Supply Chain Management -- Case Studies Ask for more: wajih@guennoun.net

1. Human resources planning is about setting
the right working time, overtime, temporary
or not temporary, recruitment plan, training
policy, ...). Meanwhile, Human resources
planning should not make us forget the
operational constraints.
HOW TO SET YOUR
HIRING STRATEGY
CASE
STUDY

2. CASE STUDY : SET YOUR HIRING
STRATEGY
An airline company is wondering about its hiring and training strategy (Agents) for the next year. Knowing the
planned flights & monthly forecast for the next year.
The stewarts / hostess / agents hired are always followed by a month of training during which the New hires can not
provide service on scheduled flights. This training is Assured by experienced agents. The company's collective
agreement stipulates that Each new hostess is taken care of by an experienced hostess .
This support dispenses the experienced hostess of 100 Hours during the training month. Experienced hostesses
make a maximum of 150 flight hours per month. At the beginning of the month Of January, the company employs 60
hostesses who are all experienced.

3. CASE STUDY : SET YOUR HIRING
STRATEGY
Forecast Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Total hours 8 000 9 000 10 500 11 300 10 800 10 200 9 000 11 000 8 000 9 000 11 000 8 000
The collective agreement in force makes it virtually impossible to dismiss cabin. Moreover, past experience shows
that each month about 5% of trained staff Leaves the company. The cost of an experienced hostess is 4500 € per
month. The cost of a hostess Training is € 2600 per month.
 We try to propose a policy of hiring and training hostesses for the 12 months to come up.

4. CASE STUDY : SET YOUR HIRING
STRATEGY

5. For more details
wajih@guennoun.net

6. Planning / optimizing the production is a very
interesting task. Today, customers' demands
are complex in terms of quality, flexibility,
availability and delivery time.
The diversity of products increases and
demand can fluctuate sharply. Then, each
material resource must be well exploited.
CASE STUDY
HOW TO SET A
PRODUCTION PLANCASE
STUDY

7. CASE STUDY : SET A PRODUCTION PLAN
The company X is specialized in the production of heavy equipment. Monthly sales of product A are described in the
next table. This one Operates 8 hours a day under normal conditions.
We estimated that each employee in this workshop can assemble an average of 2 products A per 8 hour period.
 You have been asked to build a hiring plan associated with Overtime GO/NO GO decision over the next 6 months
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Forecast (units)
1 100 1 600 2 200 1 600 2 000 1 600

8. CASE STUDY : SET A PRODUCTION PLAN
The Company can increase production by having overtime worked. The Employees are paid 1170 € per month for
normal work and 11 € per hour additional. Existing regulations limit overtime to 64 Per person per month. The
Company can hire or fire staff. The costs of hiring and Dismissal of a worker are respectively € 330 and € 450.
Collective convention Stipulates that the product A assembly workshop must employ at least 14 people. Given its
size, it is excluded that more than 20 people Employed in this workshop.
It is possible to store product A. The cost of storing a product A is Estimated at 9 € per month. It is desired to
permanently store a security stock of 200 product A.
Given the current situation, it is estimated that on 31 December 2002, the company Will employ 15 people in the
workshop and will have a security stock of 300 units

9. CASE STUDY : SET A PRODUCTION PLAN

10. For more details
wajih@guennoun.net

11. CASE
STUDY
We usually optimize / design the supply chain to
match the demand. Now think outside the box, and
shape your demand to match you logistical
constraints.
This is the aim of the following case study.
Can we come out with trade terms strategy to shape
your customer orders?
HOW TO SHAPE
YOUR DEMAND

12. CASE STUDY : HOW TO SHAPE DEMAND
An FMCG company is wondering about how to drive the demand in order to match with logistics constraints. Below
the structure of the network based on different plants depending on the category of the product, (with small capacity
for storage) and one distribution center. The fleet offers different capacities, depending on the size of the customer
order to be shipped.
Prod. Category 1 & 2
Capacity 200 Pallets
Prod. Category 3
Capacity 300 Pallets
Prod. Category 4 & 5
Capacity 500 Pallets
Distribution center 7 pallets
30 pallets
3 pallets
Customer

13. CASE STUDY : HOW TO SHAPE DEMAND
The below table shows how customer orders are currently placed. The company is looking for a better order split to
optimize logistical cost and supply chain constraints
3 Pallets 7 pallets 15 pallets 30 pallets
Transport Cost
per pallet ($)
1800 1500 1300 900
Category 1 73% 23% 4% 0%
Category 2 64% 32% 4% 0%
Category 3 39% 54% 7% 0%
Category 4 5% 20% 25% 50%
Category 5 0% 8% 18% 74%

14. CASE STUDY : HOW TO SHAPE DEMAND
The company asked you to build a plan to drive the
demand as shown in the below table
3 Pallets 7 pallets 15 pallets 30 pallets
Category 1 20% 80%
Category 2 20% 80%
Category 3 20% 80%
Category 4 20% 80%
Category 5 20% 80%

15. CASE STUDY
Shipping plant

16. Congratulation, you just have been hired by the company X to define an optimal supply plan to satisfy the 3 markets from three
production plants. The network associated with the transport network is as follows
CASE STUDY 2 Shipping plant
Delivery cost from plant X to Market Y
Cost ($) Market 1 Market 2 Market 3
Plant 1 21 50 40
Plant 2 35 30 22
Plant 3 55 20 25
Availability VS Demand
Plant 1 275,000 Market 1 200,000
Plant 2 400,000 Market 2 600,000
Plant 3 300,000 Market 3 225,000
DemandAvailability

17. CASE STUDY
PLANT LOCATION

18. In order to supply its warehouses located in Los Angeles and New York and because of the extension of its request, company X
must decide on the establishment of a plant, among the 2 choices, New Orleans and Houston, below the unit cost of production
and distribution as well as production capacity and demand volumes.
CASE STUDY plant location
Financial production parameters
Plant Los angeles New york Capacity Unit cost
Atlanta 8 5 600 6
Tulsa 4 7 900 5
New orlean 5 6 500 4
Houston 2 7 500 3
Demand 800 1200

19. CASE STUDY
REVERSE
LOGISTICS
CASE
STUDY

20. CASE STUDY - REVERSE LOGISTICS
As Supply chain manager of an FMCG company, you have been asked to redesign the trade terms to re shape the
reverse logistics issues.
When the product is damaged, the customer returns the product and the manufacturing firm would then have to
organize shipping back and proceed with destruction and then refund the customer.
Based on the last year return history vs sales, you have 2 Days to come out with a new trade terms strategy to
reduce the returns due to damaged products!!!

21. Get the Data