National Air Express Case Study
National Air Express
The business problem facing National Air Express is the majority of customers want pickups as late as possible, around 5:00 p.m., but there are not enough drivers to satisfy this need. I would say a major problem is that the station manager, Frank Smith, is focusing on the budget constraints, which is important; however, the needs of the customers must be met. He is considering adding capital expenses when business does not seem to be increasing. Smith is preparing his quarterly budget report, which will be presented at the Southeast regional meeting in the following week. He is very concerned about adding capital expense to the operation, to meet the demands of current customers, when business has not increased appreciably. According to the case, this has been the worst first quarter Smith recalls, primarily due to weather conditions. He has asked Martha Lewis, his field services supervisor, to help him review the available data and offer possible solutions (Heizer & Render, 2013).
In the Case Study of the National Air Express, Smith and Lewis manage a fleet of 24 trucks in Chattanooga, TN. The service which is being provided in the case study is door-to-door overnight air-express delivery within the United States. Routes are assigned by area, usually delineated by zip code boundaries, major streets, or key geographical features, such as the Tennessee River. The majority of customers in this area have pickups scheduled between 3:00 p.m. and 6:00 p.m., Monday through Friday. Most call-in customers are wanting pickups as late as possible, just before closing (usually around 5:00 p.m.). When the driver arrives at each pick up location, he or she provides supplies as necessary (an envelope or box if requested) and must receive completed air waybill for each package. Because industry is extremely competitive, a professional, courteous driver is essential to retaining customers. Therefore, Smith has always been concerned that drivers not rush
The business problem facing National Air Express is the majority of customers want pickups as late as possible, around 5:00 p.m., but there are not enough drivers to satisfy this need. I would say a major problem is that the station manager, Frank Smith, is focusing on the budget constraints, which is important; however, the needs of the customers must be met. He is considering adding capital expenses when business does not seem to be increasing. Smith is preparing his quarterly budget report, which will be presented at the Southeast regional meeting in the following week. He is very concerned about adding capital expense to the operation, to meet the demands of current customers, when business has not increased appreciably. According to the case, this has been the worst first quarter Smith recalls, primarily due to weather conditions. He has asked Martha Lewis, his field services supervisor, to help him review the available data and offer possible solutions (Heizer & Render, 2013).
In the Case Study of the National Air Express, Smith and Lewis manage a fleet of 24 trucks in Chattanooga, TN. The service which is being provided in the case study is door-to-door overnight air-express delivery within the United States. Routes are assigned by area, usually delineated by zip code boundaries, major streets, or key geographical features, such as the Tennessee River. The majority of customers in this area have pickups scheduled between 3:00 p.m. and 6:00 p.m., Monday through Friday. Most call-in customers are wanting pickups as late as possible, just before closing (usually around 5:00 p.m.). When the driver arrives at each pick up location, he or she provides supplies as necessary (an envelope or box if requested) and must receive completed air waybill for each package. Because industry is extremely competitive, a professional, courteous driver is essential to retaining customers. Therefore, Smith has always been concerned that drivers not rush
References: Heizer, J., & Render, B. (2013). National Air Express case study. In Principles of operations management (9th ed.). Upper Saddle River, NJ: Prentice Hall.