Assignment 1 -BAA210

Assignment 1
Logistics and Supply chain
Question 1 :
Please read the attached case and answers the following questions.
Ace Dairies gives a home delivery service for milk, dairy products and a range of related
goods. Roger Smitheram has run the dairy for the past twelve years. His product is a
combination of goods (the items he delivers) and services (the delivery and associated
jobs he does for customers). At the heart of operations is an information system which
contains full details of all Roger's 500 customers, including their regular orders, special
orders, where to deliver, how they pay, and so on.
Every day the system calculates the likely sales of all products in two days' time. Roger
adds some margin of safety, allows for likely variations and passes his order to Unigate
Dairy in Totnes in Devon (about 150 km away). This Unigate depot acts as a wholesaler
for milkmen in Wales and the southwest of England. The following evening it delivers to
a holding depot in Camborne, and then takes Roger's goods 10 km to a cold store in
Hayle. At 5.30 the following morning Roger collects the order from his cold store and
starts delivering to customers.
This normally takes until 1.30 in the afternoon, but on Fridays he spends more time
collecting money and often finishes after 5.00 pm. There are several specific problems
facing Ace Dairies. There is, for example, some variation in daily demand, so Roger has
to carry spare stock. He cannot carry too much, as dairy products have a short life and
anything not delivered quickly is thrown away.
Roger aims at keeping this waste down to 2 per cent of sales. There are also problems
maintaining a service during holidays, or when Unigate has difficulties with their
deliveries. Perhaps Roger's main concern is maintaining his sales over the long term.
Demand for doorstep deliveries is declining, as people buy more milk at supermarkets.
The number of milkmen in Hayle has declined from ten in 1987 to three in 2002. Most of
Roger's customers have been with him for many years, but he generates new custom
by canvassing, delivering leaflets, special offers, carrying a range of other products, and
so on.
1. Describe and Draw the supply chain for milk? ( 2 Marks)

a. Raw Material: milk
b. Suppliers: Roger Smitheram (The following evening Unigate business
delivers to a holding depot in Camborne, and then takes Roger's goods 10 km
to a cold store in Hayle.)
c. Manufacture: Unigate Dairy
d. Distribution: At 5.30 the following morning Roger collects the order from his
cold store and starts delivering to customers.
e. Consumer: Customers that are normally milk and breakfast lovers.
2. Where does Ace Dairies fit into this? ( 2 Marks)
in Camborne. (because this place of store Ace Dairies that receives from Unigate
Dairy)
3. What specific activities form the logistics in Ace Dairies? ( 2 Marks)
1.Purchasing: Ace Dairy receives regular orders, special orders from Roger's
500 customers, and that includes Unigate Dairy.
2.Inward Transport or traffic: Unigate delivers to a holding depot in
Camborne.
3.Receiving: this is done without anything to remember. But Ace Dairy have
several specific problems facing Ace Dairies. For example, anything that is not
delivered quickly is thrown away.
4. Warehousing or stores: Unigate Dairy takes Roger's goods 10 km to a cold
store in Hayle.
5.Stock control: Ace Dairies anything not delivered quickly is thrown away.
6.Order Picking: At 5.30 the following morning Roger collects the order from his
cold store.
7.Materials handling: After Unigate receives milks from Roger, I think that milk
packaged the trademark. At the heart of operations is an information system
which contains full details of all Roger's 500 customers,
8.Outward Transport: At 5.30 the following morning Roger collects the order
from his cold store and starts delivering to customers.
9. Physical distribution management: starts delivering to customers.
10. Recycling, returns and waste disposal: There is, for example, some
variation in daily demand, so Roger has to carry spare stock.
11.Location: Unigate Dairy have delivers to many cold stores to customers.
12.Communication: I think Roger's farm workers are telling Roger that there is
milk that has been sitting for a while without being delivered.
4. What are the main problems that Ace Dairies has with logistics? ( 3
Marks)
There are several specific problems facing Ace Dairies. There is, for example,
some variation in daily demand, so Roger has to carry spare stock. He cannot
carry too much, as dairy products have a short life and anything not delivered
quickly is thrown away. There are also problems maintaining a service during
holidays,
5. What mode of transportation ACE uses ? ( 1)
The paragraph does not mention the means of transportation. But most likely the
milk wholesaler uses refrigerated trucks.
Question 2 :
Many items need special protective packaging during moves. Materials used
in industrial packaging are Glass , Plastic , cardboard , wood , metal .
Compare between all these materials . Provide your answers with pictures
and evidences .
1. Glass: Advantage: Durable
and infinitely recyclable.
Provides good protection
against air and moisture.
Disadvantage: Heavy and
breakable which can
increase transportation costs and risks.
And used for storing beverages, storing cosmetics.
2. Plastic: Advantage: Lightweight and not easily

breakable. It can be
manufactured in different shapes
and sizes. Disadvantage: Plastic
contains a substance or virus
called microplastic which causes
damage to the human body.
Plastic expresses the price reduction.
And used in bottles, food containers, and bubble
mailers.
3. Cardboard: Advantage:
Lightweight and easy to fold
and shape, and recyclable
and customizable as
needed. Disadvantage: It
provides medium protection and is often used as an
outer rather than an inner cover.
And used in packing boxes, paper packaging for light
products.
4. Wood: Advantage: Very durable and strong, provides

high protection during use and
making shapes. Disadvantage:
It Heavy and difficult to
transport, not practical for
small packaging.
And used in large cargo
boxes, furniture industry.
5. Metal: Advantage: Solid and durable, provides

maximum protection for sensitive products.
Disadvantage: Expensive
and heavy compared to
other materials.
And used in food cans,
metal drums, chemical
product packaging.

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Assignment 1

Logistics and Supply chain

1. Describe and Draw the supply chain for milk? ( 2 Marks)

5. What mode of transportation ACE uses ? ( 1)

2. Plastic: Advantage: Lightweight and not easily

4. Wood: Advantage: Very durable and strong, provides

5. Metal: Advantage: Solid and durable, provides

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