Assignment on Ten Operation Management Decisions

Applied on MAHAD Traders and Distributors

Submitted to
Submitted by

Section
Semester

Sir Musawir Shah

Muhammad Usman (53)
Owais Akhtar (68)
Aftab Israr (103)
Faizan Ahmad Tariq (102)
B
6th

Institute of Management Studies University

of Peshawar

MAHAD TRADERS AND DISTRIBUTORS

COMPANY BACKGROUND:
MAHAD traders and distributors first started its operations in 2010. The
company deals in many products including sweet candies chocolates
bubblegum, snakes chips and others confectionaries. It has two main brands
named as mofi and wiggles which also play a competitive role in that
specific area. The company serves more then ten thousands customers
every week.

PROBLEMS IN MAHAD DISTRIBUTIONS:

There many problems in MAHAD distribution some of which are listed below.

Improper product planning:

The company cannot respond quickly in days of high demand due to which
customers go to others i-e: peekfreens, LU etc.

Transportation problems:
The company has no such transportation through which things are delivering
in bulk which increase the delivery time as well as transportation cost.

Supply chain and inventory problems:

The company sometimes makes a wrong forecast of demand due to which
shortage may occur. It may be due to miscalculation of stock.

Product Planning:
Knowing about what customers exactly wants in product though product
planning. Mahad traders and distributions should keep adding new products
to its products chain as the choices of the customers changes and also in
competition peekfreens, LU, kolson etc adding new products according to
customers taste. Similarly the company has to think for seasonal products
they have to add a product which utilize in a season e.g. they should lunch
cold juices or cold drinks along with spicy snacks in summer.

Quality planning
For MAHAD traders and distribution quality is very important. It is because
they are working in an area where there is a lot of competition. Similarly

there is also a food check by food inspectors which may lead to a bad
reputation in case of bad quality. Likewise quality is important because of
their reputation in that market in which they are working from previous five
years.
Now MAHAD trade and distribution can maintain their quality through
different techniques. They may check their products every month their
expiry date, its taste through visiting their godowns etc.

Process and capacity design

Here in case of capacity design MAHAD distributors has to set its capacity so
that they fulfill the demands of customer during the days of its high demand.
In process design they should keep it much simple. They should design their
process so that health, safety issues are taken in considerations.

Location Selection
The MAHAD Traders should select a location where there is a transportation
ease. As big trucks delivered them products secondly they should select a
place which is approachable for the customers and the most important is
selection of a location whose environment conditions temperature etc. does
not rust their products as they have biscuits, cheese snacks etc.

Layout design
The company has many stores and godowns but most of their godowns are
far away from its office which leads in high cost and takes much time. As
when goods are purchased first they need some equipments or
transportation to get it out from it and also labor.
So in order to reduce these cost they should make its layout design much
simpler i-e bring godown near to the office.

Supply Chain Management:

MAHAD distributions have many suppliers who supply them these products.
They may be supplier of biscuits flavors, suppliers who supplies packaging
etc. so to keep their products from being rusting and on time delivery they
need a good relationship with their suppliers. Also they have to pass on one
of its chain i.e. May distributor to reduce cost.

Inventory Management:
There are different ways inn managing inventory, it may first in-first out or
last-in-last out. But I think they should follow first-in-first out because many
of the goods have its expiry dates and may rusted.

HR Requirements in job design:

MAHAD traders need skilled employees which they do not have. Even its
owner does not have special skill. Secondly they even dont know about their
duties.

Scheduling:
MAHAD traders are 12-hours business but they do not have some specific
time to open or close office. Secondly they have 12/7 which creates
misunderstanding for customer.