hw1
sri999
quant630.docxQANT630
Operations And Supply Chain Management
BLUE STAR NY
Group members
Sanith Kumar - 1317429
Sreeja – 1317461
Hector - 1320746
Executive Summary
Popular New York Gemstone & Jewelry Manufacturer Blue Star Gems NY LLC provides its digital Inventory management Information for the supply chain management of the company’s Online Infrastructure. Enhancing the efficacy and efficiency of the shop's operations and supply chain procedures is the goal of this operations and supply chain management project.
Inventory management, supply chain optimization, and process improvement are the project's three key areas of concentration. First, the inventory management system will be enhanced to guarantee ideal inventory levels and lower the possibility of stockouts or overstocking. This will optimize the supply chain. Finally, the store’s managing process, minimizing the total inventory costs will be optimized.
A thorough analysis of the current operations and supply chain procedures, the identification of potential improvement areas, and the adoption of new procedures and technologies to boost efficiency and effectiveness are just a few of the key activities that the project will entail in order to accomplish these objectives.
Blue Star Gems NY LLC would benefit from the effective execution of this project, including more Sales, lower expenses, and better inventory control. Additionally, by offering its customers on time products and improving the overall shopping experience, the project will help Blue Star Gems NY maintain its competitive edge in the market.
Company background
The company is a manufacturer and wholesaler of Gemstones. The Company was founded in 1987 in by Mr. Prakash Chand Vijay and has its operations to Bangkok (2000), Hongkong (2001), and New York (2019). The company entered the jewelry business few months back, as it is a small business it had very little knowledge on Inventory management and supply chain analysis of its products.
The New York Office is owned by Jyothi vijaywargi. It’s a Family-Owned Business. The office is opened in the Year 2020 in the Diamond Street of New York. Even though they opened recently they have an Excellent reputation in the Diamond Street with over 300 partner Retailer Clients in the Diamond Street with a revenue of 5-10 million dollars each year.
Current Issues
Management planning
The Company focused its operations mainly on Gems is now very much interested to start its jewelry line and the Company’s finished Jewelry Products comes from China. The Process of capturing Images, Cleaning the Images by Retouching, and publishing the products on different websites that the Company use is a Problem-Solving Inventory management question for the company.
Write now the company has one photographer and one person for retouching and one person for Publishing its products, but the company is having issues as most off the Jewelry line is in the company’s warehouse or not published yet on any websites. So, the Company doesn’t want to delay the work as this might cause a major effect on its sales and supply chain disruptions.
If inventory levels are monitored, the company might hire few more employers and handle the supply chain of its products and increase the company’s search engine optimization of the company’s websites and get good sales. Hence a study on supply chain analysis is required or Blue Star Gems NY LLC.
Requirements
The Company has one photographer who does photography, which would take around 20minutes and then the product goes to retouching which would take 40 minutes and finally publishing their product in 7 different online platforms that they use. The office working hours are between 10-6pm Monday to Friday. They also need one person for office work and delivery work both 3 hours each day!
Company requirement:
1) How many people should work in the office if they want to publish 200 jewelry products on each website that they use.
2) How many products can they publish if they employee only one photographer?
Methods
To create a supply chain model that fulfills the Company requirements throughout the year, Capacity Solving is used, Capacity planning ensures that the task is divided among available staff members in an efficient manner, which aids in resource optimization. Capacity planning makes sure that the organization can fulfill its deadlines and production targets by matching the workforce with the demand for product publishing. It helps in creating a workflow that optimizes productivity, reduces downtime, and makes good use of available resources. By preventing overstaffing or understaffing, you can control expenses through efficient capacity planning. By offering an organized approach to resource allocation, capacity planning guarantees that the organization has the appropriate number of employees with the required abilities to manage the workload and achieve business goals.
BLUE STAR data:
Determine the overall workload:
Each product will take 20 minutes to photograph.
Retouching Time: 40 minutes for each item.
Publication Time: An extra 10 minutes for each product (modify as necessary).
Total time spent on each product is 20 minutes for photography, 40 minutes for retouching, and 10 minutes for publication on each website.
