Optimizing Inventory and Order Placement in Food Manufacturing

This assignment delves into the strategic aspects of supply chain management at SINGAPORE FOOD DELIGHT MANUFACTURING LIMITED, exploring how advanced techniques like EOQ, FOT, and FOP can enhance inventory efficiency. The goal is to critically analyze current practices, identify gaps, and propose data-driven improvements that align with global best practices in logistic management. By examining case studies and applying theoretical frameworks such as supply chain sustainability and strategic management, students will develop a comprehensive understanding of effective inventory control measures. This involves integrating insights from various academic resources to formulate actionable recommendations for the company.

Running Head: Logistic Management
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Principles of logistic management

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Executive Summary:
This report has been prepared to analyze the affect of logistic management in a
company. For this report, SINGAPORE FOOD DELIGHT MANUFACTURING PTE
LIMITED has been taken into consideration. This company mainly produces the food
products in the Singapore market. This organization mainly manufactures the hawker food
products and items. The food of the company is liked by every people of Singapore and even
by the tourist. This organization gives the combination conventional nourishments to its
clients. SINGAPORE FOOD DELIGHT MANUFACTURING PTE LIMITED is a food
manufacturing company in the Singapore and this company is managing the entire activities
in a better way due to the better techniques and tools of logistic management. Through it, it
has been found that some changes are required in the company which could assist the
company to enhance the performance more.

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Contents
Introduction.......................................................................................................................3
The interfaces....................................................................................................................3
Production.....................................................................................................................4
Marketing......................................................................................................................5
Accounts and finance....................................................................................................6
Order Cycle of company...................................................................................................6
Steps of order cycle......................................................................................................7
KPI................................................................................................................................7
Recommendation for the order cycle:...........................................................................8
Inventory Management.............................................................................................8
Just in Time Approach..............................................................................................8
Order Processing.......................................................................................................8
Customer Service......................................................................................................8
Transportation...........................................................................................................9
Inventory Management.....................................................................................................9
Recommendations for improvements:..........................................................................9
Conclusion......................................................................................................................10
References.......................................................................................................................11

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Introduction:
SINGAPORE FOOD DELIGHT MANUFACTURING PTE LIMITED organization
is a production / manufacturing organization in the market of Singapore. This organization
produces the hawker food items for the people of Singapore and the tourist of Singapore. This
organization gives the combination conventional nourishments to its clients. Mostly, this
organization sets balance into the different components of the nourishment to make the
sustenance more heavenly. HACCP has examined the organization as per different norms and
offered the HACCP authentication to the organization (Chopra & Meindl, 2013). This
organization makes the solidified plate of mixed greens, solidified vacuum nourishment,
prepared to eat sustenance and so forth this item could be steam or microwave by the clients
as indicated by their decision (Christopher, 2016). The bundling of the item is done in such a
way, to the point that the items could be crisp and legitimate constantly.
The key components of the organization are the best taste of the item and assortment
of the items. This organization has embraced different new systems to cook the sustenance to
make the nourishment crisp for quite a while and arranged prepared to eat solid sustenance.
This organization has upgraded its income on a gigantic level as the sustenance is enjoyed by
each client of the organization and they are the faithful and consistent client of the
organization. Essentially, this organization sets harmony into the different components of the
nourishment to make the sustenance tastier (Cetinkaya, 2011). HACCP has examined the
organization as indicated by different gauges and offered the HACCP testament to the
organization. Different guarantees have been finished by the organization to its clients in
regards to the item quality and the new activity into the sustenance offered by the
organization.
Further, this organization has gotten some information about their decision with the
goal that organization could deliver that merchandise and subsequently their preferred best
quality result could be offered to them. Through the examinations, it has been discovered that
the organization is performing great regarding benefit and execution in the organization.
The interfaces:
Interfaces relayed to the logistic department are documented as a progression in which
the products, policies, techniques etc are communicated in the company by a department to
another for managing the logistics activities of the company. It is supportive for the firm to

