Part A-

Assume that you have been hired to help a logistics company retain its contract with one of its clients, a retail supplier. The retailers expect a 24-hour turnaround from the time shipments come into the warehouse from the consolidation center. However, only 80% of products coming in are going out on time. The logistics company is failing miserably to meet its service level agreement (SLA). The process for transporting shipments is outlined below:

Shipments are put on conveyers and are sorted systematically. However, some shipments are large and cannot be put on conveyors. As a result, these shipments have to be palletized and sorted manually.

Shipments are barcoded, which determines the storage lane. However, the shipments are stored off the conveyer or manually in lanes that are not in close proximity to the lane for the products for outbound loading.

This process requires manual labor and slows productions. It also results in a loss of time.

In light of this scenario, answer the following questions:

Which layout strategy would you recommend to this company to improve its workflow and processes?

What kind of enhancements would you recommend to improve product's movement?

Part B-

TIGO is a company that manufactures handbags. The company is looking for an efficient way to produce a high volume of handbags with a small workforce. It has limited warehouse space-approximately 1,200 square feet-which it shares with another vendor. As an operations manager, you need to determine the best approach to maximize production for the company while keeping costs low. Your supervisor suggests the work cells layout strategy for maximizing production.

Why do you think the work cells layout strategy is the best solution for this company? Explain the factorsthat could have influenced your supervisor to recommend this strategy.

What are the advantages of using work cells layout strategy over other strategies?