Questions Tobacco

Questions TOBACCO

1. (flow diagram)

2. What is the type of process that TOBACCO has in the current situation? Why? (More information about process types can be found from page 180 in the textbook). Please motivate your answer.

The type of process, that TOBACCO uses, can be described as a manufacturing cell. There are products, which are similar in processing, produced in cells. The range of products is limited due to the fact that TOBACCO only produces tobacco with different flavors.

3. Identify and characterize the Customer Order Decoupling Point(s) in the current situation. What is the main driving force for TOBACCO that determines the current location of the Customer Order Decoupling Point(s)? Why? (More information on the CODP can be found from page 175 in the text book). You need to give 2 reasons for the choice of each CODP.

A first CODP is the warehouse storage where unfinished products are stored. Another second one is the warehouse for finished goods, where the filled tobacco cans are kept in stock. The main driving forces for the location of the CODPs is to minimize costs of logistics. This explains why the raw materials warehouse is placed in The Netherlands, because this country lays central in Europe and the infrastructure, both asphalt and water, is well connected to receive and send tobacco all over the world.

Next to that, the other materials such as cans and ingredients for special flavors are produced in the Netherlands. Thus, the placement of a warehouse close to where other materials are is logical and saves costs for transportation. The reason for the placement of the warehouse for finished products in the Netherlands, again is the infrastructure and the central place. Another reason is the fact, that the finished product is put together in the Netherlands.

4. Under the current financial crisis, TOBACCO intends to shorten its delivery lead

time in order to maintain its competitive advantages. As a production manager,

what should you do to achieve the goal? Please elaborate your solution with

arguments.

In order to shorten the delivery time, one can enlarge the finished products inventory, so that when a customer places an order, the customer can receive the tobacco almost immediately. The inventory can use the First In First Out method, this will prevent tobacco from expiring.

Questions for TUIPS BV

1. (flow diagram)

2. What is the type of process that TUIPS BV has in the current situation? Why?

(More information about process