No of websites = 6
Total time taken to publish on all websites = 60 minutes (each product)
Total time taken to publish the first product = 20+40+60=120minutes
second product = 60 minutes
third product = 60 minutes
Let’s solve the design capacity for the company on excel.
38min
2min
20 mins
Retouching
Cleaning
photography
10min
Publishing
“As per the company the cleaning and retouching can be done by one person:
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Photographer |
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Retoucher |
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Publisher |
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1st hour |
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3 |
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1 |
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0 |
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2nd hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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3rd hour |
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3 |
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1 |
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1 |
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4th hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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5th hour |
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3 |
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1 |
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1 |
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6th hour |
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3 |
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1 |
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1 |
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Total= |
18 |
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8 |
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5 |
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20 minutes left |
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for the retoucher |
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If the company can employee 1 photographer 2 retouchers and 3 pulishers they can publish a total of 15 products a day.
As the company is ready to pay the extra hours to finish the days work, If it can employee the retoucher for more half hour and publisher for more one hour, then the design capacity of the day’s work of the company can be:
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Photographer |
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Retoucher |
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Publisher |
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1st hour |
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3 |
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1 |
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0 |
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2nd hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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3rd hour |
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3 |
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1 |
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1 |
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4th hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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5th hour |
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3 |
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1 |
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1 |
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6th hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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7th hour |
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0 |
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0 |
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1 |
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Total = |
18 |
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9 |
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6 |
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10 minutes left |
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for the retoucher |
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Hence a total of 18 products can be published each day which will be the design capacity of the Company.
But as per ‘Blue Star’ data the number of products published each day = 13
So, the Design capacity = 18
And the company needs a total of 100 jewelry published in a week 100/5 = 20 /day
Solving , Utilization = Actual output/Design capacity
= 13/18 * 100. = 72%
Efficiency = Actual output/Effective capacity
= 13/20 = 65%
Requirements of the Company:
1) If we would like to manage some of the company’s Invoice work for 3hours and delivery work of 1 hour, what timings can it be easily done? And whom should we prefer to give this work?
Ans) As the first working hour of Publisher is ‘0’, the 3 people who do publishing work can do the company Invoices in the beginning of each day for 1 hour each, and packing by retoucher.
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Photographer |
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Retoucher |
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Publisher |
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1st hour |
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3 |
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1(Packing 20min) |
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0 (Invoice work) |
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2nd hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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3rd hour |
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3 |
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1 |
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1 |
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4th hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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5th hour |
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3 |
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1 |
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1 |
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6th hour |
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3 |
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1 |
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1 |
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between time = |
1 |
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7th hour |
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0 |
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0(Packing 40min) |
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1 |
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Total= |
18 |
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9 |
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6 |
2) Number of products needs to be manufactured if we employee 2 photographers and the number of retouchers and pulishers needed to do the previous day continued work with the maximum number of Listings published each day on the websites?
Ans) With two photographers the company can manufacture 18*2 = 36 products each day.
