CHITTAGONG INDEPENDENT UNIVERSITY

Operations Management/Operations & Supply Chain Management –MGT-330/331

SUMMER-2021 / CASE#01/SECTION#01

Group Name : Rainbow

Group Members:
Shahriar Mission- 19101033

Fozilatun Nahar- 18201016

Tahiyat Tabassum- 18201017

Sheikh Nazia Sultana- 19201006

Mahabul Alam Abhi- 17101010

Istiaque Karim Shafin- 18201050

Sajia Khanam- 20201057

Tanmoy Chowdhury- 19101064

Ayman Iqbal- 17201130

CASE ANALYSIS: Select a service organization from the country or outside of the
country. Briefly give us company background. After careful review, try to resolve
the following quarries:

1. What are the different decisions they make which cab classified as System
operations decisions and why?

2. Do the organization uses models? What types of model?

3. What kind of quantitative models they use?

4. Do they have R&D Department? What areas they are focusing?

5. Develop a simple Supply Chain model of the organization?

Company Background

Uber, a technology company, provides a platform for customers who wish to source a taxi
ride on their smartphones. Due to digital matching of demand and supply, capacity
utilization of the vehicle is optimum and this leads to an affordable pricing mechanism for
the services. Uber was founded in 2009 as Ubercab by Garrett Camp, a computer
programmer and the co-founder of StumbleUpon and Travis Kalanick.

System Operations Decisions

The sales team performs a value added function in terms of analysis of demand
generated, inventory information at the store level and this input is matched with
production inventory. This helps in production planning and control. But the success of
this process greatly depends on the technology algorithm and the manufacturer’s ability
to train people on using the app. Using predictive data modeling, information can
replace inventory and this leads to better inventory management. This can eventually
lead to lesser inventory and hence adoption of lean manufacturing.

Uber now includes the option to schedule a ride 15 minutes to 30 days in advance
using the Scheduled Rides feature.

HOW SCHEDULED RIDES WORK

The Scheduled Rides feature allows you to select a 10 minute pickup window for a
driver to come pick you up. A driver will be requested on your behalf before the start
of your 10 minute window so that it arrives in the window and you're on your way to
your destination. Scheduling a ride in advance does not guarantee you'll be connected
with a driver. In the rare case a driver cannot be found, you'll be notified at the end of
your selected time window.
HOW TO SCHEDULE
1. Tap the car icon with the clock located just to the right of the "Where to?" bar
Select a date and a 10-minute window of time
2. Tap SET PICKUP TIME
3. The pickup location will automatically set to your current location. Tap "Current
Location" to edit the pickup location. You'll have to move where the cursor is set.
4. Set your destination
5. Review your fare estimate and tap SCHEDULE.

CHANGING OR CANCELLING YOUR RIDE

1. In the app menu, tap Your Trips.
2. Select Upcoming
3. Select EDIT TIME or CANCEL RIDE

You can change or cancel your request at any point before being matched with a
driver without any charge. Normal cancellation fees apply once you have been
connected with a driver.

One of the ways of advancing the quality of the rides is the provision of a feedback
platform that gives the client an easier way of providing feedback.The feedback platform
helps recognize when the drivers provide quality and exceptional service. It aligns with
the company’s commitment to delivering a 5-star ride experience to all customers.
Models

Aside from subjective forecasting, quantitative forecasting approaches can be

assembled as follows: model-based or causal traditional, factual techniques, and
Machine learning approaches.

Model-based forecasting is the most grounded decision when the fundamental

instrument, or material science, of the issue is referred to, and as such it is the correct
decision in numerous logical and designing circumstances at Uber. It is additionally the
standard methodology in econometrics, with an expansive scope of models following
various speculations.

Many evaluation metrics have been proposed in this space, including outright blunders
and percentage mistakes, which have a couple of downsides. One especially helpful
methodology is to think about model execution against the ingenious figure. On account
of a non-occasional arrangement, a trusting figure is the point at which the last value is
thought to be equivalent to the following value. For an occasional time arrangement, the
forecasting is equivalent to the past occasional value.

