Swift Company - Design for Supply

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in two different stages, first at main plant they assemble whole table and second stage they finish the product and pack it in Boxes to sell it to Customer at Finishing plant. After product will transfer to warehouse to store until sell it to customer. All three facilities are 90 minutes away from each other which will increase Shipping cost and Lead time both. Company has 2 hours to meet their Customer service level but if they sold out all their stock for the product which they order than it will take 4 and half hour in transportation. So I will highly recommend to the swift to find a bigger place in town where they can combine all their three facility under one roof so company save good amount of time and money to eliminate the shipping in between all three facilities. As well as they need fewer employees because they don’t need employee for loading and unloading. At this time company sell fully assemble product but I will highly recommend to redesign the product like IKEA so they can sell their product as dissemble with instruction to how to assemble so customer can easily assemble it at their home this changes will save good amount of labor money which company was spending to assemble it at their facility also this change will make compact to the product box which also save lots of the room in warehouse as well as in delivery van and they can deliver more products in one time compare to previous which can also bring some transportation cost down.

At this time company stock 10 unit of each style and they have 160 combination of product so they stock 1600 unit at all time but there are so many combination of product which is not highly popular or may be have really less turn around still stay at so I will recommend to run their sell report and on base on this report they start to do some analysis to adjust their inventory if product doesn’t move than they can reduce their inventory level from 10 to whatever their average one week sell which will definitely bring their inventory level down and they can maintain their 2 hours commitment to their customer without compromise.