1.12 Discussion and Practice

  1. Have you ever been in a terrible storm (hurricane or ice storm) that made it difficult to travel? Delivery trucks shared your challenge moving around. Consider what happens to the food and grocery supply chain during a disastrous storm.

    1. What do stores run out of first? Why do you think that is?

    2. What sort of perishable food items would you miss the most?

    3. For the items that you miss the most, where do they come from? Go onto the Internet and search for one of your perishables, e.g. “where does bread come from?” Based on what you discover, how long do you think it would take to get the supply back to a normal level after a weather interruption of three days? Include your thoughts on:

      • Getting the ingredients/packaging to the to the manufacturer of that item, if relevant

      • Producing the item

      • Filling the “pipeline” in the supply chain. Remember, if perishable items have been delayed, they may be spoiled, or at least have a shorter remaining life

      • Dealing with any surges in demand you restock your home pantry, if it is not an item purchased JIT for immediate consumption, like a cooked chicken from the Deli.

  2. Assume that you work for a company that sells text books to students. You are expanding your online presence so students can purchase books from you in person, or online from anywhere in the world.

    1. What types of utility do you think your customers will be looking for in buying from you online?

    2. Some students wait until the last minute to buy their books, and become a bit desperate to get them quickly. What are some creative ways that you could balance the trade-off of inventory versus customer service level and transportation cost and service level?

  3. Lean principles tell us that we “can have it all”—we can simultaneously be more efficient and effective by getting rid of waste in our system. The classic trade-offs tell us that you have to give something to get something—for example if you want better customer service, you need more inventory. Assume that you are in a business that sells specialty candy for holidays—Halloween, Christmas, Valentine’s Day, and Easter are your biggies. The candy is manufactured in holiday shapes and specially packaged, so it is not usable for other holidays, and has very little value after a holiday.

    1. In what part of the supply chain might the company be able to apply lean principles, and which lean principles would apply? Discuss

    2. In what part of the supply chain should the company be carefully thinking about and evaluating the trade-offs? Discuss

    3. Can lean and trade-off thinking be easily integrated in a company? Why or why not?

  4. When you go home tonight, pick a room where you live and try to apply the 5S’s to this room (before cleaning it up). It can be your bedroom, bathroom, living room or kitchen. Specifically indicate:

    1. What could you sort, get rid of, and/or put away?

    2. What areas could you simplify, and find a regular place to store (a place for everything and everything in its place)?

    3. How you could sweep or clean up the entire area?

    4. Is there a standardized process that you put into place to keep the area orderly?

    5. Can you train or instruct others who use the space in how the space is to be kept so that you can sustain the order in this space?

    6. Was this difficult to do? Why or why not? Do you think you can sustain it? Why or why not?

  5. The book discusses how logistics is a big part of the global economy and how improved logistics can improve living standards.

    For example, the Global Spotlight highlights how a farmer in India has increased earnings as logistics infrastructure has improved. Think about the country that you live in. How do you think that logistics has improved your living standard compared to that of your parents or your grandparents?

    Identify at least two or three specific examples and be prepared to share them in class.

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