Eliminating Backorder Issues in Chemical Manufacturing: A SCM Report

This report addresses significant backorder issues in a chemical manufacturing plant supplying the pharmaceutical sector. It identifies key strategies to eliminate backorders, focusing on real-time data for stock levels and item velocity, predictive systems, and automated action triggers. The report emphasizes the importance of updating order channels, having backup plans, deciding whether to offer backorders, informing customers, and maintaining accurate records. It highlights the need for the plant to manage consumer demand and update stock efficiently. The analysis concludes that effective inventory management and communication are crucial for resolving backorder problems and maintaining customer satisfaction. Desklib provides access to similar solved assignments and study resources.

Supply Chain
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Strategies to eliminate backorder issues.....................................................................................3
Prepare and explain your solution ..............................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Supply chain management is termed as the direction and preparation of the flowing of
products and facilities among management and their manner of place. It will also involve the
basic set of the manner of the occurrence and retention of products and the manner of the work
process of inventory. It will also involve the finished products and also the end-to-end sections in
respect to satisfying sections from point of developing source to point of the utilization of
products (Banerjee, Lücker, and Ries, 2021). The following report involves the manufacturing
plant that will create chemicals for the pharmaceutical section that has been suffering from
important backorder problems for the last 6 months. The manner of the situation has now
reached a critical stage as effectively and efficiently.
TASK
Strategies to eliminate backorder issues
Backorder issues - A backorder is termed as an order for the products and facilities that might
not be get acquired at the present set of the period due to a deficiency of accessible supply. The
products that might not be kept in the business's accessible stock but might still be in production
or the business that might require to still produce high term of the goods.
 Get Real-Time Data on Your Stock Levels - The basic section will be termed as the
manner for neglecting backorder issues of conditions for getting the orientated place to
adequately path of stocks in the real-time as possible. By evaluating the sections of the
warehouse stock sector with the modern field of techniques like scanner practices,
forgetting the real-time data in the business to ignore stock and backorder problems
(Belhadi, and et.al., 2021). As there are not several sections in terms of the out of the
products and their manner to maintain the fact.
 Get Real-Time Data on Item Velocity - It is generally not an adequate term to know the
manner of the stock sections in the storage warehouse that have to understand that how
rapidly products are oncoming also. It is a portion of the stock list that requires
anticipation. According to the pharmaceutical section, they might know the value of the
actual turnover stock of the products and the

might have less than 25% of your original stock of an item, but if that item is moving slowly,
you might not have to reorder for some time. Conversely, a fast-moving item might need to be
ordered while you still have many items in your warehouse inventory to prevent a backorder
situation. Thus, velocity matters more than absolute levels.
 Have the System Make Predictions – It will be termed as the basic set of the manner
that will phrase the orientation in the business when the inventory in the section of the
warehouse will reach the constituent as where there is the rough section of a base remains
and the range is mechanical starts initiation (Li, and et.al., 2021). The fresh and unique
set of the products that might hold in the period neglect the sections for getting to orders
as a backorder.
 Create a System that Triggers Appropriate Actions – By understanding the manner
for keep activating the single manners to operate the products that are out of stock and
which have not enough manner of sections. They are maintaining a suitable course with
applicable sectors with an adequate field of reactions. It presents the basic role of the
purchase order from the seller or an inner activity of order. They get created on a fixed
period acquiring the legal sections and the power of the quality and put-away as also. The
activities that might also cause if products are not acceptable in the expectable period.
 Keep All Order Channels Updated – By keeping every product and service of stocks are
updated it will deal with another form of the sectional field of targets as effectively and
efficiently in the business of management. The major section of the procedure might get
automatic if the business has the suitable magnitude transmission integrates with it as
effectively and efficiently.
 Have a Back-Up Plan – The business of management should have a sort of backup plan
through which they can deal with several sets of problems and issues in the business
(Rejeb, and et.al., 2021). They also deal with several orientated fields of the targets that
are to be get fulfilled through their managerial functions and operations in the business of
management.

Prepare and explain your solution
 Decide whether to offer backorder – It will refer to an applicable manner of the goods
that are coming as possible back in stock as effectively and efficiently (Soetjipto, and
et.al., 2021). They might have the basic set of the stocks on their orientated field of the
manner to fulfill backorder in the business of management.
 Inform customers – The business of management should inform their consumers at the
time of their new arrival of the products and services for their consumers.
 Keep records – The business of management should maintain their proper records
through which they will not face any problems and issues in the future regarding their
stock as effectively.
 Keep everyone updated – The business management of the pharmaceutical section
should deal with various tasks and challenges while following them in a suitable course
of manner. They have to ensure their consumers are maintaining their orientated fields of
the targets as effectively and efficiently in the business.
As it has been shown that, the highest backorder value of consumer B is 1000000 and on the
other side the lowest backorder value of consumer D is 6000. It will define that the
manufacturing plant that will create chemicals for the pharmaceutical section that has been
suffering from important backorder problems, due to this the quality manager has confronted the
issues through which they might be get overcome soon. As on the other hand, the sales manager
has highlighted the global manner of pressure that are maximising through consumer demand.
They should apply an updated stock by which which consumers demands get satisfied on time.
CONCLUSION
From the above-mentioned report, it has been concluded that Backorder might be the
major set f the term that will relate to the standard sections by which sellers having a lot of
demands of the goods and products in the business of management. As in the manner of the case,
the basic section of the inventory is to be maintain by the field and the consumers might
generally have the key term of the inventory of stocks again as effectively and efficiently.

REFERENCES
Books and Journals
Banerjee, A., Lücker, F. and Ries, J.M., 2021. An empirical analysis of suppliers' trade-off
behavior in adopting digital supply chain financing solutions. International Journal of
Operations & Production Management.
Belhadi, A., and et.al., 2021. Manufacturing and service supply chain resilience to the COVID-
19 outbreak: Lessons learned from the automobile and airline industries. Technological
Forecasting and Social Change, 163, p.120447.
Li, Y., and et.al., 2021. Research on the Construction of Supply Chain Management for
Undergraduate Programs at Chinese Applied Universities. Discrete Dynamics in Nature
and Society, 2021.
Rejeb, A., and et.al., 2021. Integrating the Internet of Things in the halal food supply chain: A
systematic literature review and research agenda. Internet of Things, p.100361.
Soetjipto, N., and et.al., 2021. Implementation of enterprise human resources management
standards to achieve supply chain excellence in fertilizer companies in
Indonesia. Uncertain Supply Chain Management, 9(1), pp.107-114.