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Photographers (2) |
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Retouchers (4) |
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Pulishers (6) |
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1st hour |
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6 |
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4(Packing 20min) |
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0(Invoice work) |
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2nd hour |
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6 |
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4 |
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6 |
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between time = |
4 |
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3rd hour |
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6 |
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4 |
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6 |
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4th hour |
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6 |
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4 |
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6 |
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between time = |
4 |
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5th hour |
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6 |
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4 |
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6 |
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6th hhour |
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6 |
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4 |
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6 |
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between time = |
4 |
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7th hour |
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0 |
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0(Packing 40min) |
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6 |
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Total= |
36 |
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36 |
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36 |
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No of retouchers needed =3*2 = 6
No of Pulishers needed = 3*3 = 9
But, if the company need to continue the previous days work which was done by the photographer, the retoucher and publisher will not waste the days work and then the maximum listings that can be published will be:
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Photographers (2) |
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Retouchers (4) |
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Pulishers (6) |
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1st hour |
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6 |
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4 |
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4(Invoices) |
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between time = |
4 |
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2nd hour |
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6 |
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4 |
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6 |
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3rd hour |
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6 |
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4 |
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6 |
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between time = |
4 |
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4th hour |
|
6 |
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4 |
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6 |
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5th hour |
|
6 |
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4 |
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6 |
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between time = |
4 |
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6th hour |
|
6 |
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4 |
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6 |
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7th hour |
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6 |
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4 |
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6 |
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Total= |
42 |
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40 |
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36 |
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20min left for each person to do deliveries |
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‘As still 2 products will be left each day, but the company cannot employee 1 more person for the left 2 products, so we assume to hire only one photographer for an extra 7th hour and distribute the remaining work:
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Photographers (2) |
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Retouchers (4) |
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Pulishers (6) |
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1st hour |
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6 |
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3(deliveries) |
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3(Invoices) |
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between time = |
4 |
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2nd hour |
|
6 |
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4 |
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6 |
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3rd hour |
|
6 |
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4 |
|
6 |
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between time = |
4 |
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4th hour |
|
6 |
|
4 |
|
6 |
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5th hour |
|
6 |
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4 |
|
6 |
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between time = |
4 |
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6th hour |
|
6 |
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4 |
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6 |
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7th hour |
|
3 |
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4(Deliveries) |
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6 |
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Total= |
39 |
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39 |
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39 |
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20min left for each person to do deliveries |
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So, the maximum number of listings that can be published by the company if will employee 2 photographers is 39
3) If the company pays 36$/hour to the photographer and 28$/hour to retoucher and 25$/hour to the publisher, what is the least amount it can pay in a week if want to list 150 products on each website the company use?
Ans)
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Photographers (2) |
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Retouchers (3) |
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Pulishers (5) |
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1st hour |
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6 |
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3 |
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Invoices |
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between time = |
3 |
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2nd hour |
|
6 |
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3 |
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5 |
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3rd hour |
|
6 |
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3 |
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5 |
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between time = |
3 |
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4th hour |
|
6 |
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3 |
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5 |
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5th hour |
|
6 |
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3 |
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5 |
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between time = |
3 |
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6th hour |
|
0 |
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3 |
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5 |
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7th hour |
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0 |
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3 |
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5 |
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Total= |
30 |
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30 |
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30 |
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20min left for each person to do deliveries |
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Hence, the minimum amount spent by the company can be:
we employee the photographers for 5 hours in a day, hence the total amount paid will be:
= (5*36) x 2 = 360 dollars
Retouching = (28*6.5) x 3 = 546 dollars
Publishers = (25*7) *5 = 875 dollars
Total = 360+546+875 = 1781 dollars a day*5 = 8905 $ a week
Recommendations
· The company can employee 1 photographer, 2 retouchers and 3 publishers in a ratio scale of 1:2:3, I they want to publish a total of 18 products each day.
· Using capacity planning strategies & methods the company can better understand further calculations in its data-based problems.
· Examine and optimize the process to find places where productivity can be raised. This could entail reducing the amount of time needed for each task by optimizing the processes used in publishing, retouching, or photography. As per the Economic analysis, the most generated revenue items have been categorized for recognition
· Consider the possibility of hiring outside companies or independent contractors to handle specific tasks, like photo editing. This might be a more affordable option, particularly for jobs that don't call for an in-person presence in the office.
· Remember the welfare and spirits of the staff. Increased demands and long work hours can affect job satisfaction. Maintaining a positive work environment, helping, and praising accomplishments are crucial.
Conclusion
In summary, we have identified Blue Star Gems supply chain issues by managing the work between its employees and analyzed BLUE STAR GEMS NY LLC data using capacity planning, Economic analysis, and Excel. The calculated solutions were Sent to
Blue Star Gems and asked for implementation.
REFERENCES
Company name: Blue Star Gems NY LLC
Contact Email: [email protected]
Company website: www.bluestargemstones.com
Address: 1200 avenue of the Americans, Diamond Street, New York.
Company reference websites:
1stDibs - https://www.1stdibs.com/buy/blue-star-gems-ny-llc/
Etsy - https://www.etsy.com/shop/NaturalGemss
JTV – Customer Based
Postmark – Listing Based
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