Phantom Glass Ltd.

PHANTOM GLASS LTD.

Supply Chain Management

Case Study

Pearl Academy of Fashion

Date: March 30th, 2010

Submitted By:

Vivek Pansari

Q1. To bring down the inventory-carrying cost, which includes the carrying cost for packaging material; would you suggest the storage of glass sheets in an unpacked condition and packaging only at the time of dispatch? Discuss the new system in light of the problems they may face..?

Ans1. According to me, the idea of storage of glass sheets in unpacked condition and packaging only at the time of dispatch is better. As the space required for the packed glass sheet is approx 30% more than the unpacked material. The carrying cost of glass from the manufacturing unit to the warehouse can also be reduced.

As the data shows the company can face some legal problem as they store 250 CSQM of material per sq meter of warehouse floor space, while the international standard for easy and safe material storage and movement is 175 CSQM per sq meter of the warehouse floor space. Due to less availability of space a lot of time is spent in removing the other crates to locate the right material and clear the movement path for the forklift.

Q2. What measures would you suggest to Phantom to reduce the inventory level?

Ans2. To reduce the inventory level at Phantom glass I would suggest the company to work on policy in which they manufacture all the odd sizes on the order basis called Make to Order. As the company is facing the problem in maintaining the inventory of odd sizes and it is give that at any point of time the company is holding 60% of total value of odd sizes. As the company cannot stop manufacturing the odd sizes as the 50% of the total sale of the company is of odd sizes.

Q3. In light of the storage density they are presently having, is this a case for additional warehousing space? Justify.

Ans3. As the data shows that the inventory turnover ratio is 3.8 million CSQM.

And the total sale of the...