Kurlon Limited Case Study.

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Kurlon Limited

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Vinit Kumar Srivastava 363/40

        Before we venture into the answer demanded, one can observe from Exhibit 5 is that the quantity demanded is almost never equal to the quantity supplied. This is true in case of both the Bangalore Warehouse as well as Delhi ASO. From this observation, one can guess that the commitment level on part of the retailers is quite low (ordering higher and accepting lower units of mattresses, assuming the sales value for Delhi ASO implies the sales made to the retailers). Also, there is a lot of stock pushing on to the downstream members when the situation doesn’t warrant such an action. Sometimes, these anomalies are quite high and this doesn’t augur well for the integration of a supply chain. Another observation that can be made is that the truckloads that are arriving at each region aren’t in multiples of 160 or 320 as that would have optimized the transportation costs. When there isn’t much of a pattern in the dispatching (as compared to the indents), why not send dispatches in multiples of 160 or 320 whenever possible. As regards to the question here, there is one thing that doesn’t make sense. It can be seen that the Delhi ASO accounts for nearly 30% of Kurlon’s national sales and the figure of 10% is a little misleading and inappropriate.

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        With respect to configuration X at both the locations, one can observe that the anomalies (quantity supplied minus quantity demanded) are quite high and sometimes too huge for any rational logic for their presence (even the fact that X is a facts moving configuration cannot in some cases explain the huge difference between the two figures). These anomalies in turn reflect onto the supply chain as either “lost sales” or/and “inventories beyond requirement” which makes the supply chain highly inefficient. In addition, these anomalies seem to be much worse at the Delhi ASO as they are mostly, and on the aggregate ...

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