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administer the level of inventory, diminish the cost, improve the sales etc. The SINGAPORE
FOOD DELIGHT MANUFACTURING PTE LIMITED’s logistic interface has been
investigated in this report. Interface of this company plasters all the aspects of the different
departments of a firm.
Production:
Production division is identified with changing over the simple material into the
completed products. The strategic helps the Production division at different stages which
begins from discoveries the better raw materials to exchanging the completed merchandise
into the business office (Beske and Seuring, 2014). Different advances happen in this
procedure, for example, conveying the crude material, warehousing the material, protection
of the item, exchanging the completed merchandise and so on are the exercises of the
generation division which are straightforwardly identified with the strategic bureau of the
organization.
Through directing an investigation over the Production arrangement of the
organization, it has been broke down that the generation of the organization is of long run.
Long run Production delineate that the organization has enough time to roll out the
improvements into all the related angles. In this examination, it has been discovered that the
cost of the organization could be overseen by the organization as different circumstances is
hold by the generation division in which changes should be possible to decrease the sum
though if the length of the creation was short than there were no odds for the organization to
deal with the elements and lessen the additional cost of the organization. Organization has
embraced the systems and hypotheses of EOQ, FOT and Dude to deal with every one of the
exercises bitterly.
Logistic and production department of SINGAPORE FOOD
DELIGHT MANUFACTURING PTE LIMITED relationship:

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(Assey, 2012)
Marketing:
Normally, in marketing logistics, 3 activities are there which exists that is planning
about the product, delivering the product and making a control on products which has been
produced by a firm and transferred into the ending inventory. The main focus of this
company is to offer the best quality product to its customers with a guaranteed price. The
main concept tof marketing depict that marketing process starts from identifying the demands
of the customers to the point when customers offers a good feedback about the services or the
product. In SINGAPORE FOOD DELIGHT MANUFACTURING PTE LIMITED’s, basic
needs of the customers are identified and according to that, the production of the company is
done. The mission and vision of the company also depict about the better marketing
management of the company.
Marketing interfaces are related to various marketing concept like re-labeling,
traditionalist, intersections and unionist. The perspective of relabeling in the concern of
marketing depict that the marketing activities have a wider part in the logistics to manage the
performance of the company (Toomey, 2012). Eventually, the unionist perspective describes
that the marketing and logistic department are interlinked and work accordingly and lastly,
the perspective of intersection depict that the marketing activities cut down the logistic
activities in an organization.

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(MIHM, 2010)
Accounts and finance:
Accounts and finance department of a company is also linked with the logistic
department of a company. Both of these accounts communicated about the total expenses and
the revenue due to a better logistic activity. Accounts and finance department basically
describe about the total profit earned by a company. Being a logistic manager in
SINGAPORE FOOD DELIGHT MANUFACTURING PTE LIMITED, the interface of
accounts and finance department has been analyzed and it has been found that the logistic
department helped the company to reduce the cost a huge level through adopting new
technology and the strategy. Further, the company is also focusing to make some changes
into it to make the performance of the company better (Lysons and Farrington, 2012).
Order Cycle of company:
A company is required to manage the time of production and entire activities related
to it, in such a manner that the extra cost of the company could be cut down and the time
consumption of the company could also be reduced. According to this study, the order cycle
is the time which is taken from placing an order to the transforming that order into the WIP

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and finished goods. A company is always required to look over various activities and
according to that place an order so that the consumption of cost and time, both could be
reduced by the company (Hussey, 2007). Following the the procedure of order cycle is
followed by the company to reduce the level of cost as well as the time.
Steps of order cycle:
a. Order placement:
This is the first step in which company places an order.
b. Getting the order:
This is the second step in which company receives the order which has been placed in
first step.
c. Identify various level of inventory:
This is the third step in which company evaluates the balanced inventory into the
warehouse and evaluate the minimum required inventory.
d. Next order placement:
This is the last step in which places a new order according to the minimum level of
inventory evaluated in the third step.
Getting the
order
Identify the
various level of the
inventory
Order Placement
Next order
placement

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KPI:
KPI is Key performance indicators. The study of KPI has been done over
SINGAPORE FOOD DELIGHT MANUFACTURING PTE LIMITED. Through the
evaluation and identification, it has been found that the better order cycle is adopted by the
company and the techniques and tools used by the company for managing the extra cost and
time is also competitive and offering the better result to the company. The main KPIs are the
products, strategies, services etc of the company which make the business of the company
different from its competitors and in this company, the food quality, food taste, better
management of activities, customer satisfaction etc are the KPIs (Hussey, 2007). In concern
of logistic management, the main KPIs of the company are better interfaces among various
department, better management of the inventory and various tools and techniques.
Recommendation for the order cycle:
The above study depict that the company is performing better in the market. But still
for becoming the best company, following improvement has been explained to the company
which is as follows:
Inventory Management:
The management of the inventory could be improved by the company through
applying the various new evaluation techniques such FOT, FOP etc.
Just in Time Approach:
Company could use the technique of Just in time to manage the total time required for
the production process of the company. This process assist the company to manage the cost
as well as the time and through it the customer service of the company could also be
enhanced. The JIT theory could help the company to cover all the activities (Ou et al, 2010).
Order Processing:
Order processing process of a company helps the company to track over the order,
control on order and management of the activities. This company is also suggested to adopt a
strategy to manage a better order processing system (Mihm, 210).
Customer Service:

