Supply chain

Case Problem- R.C. Coleman

R.C. Coleman distributes a variety of food products that are sold through grocery store and

supermarket outlets. The company receives orders directly from the individual outlets, with a

typical order requesting the delivery of several cases of anywhere from 20 to 50 different products.

Under the company’s current warehouse operation, warehouse clerks dispatch order-picking

personnel to fill each order and have the goods moved to the warehouse shipping area. Because of

the high labor costs and relatively low productivity of hand order-picking, management has

decided to automate the warehouse operation by installing a computer-controlled order-picking

system, along with a conveyor system for moving goods from storage to the warehouse shipping

area.

R.C Coleman’s director of material management has been named the project manager in charge of

the automated warehouse system. After consulting with members of the engineering staff and

warehouse management personnel, the director compiled a list of activities associated with the

project. The optimistic, most probable, and pessimistic times (in weeks) have also been provided

for each activity.

1. Develop a report that presents the activity schedule (Earliest/Latest Start and Earliest/Latest

Finish) and expected project completion time for the warehouse expansion project. Include a

project network in the report.

In addition, take into consideration the following issues:

2. R.C. Coleman’s top management established a required 40-week completion time for the

project. Can this completion time be achieved? Include probability information in your discussion.

What recommendation do you have if the 40-week completion time is required?

3. Suppose that management requests that activity times be shortened to provide an 80% chance

of meeting the 40-week completion time. If the variance in the project completion time is the same

as you found in question (1), how much should the expected project completion time be shortened

to achieve the goal of an 80% chance of completion within 40 weeks?