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Abstract

This is part of a case series. Sanghvi Mehta the VP-Operations of PCIPL is concerned about the frequent overstocking and understocking of HDPE pipe cutter machines at different customer cities leading to potential erosion of market share especially post 2011 scenario. He hires Ritu Khanna as a management intern to look into this problem and provide recommendations so that the product is appropriately delivered to the customer cities at the minimum transportation cost.After having gathered few relevant information from various departments Ritu develops a transhipment model to complete her analysis and provide recommendations in terms of shipping quantities between different nodes of the supply chain of PCIPL to the top management. In the quarterly review meeting attended by the CEO, COO and the VP-Operations of PCIPL, Ritu was provided with additional inputs that she could include in her analysis. These inputs were related to the production capacities, fixed cost of operating facilities and companies plans to focus more on the production of HDPE pipe cutter and possible shutting down of its copper pipe cutter line.
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Abstract

This is part of a case series. Sanghvi Mehta the VP-Operations of PCIPL is concerned about the frequent overstocking and understocking of HDPE pipe cutter machines at different customer cities leading to potential erosion of market share especially post 2011 scenario. He hires Ritu Khanna as a management intern to look into this problem and provide recommendations so that the product is appropriately delivered to the customer cities at the minimum transportation cost.After having gathered few relevant information from various departments Ritu develops a transhipment model to complete her analysis and provide recommendations in terms of shipping quantities between different nodes of the supply chain of PCIPL to the top management. In the quarterly review meeting attended by the CEO, COO and the VP-Operations of PCIPL, Ritu was provided with additional inputs that she could include in her analysis. These inputs were related to the production capacities, fixed cost of operating facilities and companies plans to focus more on the production of HDPE pipe cutter and possible shutting down of its copper pipe cutter line.

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