SUPPLY CHAIN

1. TABLE
OF
CONT
ENTS
1. Comparison of Different Operational
Strategies for Multi-National
Companies
I. Internal/ export strategy
II. Global/Standardization Strategy
III. Multi-domestic strategy
IV. Transnational strategy
2. Richard muther’s layout planning
I. Application on Frozen Vegetable
Business
II. Results of muther’s grid
3. Transportation models
I. General layout
II. North-West Corner method + results
III. Intuitive Method + results
IV. Comparison

2. International/ Export
Strategy
• Primary focus on domestic
operations
• No
adaptability/customization
as international market
• No response to local
conditions
• Export/ licensed product
Local Responsiveness
Cost
Reduction
High
Low
Low
High
Multidomestic Strategy
• Product customization
according to each market
• Product designs, payment
methods decisions are
under country managers.
• Sale efficiency is
sacrificed over Local
Responsiveness
Transnational Strategy
• Standardization + Local
responsiveness
• Cost reduction to compete
international competitors
• Product quality
maintained
• Don’t have a single nation
identity
Global/ Standardization
Strategy
• Single product type for
every market
• Centralized market
strategies, product design
and supply chain
management
Comparison
of
Different
Strategies

3. MUTHER’S GRID LAYOUT PLANNING FOR FROZEN VEGETABLE
BUSINESS
1. Executive Cabinet
2. Operations Managers
3. Accounting
4. Marketing
6. Customer Service Center
7. Quality Assurance Team
8. Mechanical Technicians
9. Laborer
10. Logistics
11. Research & Development
5. Information Technology Department
A
E
X
O
U
I
CODE CLOSENESS
A Absolutely
necessary
E Especially
important
I Important
O Ordinary OK
U Unimportant
X Not desirable
O
O
U
O
I
A
A
I
O
O
U
U
O
O
E
O
O
U
O
O
I
I
E
U
U
X
U
I
E
O
O
X
I
E
I
X
X
I
U
O
U
E
I
O
X
U
I
X
U

4. TO
FROM
SAHIWAL ISLAMABA
D
HYDERABA
D
FACTORY
CAPACITY
LAHORE 100
MULTAN 300
KARACHI 300
WAREHOUS
E
REQUIREM
ENT
300 200 200 700
Rs.
5
Rs.
9
Rs.
8
Rs.
4
Rs.
4
Rs.
5
Rs.
3
Rs.
3
Rs.
7
Lahore’s
production
capacity
Transportati
on cost per
unit from
multan to
Hyderabad
Total
production
capacity of
company
Requirement of each demand area
GENERAL LAYOUT FOR TRANSPORTATION
MODELS

5. TO
FROM
SAHIWAL ISLAMABA
D
HYDERABA
D
FACTORY
CAPACITY
LAHORE
100
100
MULTAN
200 100
300
KARACHI
100 200
300
WAREHOUS
E
REQUIREM
ENT
300 200 200 700
5
9
8 4
7 5
3
4 3
1
2 3
4
5
TRANSPORTAITON MODEL FOR FROZEN VEGETABLE
PACKS USING NORTH-WEST CORNER METHOD
N
W
Direction of
Movement

6. TO
FROM
SAHIWAL ISLAMABA
D
HYDERABA
D
FACTORY
CAPACITY
LAHORE
100
100
MULTAN
200 100
300
KARACHI
300
300
WAREHOUS
E
REQUIREM
ENT
300 200 200 700
5
9
8 4
7 5
3
4 3
TRANSPORTAITON MODEL FOR FROZEN VEGETABLE
PACKS USING INTUITIVE METHOD
City selected
with lowest
cost =
intuition