Flow of products and information within the supply chain
Course:- Supply Chain Management
Reference No.:- EM13866736

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Case study - Managing Supply Chain Complexity in a Tea Manufacturing Company

1. Make a diagram showing the supply chain configuration of Tehindo as well as the flow of products and information within the supply chain.

2. Compare the bottled Goteh and Fteh in terms of challenges in managing their supply chain processes.

3. Discuss the causes of temporary demand (and order) increases in this supply chain.

4. If you were the supply chain manager of this company, what would be your suggestions in the second meeting?

5. How does information distortion happen in this supply chain, and what would be your suggestions to reduce it?

6. Discuss the advantages and disadvantages of vertical integration and outsourcing for Tehindo.

Note to writer: please make sure you do the diagram for question 1 please as it is very important.You are required to analyse and answer the six ‘Discussion questions' in the case study ‘Managing supply chain complexity in a tea manufacturing company'.

The case study is supplied as a separate document (see ‘Assessment 4: Case study and questions) and is taken from the companion website to the textbook, Wisner, Tan and Leong.

Length and/or format: Indicative total word count is 2500-3000, not including references, attachments or endnotes. There is no specific word limit for any one question.

You should answer each question under a separate heading:
• Question 1: Supply chain configuration
• Question 2: Challenges facing bottled jasmine tea and fruit tea
• Question 3: Temporary increase in demand/orders
• Question 4: Recommendation in the second meeting
• Question 5: Information distortion and the bullwhip effect
• Question 6: Outsourcing and vertical integration

Purpose and requirements

You will be assessed on your application of supply chain strategic concepts for effective operations and distribution management in business situations. Tehindo is a producer of a famous brand of ready-to-drink tea in Indonesia. In addition to its classical bottled jasmine tea, the company also produces various types of fruity tea. With the increase in product variety, the supply chain processes are becoming more challenging. This case can be analysed from various perspectives, but is particularly relevant to demand management, the bullwhip effect and coordination in supply chains.

The aim of this assessment is not to reproduce parts of the unit guide, textbook or readings, or to undertake research on the South-East Asian tea industry. Rather, you should carefully read the case study scenario and answer each of the six questions asked based on the material in the case study and what you have learned in this unit. By all means draw on the concepts in Supply Chain Strategy - this is vital

- but you should only quote from the unit guide or other sources where they add value to your assessment of the case study and understanding of the issues. ‘Padding', by way of unnecessary quotations or historical or other information not required to provide a succinct and coherent answer will cause you to lose marks.


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Table of Contents
Introduction 2
Configuration of Supply Chain 2
Challenges facing bottled Fruit Tea and Jasmine Tea 4
Temporary Increase of Demand 5
Recommendations in the Second Meeting 6
The Bullwhip Effect and Information Distortion 7
Vertical Integration and Outsourcing 8
Conclusion 9
References 10

Tehindo is said to be having a major history in the business of tea. The organization started off as a small business in the 1940s in Indonesia. The business of tea had been started in Central Java, but then was shifted to Jakarta as an attempt of capturing major markets after a business of 25 years. The first factory of the company had been opened in the mid- period of 1970s in Jakarta, while there was a production of tea in ready- to- drink bottles. With the inauguration of the factory, the figure of sales increased significantly, while there was a reflection of healthy market for products of tea. There are two businesses of Tehindo interrelated to one another to manufacture and distribute the products of tea. The processes of manufacturing are performed in ten plants of manufacturing, spreading across three islands in Indonesia, Bali, Java and Sumatera. In general, the policies of supply are based on proximity of geographical factors. There is still practicing of vertical integration model across the company. The leaves of tea are supplied by an organization in the corporate company of Tehindo.

While analysing the facts of this case study, focus will be created on different elements related to Tehindo. The key elements to be evaluated in this report are configuration of supply chain, challenges faced to bottle fruit tea and jasmine tea, temporary rise in orders, recommendations, the bullwhip effect and information distortion, and vertical integration and outsourcing. Based on this, key points of conclusion will be drafted while analysing these key elements of the case study, using the concepts of supply chain.

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