Giant Food Store Supply Chain
Supply chains frequently change due to the rapid changes in the business environment (Hugos, 2011).
Therefore, companies need to monitor daily operations of these chains for them to achieve the desired objectives.
This could only be done by measuring the performance of each function separately and the whole supply chain in general.
The supply functions are transportation, inventory, production, location and information (Bhagwat & Sharma, 2007).
Rationale and pros and cons
Warehousing and storage ensures there is continuous supply of products to production as well as to distributors through timely management
The use of the metrics ensures that operations within the warehouse are timely and organized for ease of operations
The metrics focus more on time and organization but disregard the costs
Giant Food Store Supply Chain cannot rely on everyday supplies, and requires a warehouse for storing foods
Through custom clearing cycle, the company is able to find out the performance of the warehouse in terms of time
Using the floor space utilization, the company knows the amount of space that is under utilized
Moving of units per person hour determines the organization of goods in the store, whether everything is at the right place