Operations and Inventory
What is the new product JBS plans to launch that is causing inventory concerns?
Garam Masala
What key challenge does JBS face in preparing for the new product launch?
Limited warehouse storage space
What is the current safety stock percentage JBS maintains in its warehouse?
10%
What is the proposed monthly cost of outsourcing warehouse storage to a third-party agency (before discount)?
₹150,000
What is the proposed safety stock percentage after implementing improved forecasting and reducing lead time?
5%
What was the lead time for order fulfillment in 2006, compared to the current lead time of 7 days?
25 days
What major forecasting method is currently used by JBS that may be causing demand inaccuracies?
Three-period simple moving average method
How has JBS’s reduced lead time to 7 days impacted its inventory management strategy?
It allows for lower safety stock levels and faster replenishment but may increase manufacturing inefficiencies if not properly managed.
What is the estimated cost to expand JBS's warehouse by 65 metric tons?
₹50 million
What solution did Vikram Panda want to pursue to fix the inventory issues?
Expand the warehouse