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    Risk Pooling

    Uploaded by

    Nitin Sonkar
    Risk pooling is an important concept for improving supply chain management. It helps companies think about the impacts of decisions on inventory, warehouse location, transportation, push-pull strategies, and product design. The document proposes applying risk pooling to address issues in a university cafeteria's supply chain, such as food waste from variable demand and low service levels from supply problems. The proposal suggests preparing food for students and faculty together in batches to lower costs by pooling resources and demand risks compared to separate preparation processes. The results would be lower costs from reduced waste and expenses, better demand forecasting, and improved customer satisfaction.

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    Risk Pooling

    Uploaded by

    Nitin Sonkar
    214 views13 pages
    Risk pooling is an important concept for improving supply chain management. It helps companies think about the impacts of decisions on inventory, warehouse location, transportation, push-pull strategies, and product design. The document proposes applying risk pooling to address issues in a university cafeteria's supply chain, such as food waste from variable demand and low service levels from supply problems. The proposal suggests preparing food for students and faculty together in batches to lower costs by pooling resources and demand risks compared to separate preparation processes. The results would be lower costs from reduced waste and expenses, better demand forecasting, and improved customer satisfaction.

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    Risk Pooling

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    Risk pooling is an important concept for improving supply chain management. It helps companies think about the impacts of decisions on inventory, warehouse location, transportation, push-pull strategies, and product design. The document proposes applying risk pooling to address issues in a university cafeteria's supply chain, such as food waste from variable demand and low service levels from supply problems. The proposal suggests preparing food for students and faculty together in batches to lower costs by pooling resources and demand risks compared to separate preparation processes. The results would be lower costs from reduced waste and expenses, better demand forecasting, and improved customer satisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    214 views13 pages

    Risk Pooling

    Uploaded by

    Nitin Sonkar
    Risk pooling is an important concept for improving supply chain management. It helps companies think about the impacts of decisions on inventory, warehouse location, transportation, push-pull strategies, and product design. The document proposes applying risk pooling to address issues in a university cafeteria's supply chain, such as food waste from variable demand and low service levels from supply problems. The proposal suggests preparing food for students and faculty together in batches to lower costs by pooling resources and demand risks compared to separate preparation processes. The results would be lower costs from reduced waste and expenses, better demand forecasting, and improved customer satisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    Risk Pooling

    Introduction

    Risk pooling is one of the most important theoretical concept


    needed to be understood to have a better supply chain for any
    company

    Bullwhip effect can be ranked as second

    It helps a lot in thinking about the impact on supply chain decisions


    1.

    Inventory Management

    2.

    Warehouse location and product flow

    3.

    Transportation

    4.

    Push-Pull Strategy

    5.

    Product Design

    Existing Problems

    Wastage of food:

    Huge variability in demand

    Frequent eat outs e.g. on weekends, birthdays etc

    Variation in quality of food due to improper staff planning

    Occasional ad-hoc time table changes

    Low Service Level:

    Untimely supply of raw materials

    Unavailability of primary chef and staff

    Scope for more accurate and proper information sharing

    Proposed Solution

    Waste Management

    Separate the organic waste from the general waste and


    place in a separate bin

    Weigh the bin and subtract the weight of the bin to estimate
    the quantity of catering food waste produced

    Multiply your daily value by 7 to calculate the weight of food


    waste produced per week

    Proposed Solution

    Costs associated with catering waste:

    Disposal Cost:
    Multiply the cost of collection per kg by the
    actual weight calculated. This gives you the
    total waste disposal charge for the year

    Proposed Solution

    Costs associated with catering waste:

    Fresh Food Cost:


    Assess the average cost of new food
    ingredients from a sample of invoices

    Proposed Solution

    Costs associated with catering waste:

    Staff Cost:

    Estimate what proportion of the total food that is


    bought is thrown out

    Then estimate the number of hours that staff spend


    preparing food and the associated cost

    Then multiply this value by the proportion calculated


    above

    From the previous observation of food wastages, a better


    information about customers demand and choice can be
    determined

    Then an appropriate push-pull strategy can be


    implemented in this case by preparing food in two batches

    Proposal 1

    Preparing and serving food in two batches using postponement and


    push pull

    Total serving time = 2Hrs.

    Lot 1 = 30 mins

    Post Lot 1 : Check the food wastage by tracking bins &


    serving bowls post 30 mins.

    Lot 2 = Prepared and served Post 30 mins.

    Lot 2: Depending upon the wastage and demand in first lot


    food preparation is completed for the second lot and
    served.

    Note: The role of information sharing among


    students is vital
    The role of mess manager is now more crucial as
    decision has to be taken on the go

    Proposal 2

    Risk Pooling

    Risks associated by having two different preparation processes of


    food

    Increased cost

    More time taking

    Risk pooling helps in better inventory management by

    Providing common menu

    Common preparation of food

    Results

    Lowering of cost due to preparation of common food for both


    (faculty and students)

    Lowering of expenses due to low wastages

    Better demand forecast

    Offset of ones demand by anothers (Pooling of risk associated with


    time, resource and demand)

    Better customer satisfaction

    Thank You !!

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