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Q1.1 Advise Barista (Pty) Ltd on how they can implement the Advance planning system (APS)
in a hypothetical coffee business, from the procurement of raw materials to the production
, of finished products. Give reasons from the case study. 4 marks for theory, 4 marks for
application.
In the quest for better efficiency and overcoming challenges, Barista (Pty) Ltd, a top coffee
supplier in Centurion, South Africa, can greatly benefit from implementing an Advanced
Planning System (APS). This smart approach considers the insights from the textbook
Bowersox, J.C. 2020 which emphasize spatial and temporal considerations in supply chain
planning, and directly references Barista (Pty) Ltd's case study, focusing on its unique coffee
business.
Setting the Scene - The Coffee Business:
Barista (Pty) Ltd, known for its excellent coffee blends and ethically sourced beans, faces
challenges in managing a complex supply chain. The APS comes into play as a key tool to
streamline operations and improve decision-making, aligning with the company's
commitment to quality and diversity in its coffee offerings.
Demand Management:
At the core of this transformation is the demand management module of the APS, which, as
we learn from the case study, helps Barista predict how much coffee they need to make. This
isn't just about numbers; it's about understanding what customers want. With 80 unique
coffee blends and plans to introduce chicory coffee, Barista's APS-driven demand
management ensures they're prepared to meet diverse customer preferences, tackling
challenges related to global suppliers, various currencies, shipping costs, and customs
hurdles.
Resource Management:
Barista (Pty) Ltd can leverage the APS resource management module to keep track of more
than just basic information. The system can store details about each coffee blend's unique
characteristics, roasting needs, and storage requirements. This isn't just about preventing
overproduction; it's about optimizing efficiency in creating their distinct coffee blends. The
APS ensures the manual roasting process aligns with the available raw coffee beans, reducing
waste and boosting overall efficiency.
Crafting the Perfect Brew - Resource Optimization:
The resource optimization module of the APS plays a key role in helping Barista (Pty) Ltd find
the sweet spot between making enough coffee and not having too much or too little. It's like
finding the perfect recipe for each blend. This means the APS helps balance production costs
and keeps inventory levels just right, addressing challenges highlighted in the case study
about producing too much or running out of stock.
Telling the Coffee Story - Resource Allocation:
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