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TYBMS
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firm ships about 85% of the finished product on pallets. The company uses 2,500
wooden pallets per month, each pallet costing Rs 1,000/-. The bulk bags hold
between 250 kgs to 500 kgs.
The work flow is listed below for the packaging and the material handling
system. It consists of the following stations and machines:
1. Automatic-drive bagging machines have three conveyor lines
2. Power-driven live roller chain conveyors move the bags horizontally and at a
slight elevation to the respective stations
3. Automatic weight checking machines identify and reject over-weight and
under-weight packages
4. Metal detectors identify and reject bags with foreign metals
5. Bags which have been rejected by the weight-checking machines and the
metal detectors are conveyed to a panel for further investigation
6. Palletizing machines automatically lift and place the packed products in the
desired pattern
7. After palletizing, the packed products are conveyed to the semi-automatic
stretch wrapping machine. This machine wraps the products in stretch film. Since
this machine is semi-automatic, three warehouse workers operate the machine
one to operate the system, one to put the top sheet on to the palletized goods,
and one to cut the end film and staple the end film on the pallet.
After stretch wrapping the products, the material handlers move the palletized
product to the designated storage place. Presently,
Superfine Sulphur owns one private warehouse and rents two public warehouses.
The rent paid to each of the two public warehouses was Rs. 150/- per square per
month. The floor area of both the public warehouses together is 50,000 square
feet. The monthly rent to the public warehouses is expected to double next year.
Superfine Sulphurs pallets are neither customized nor standardized. Hence, its
customers have trouble in unloading the pallets from the containers. This takes
too long to unload the pallets. Also, the hand pallet trucks truck rollers of the
customers stick to the pallets that is, create sort of a difficulty in the unloading of
the containers.
Customers have also complained about the contamination of the two top layers
of the product due to water/dust/atmospheric conditions during transportation
and storage.
Questions:
1) The product is vulnerable to water/dust/atmospheric conditions. Suggest
alternative methods of packaging, transporting and warehousing to ensure
protection of the product
2) Critically analyse the material handling systems of both, the company as well
as the customers and suggest suitable logistically viable alternatives
3) Study the increased cost of public warehousing and its implications on the
products profitability. Recommend suitable, viable alternatives that should fit into
the total systems concept and total cost concept of the company