Case Study
Executive Summary
The Director of Logistics and Procurement at Maple Leaf slaughterhouse has a semi-complex logistics problem to solve involving getting the right number of hogs at the right time from local farms to the slaughterhouse to maximize their productivity and keep their costs as low as possible. There are several key success factors important to the slaughterhouse that must be taken into account while making this decision, including: maintaining 100% capacity in production, take into account the appropriate times of operation of each of the stakeholders, and devising a schedule that takes into account the stress on the animals, trucks and drivers, all while keeping total costs as low as possible.
While taking into account the above requirements, the Director should choose to purchase 15 new trucks and trailers, keep the transportation and scheduling functions in-house at the slaughterhouse and create 30 size-adjustable pens to make sure the slaughterhouse can run at 100% capacity while keeping costs low. This option will allow the slaughterhouse to keep control of their critical logistics function to get the right number of hogs to the right …show more content…
If the numbers are consistently running over the estimates we will need to look into the root cause of the problem with the logistics team. Monthly billed hours will be given leeway of 3% before corrective action requirements kick in. Corrective action would vary depending on the root cause. For example, if the cause is unforeseen unloading times due to congestion at the plant during peak hours we will need to look into rescheduling shipments to spread out the arrival time of trucks. If the root cause is found to be truck downtime we will need to look into revising our preventative maintenance policies and