OMGT228-001
Chocolate Bar Supply Chain Assignment
Submitted by
Trong Tue Nguyen – 300960272
Tran Ngoc Ha Thanh – 300933951
Date May 31, 2018
1) What are some challenges that this supply chain faces? Discuss a minimum of two challenges and propose a solution for each.
a) Challenges
- Sugar cane grows best in tropical or subtropical areas within a half of the year, but in this case the demand for sugar is the whole year. There is a challenge that sugar cane suppliers must keep up with the demand that make sure the supply for sugar in the whole year.
- The store of milk is the second challenge worth taking into account. They mention that milk can be stored in the refrigerated vats for no longer than 48 hours. How to make sure that the delivery of milk to the chocolate factory can guarantee the quality of the milk in the long distance while the chocolate factory not only gets the milk in Tasmania and Victoria, it also get milk from other places such as Brisbane, Caims, Perth… that is quite far away in comparison to Tasmania and Victoria.
- The process of harvest Cocoa and spitting the Cocoa powder are quite complicated and require many steps that can result in the difficulty in supply chain management. More than that, Cocoa is imported from many sources that lead to the expensive transportation cost.
b) Solutions
- For the milk, instead of using milk suppliers in other provinces that are too far from Tasmania such as Caims, Perth, and Brisbane, chocolate factory should only get it from Victoria – Melbourne and within Tasmania. It not only helps cut the transportation cost, but also guarantees the quality of the milk that is delivered to the factory no more than 2 days.
- They should cut a few of suppliers of Cocoa to make sure reducing the transportation cost to minimum as they can.
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