However, this would attract large capital investments and total relocation which are not feasible at the present juncture.
A centralized Storing & Warehousing Department could solve the problem. Under this system, the customer could provide his material requirements electronically through computer to the vendors. All his material supplies could be processed electronically in a central system and requisitions placed to different units that stock these items. All the requisitioned items could then be sent across to a central point used as material collection centre. The buyer needs to collect all his needed materials from this central point. This way, a complete electronic track is kept of all receipts and dispatch of goods to/from different units, however, geographically dispersed they may be. While exerting excellent control over goods, it also serves to reduce the efforts of customers who would otherwise need to move from unit to unit to collect their goods.
The arrival pattern of trucks leads to traffic congestion and contributes to gridlock within the unit. This could be seen as an offshoot of the problem mentioned earlier. It is suggested that separate timings and controls are maintained for delivery trucks visiting the unit. These would be parked in areas which are not within normal business parking zones, thus the normal production etc would not be affected by vendors, or delivery activities. Moreover, the use of a centralized warehousing would relieve the congestion in peripheral stores and depots, and exercise more efficient control mechanism.
There are concerns about Manufacturing Unit at Pacific Northwest (PN) with regard to rising production costs, higher carrying costs, late deliveries, increasing incidence of scrap and lower product quality standards that need to be urgently addressed to. In all