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NO plastic please...

NO plastic please...

Wednesday, March 5, 2008

Solution Model

We suggest the concept of matching production to demand. Hup Seng can estimate their biscuits demand before produce. After have the required quantity in days for example, Hup Seng can deliver their products to each sundry shop, medical hall that their needed. But the daily production rate would be much faster than the demand rate so it is better in carrying inventory most of the week. If, the production was spread out over the week, it would more closely match with the demand rate.
If Hup Seng can deliver their biscuits in every day or week, Hup Seng can package their biscuits in a small aluminum tin and sell it to customers. Besides, they can encourage their customers after finished the biscuits they can take back the aluminum tin and refill it at any sundry shops or wholesalers. Hup Seng then can package their biscuits in a bigger aluminum tin which wants to deliver to each sundry shop so that Hup Seng’s customers can refill biscuits at any sundry shops or wholesalers any time.
By using this method, Hup Seng needs not to package their product in plastic. But it need well cooperation with Hup Seng’s sales networks and customers. It is because Hup Seng has to put the biscuits aluminum tin at sundry shops and refill or deliver the biscuits every day or week in order to make sure the biscuits are enough to provide to customers at the sundry shop. Besides, it needs every customer cooperative to reuse the aluminum tin.

In overall, we suggest Hup Seng use the combination of Kanban system and frequent deliveries method in order to match zero plastic packaging.

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