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Customers are the king of the market. So it is required for the company to manage the
loyalty and satisfaction of the customers so that the revenue of the company could be
improved and the market base could also be enhanced.
Transportation:
Lastly, the company is required to manage the process of transportation in such a
manner that the procedure of transportation could be improved (Sweeney, 2013).
Inventory Management:
Inventory management is a method to identify the level of the stock of the organization
so that the level of the company of inventory could be administered in an efficient way to
manage and enhance the profit level of the organization and reduce the cost level. The tools
and techniques of inventory management depict the organization about the inventory level in
the warehouse to meet complete demands of end buyer on time and eventually, the
production necessity of the organization must also been identified. Effective management
scheme of an organization is a KPI for an organization as it allows the organization to handle
and cut the time and cost and improve the goodwill of the company in market (Tomey, 2010).
The company, SINGAPORE FOOD DELIGHT MANUFACTURING PTE LIMITED
is measuring the stock level with the help of various manners to identify and direct the
inventory level. Inventory management is quite proficient and effective of this company as it
considers the full care of the interfaces and the logistics management. It becomes quite
difficult for a manufacturing company to evaluate the best level of inventory. Still, various
strategies, tools, techniques, methods are available for the logistic manager to identify the
level of the inventory and through which the inventory could be managed in a better way
(Arndt, 2008). According to the study, it has been found that the level of inventory
management of the company became so far so good.
Recommendations for improvements:
The above study depict that the company is performing better in the market. But still
for becoming the best company, following improvement has been explained to the company
which is as follows:
Though the performance of the company is better but EOQ, FOT, FOP etc technique
could help the company to manage the level of inventory in an effective and efficient manner.

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Through the study it has been found that the main point of managing the ibventory is the
evaluate the right level of the stock which must be in the warehouse at all the time, according
to the operations and activities of the company, the company is required to manage the LIFO
system so that the loss of inventory of the company could be reduced and further, the
company is required to look over the other players strategies and make a policy according to
that so that the assistance could be got.
Conclusion:
To conclude, SINGAPORE FOOD DELIGHT MANUFACTURING LIMITEDis a
food manufacturing company in the Singapore and this company is managing the entire
activities in a better way due to the better techniques and tools of logistic management.
Through it, it has been found that some changes are required in the company which could
assist the company to enhance the performance more.

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References:
Arndt , H., (2008), Supply Chain Management, Germany: Gabler Verlag
Assey, J.J.M. (2012). A New Introduction to Supply Chains and Supply Chain Management:
Definitions and Theories Perspective, Journal of Business and Economic. 5 (1). pp.
194-207
Beske, P. and Seuring, S. (2014). Putting sustainability into supply chain management,
Supply Chain Management: An International Journal. 19 (3). pp. 324-333.
Cetinkaya, B. (2011). Sustainable Supply Chain Management: Practical Ideas for Moving
Towards Best Practice. Springer Science & Business Media
Chopra, S. & Meindl, P. (2013). Supply Chain Management: Strategy, Planning, and
Operation (5th ed.). US: Pearson, Global Edition
Hussey, D.E., (2007), Strategic Management: From Theory to Implementation, UK: Taylor
& Francis
Lysons, K. and Farrington, B. (2012), Purchasing and supply chain management, Harlow,
Essex: Pearson Financial Times
Mihm, (2010), Fast Fashion in a Flat World: Global Sourcing Strategies. International
Business & Economics Research Journal, 9 (6) pp 55-63
Mihm, (2010), Fast Fashion in a Flat World: Global Sourcing Strategies. International
Business & Economics Research Journal, 9 (6) pp 55-63
Ou, C.S., Liu, F.C., Hung, Y.C., Yen, D.C. (2010). A structural model of supply chain
management on firm performance, International Journal of Operations & Production
Management. 30 (5). pp. 526-545
Sweeney, E (2013). The people dimension in logistics and supply chain management – its
role and importance, Supply Chain Management: Perspectives. Issues and Cases.
McGraw-Hill: Milan, pp. 73-82.
Toomey, J., (2012), Inventory Management: Principles, Concepts and Techniques, Germany:
Springer Science & Business Media