Research & Development

Uber has launched a research center focusing on self-driving cars and mapping
technology. Taxi app Uber is taking its biggest steps yet towards a driver-free world,
launching the Uber Advanced Technologies Center in Pittsburgh “to do research and
development, primarily in the areas of mapping and vehicle safety and autonomy
technology”. It’s a massive investment in the future from a company still primarily
associated with the development of its app and associated back-end technology, but it’s
one that Uber has been hinting at for a long time. The company is keenly aware that the
majority of the cost of a journey comes from the driver’s salary, and has been eyeing
driverless cars as a potential savior.

Uber spent $457 million last year on research and development of autonomous
vehicles, flying cars (known as eVTOLs) and other technology programs and will
continue to invest heavily in the futuristic tech even though it expects to rely on human
drivers for years to come, according to the company’s IPO prospectus. Uber believes
that autonomous vehicles will be an important part of its offerings over the long term,
namely that AVs can increase safety, make rides more efficient and lower prices for
customers. Such situations may include trips along a standard, well-mapped route in a
predictable environment in good weather.

Uber is likely not the only transportation provider looking at the prospect of firing its staff
and replacing them with robots, but it is one of the few prepared to articulate that desire.
While a full move to driverless cars would be Uber’s dream scenario, letting it cut the
cost of a ride to little more than fuel plus wear and tear, it could very well be a nightmare
for car manufacturers. A self-driving car can carry someone from home to work, head
off to a different office and pick up someone going to the airport, even take a package in
the boot to be delivered to a client – all while a conventional car would be sitting in its
owner’s car park.

Supply Chain Model

Supply chain digitization is not simply taking existing information and capturing it in a
digital format. It is not about automating your existing SCM processes. It is not about
layering in Sales and Operation Planning as a band aid to connect disjointed processes.
It is about having the most current information to run the supply chain effectively,
available on demand, so uber can service their customers and grow profitably. Here is
how uber introduced its 6 design principles that make up a digital supply chain to
digitize the taxi experience, and draw parallels to digital supply chain:
·A person wants to get from A to B and opens the Uber smartphone app

· Optional: rough calculation range of trip costs with "Fare Quote" integrated in the
app

· Therider chooses the appropriate car service (a capital "U" indicates a relatively
more expensive service)

o UberX = low-cost Uber (e.g. Toyota Camry)

o UberBLACK = original (expensive) Uber (e.g. limo)

o UberXL = low-cost Uber for groups (e.g. Toyota Highlander)

o UberSUV = premium Uber for groups (e.g. Cadillac Escalade)

o UberT = normal taxi (mainly in NYC) - grab a cab via the Uber app, but pay
the taxi driver without the Uber app

· Then the rider sets the pickup location thanks to GPS and Google Maps, this is very
easy
 · Accordingto the type of service chosen, the closest unoccupied car will be matched
and confirmed; the respective number plate and the driver's name pop up on the
smartphone screen along with the estimated time of arrival and the most efficient and
therefore most likely route.

· The car arrives. The rider gets in and tells the driver where to go.

· Assoon as the car reaches the desired destination, the passenger's credit card will
be automatically charged and the receipt sent through via email or pay in cash

· The rider rates the driver within one to five stars depending on how they liked the
driver's behavior.

As data is collected electronically, inaccuracies in demand forecasts are minimized to a

great extent. Retailers and wholesalers share the inventory information and this is
consolidated at the regional level by the sales team.

The sales teams use a smartphone app to capture the demand uptick through a smart
phone app with the distributors, wholesalers and retailers. Area wise demand is
collected through the app and the area sales executives can share the data with the
regional sales office which can then coordinate with production after arriving at the
consolidated demand figure product wise. As data is collected electronically,
inaccuracies in demand forecasts are minimized to a great extent. Retailers and
wholesalers can share the inventory information and this can be consolidated at the
regional level by the sales team. Using predictive data modeling, information can
replace inventory and this can lead to better inventory management. This led to lesser
inventory and hence adoption of lean manufacturing.

Due to digital matching of demand and supply, capacity utilization of the vehicle is
optimum and this leads to an affordable pricing mechanism for the services. This
creates a win-win situation for the taxi aggregator services, customers and drivers

The mobile platform in logistics services can allow customers to track air freight, ocean
freight and import shipments in real time and obtain signatures on delivery. The app
incorporates elements such as dynamic route planning, pickup and delivery, route
changes.In the automotive logistics supply chain, customers can use the app to track
distribution of spare parts and timely delivery of shipments.