing Resources and Operations: how can the supplier ensure that the customer does not run out of parts even in the face of delivery problems or other uncertainties?

Managing Resources and Operations

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?