Supply Chian System of Robin Tex Ltd

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1.2 Mission

Robintex Group believes that the final analysis it is accountable to each of constituents with whom it interacts, namely, its employees, customer, business associates, fellow and citizens.

1.3 Vision

To be one of the best leading composite mills in Bangladesh. To build a true marketing lead enterprise with motivates workforce, innovative mission and understanding global market.

1.4 Scope

Increasing the storage and production capabilities can be one important section of the future consideration. There are some external and internal factors that have an effect on the overall industry and thus tend to have strong influence on the company itself.

1.5 Methodology

The business plan has been prepared mainly based on primary research. The primary research is based on the interview that we took from an employer of Robintex Ltd. The questions were basically open-ended and the information was both quantitative and qualitative. Informal Focus Group Discussion was conducted among ten people, consisting of students as well as other employers. The respondents were within the age group of 16-35 and different income groups. Also, we had undergone through several phone call interviews. Secondary research has been used but not to such an extent.

1.6 Limitation

The overall plan has been driven by the details we formulated from that interview. The limited scope to have done a sufficient study to ensure more appropriateness of the overall factors should not be overlooked. Due to lack of experience and ability proper justifications were somewhat not developed. The analysis may not be very accurate since it is purely based on the details we could generate from that employer. The estimated budget costs and forecasted demand, inventory and sales data may not be completely accurate also.

2. Description

2.1. Goals, Strategies, and Competitiveness Analysis

Goals: The goal of Robintex Group is to become the preferred partner for sourcing high quality fabrics and clothing from Bangladesh. With highly advanced technology and an emphasis on developing local human resources.

Strategies: Robintex Group has the potential to make an important contribution to the nation’s growing ready-made garments export sector. The rationale behind the existing structure and future expansion of Robintex Group is to capture value-added at each stage of textile manufacturing process. Robintex offered very high-quality product and they already achieving some international certification.

In this competitive and dynamic business world development is a factor which should be considered in a serious manner. Robintex already did it well and they have a research and development team. The team does necessary tasks to develop their product to make them more competitive. Robintex group build a strong relationship with people and they taking part in different social activities for they will able to reach more people.

Competitive analysis: Despite Bangladeshi’s lack of indigenous cotton production capability. Robintex Group has leveraged Bangladeshi’s labor cost advantages and export competitiveness to the maximum. Their main competitors in the industry are Echotex, Renaissance Group, Masco Group and other large composite knit garments.

2.2. Forecasting demand

Robintex Group uses the moving average method to calculate the demand forecast of their company. For the moving average they use the historical data of the most recent years. Over here they have taken the actual sales of the year 2014, 2015 and 2016 for their calculation. Through the moving average method, they have estimated that their demand for 2017 will be approximately 2,486 million.

Analysis: The moving average method for the forecasting is based on historical data’s, so depending on how recent the historical data’s are; we can determine the accuracy level of the forecast. In other words, the more recent the year, higher the accuracy. That is why over here, we can say that the demand forecasting of the year 2017 is more likely to have a higher accuracy.

Recommendations: The three year moving average method they’re using is reliable but there are other methods they can consider. Like the weighted moving average method, where they can assign more weight to the most recent values. The advantage over here would be that this method is more reflective of the most recent occurrence.

Weighted Moving Average = (2721.800)*.25+ (2164.430)*.35+ (2572.550)*.40 = 2467.021

There is one other method that they can use for their forecasting and it’s the naïve method. But the naïve approach isn’t very reliable as it lacks accuracy and we can’t say for sure that the demand for 2017 will equal to the year 2016.

Year

Demand forecasted (Moving average)

2014

2,721.800 Million (Actual)

2015

2,164.430 Million (Actual)

2016

2,572.550 Million (Actual)

2017

2,486.260 Million

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2.3. Strategic capacity planning:

Robintex Group is a 100% export oriented ready-made garment. Having a proper Capacity plan is only natural. Having enough goods in their inventory and managing it is a necessity. Since the goal of strategic capacity planning is to achieve a match between long term supply capabilities and the predicted level of long term demand.

In terms of measuring capacity, we can look at their efficiency percentage and Utilization percentage. Robintex Bangladesh Ltd. has 52 sets Circular Knitting machine with production capacity of 4056.0 MT fabrics annually (13.00 MT per day).

Equipment

Capacity

Price (BDT)

sets Circular Knitting machine

4056.0 MT fabrics annually (13 MT per day).

1,451,340