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?