A systems study on the operations division of Manila Stellar Food Traders, Inc.

• Main Authors: Bosque, Marielle Denise S., Manalo, Pamela Leeset M., Tanquintic, Louise Anne R.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Manila Stellar Food Traders Inc.; San Miguel Foods, Inc.; Retail trade > Ownership; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11128
• Institution: De La Salle University

Manila Stellar Food Traders Inc. (MSFTI) is solely owned by Mr. Antonio Esparaz who is also owner, president/CEO. MSFTI is a retailer and distributor of San Miguel Foods, Inc., which started back in 2007 with Mr. Antonio Esparaz as its owner and president/CEO. The Sales/ Logistics department is the system under study. The group constructed a Fish Bone Diagram to determine the company most protruding problem which is the occurrence of non-refundable bad orders in the warehouse. As identified, bad orders caused by infestation (rat bites), damaged goods, hardened powder, and expired goods. Because of this, the company incurs an actual loss of Php 1,442,050, annually. After the evaluation of the possible causes for the problem, a Pareto Analysis was performed to identify the factors which greatly contribute to the occurrence of bad orders. These factors are the following: expired goods due to overstocking, expired goods due to slow moving items, and infestation due to rat bites. With the use of Kepner-Tregoe Decision Analysis, solutions were determined as it would significantly reduce the amount of bad orders incurred by the company. There are two solutions proposed to address the problem on poor ordering system and slow moving items and also infestation, these are: (1) Ordering policy redesign (using ABC Analysis and Min-Max Replenishment Rule) (2) Strict implementation of 5S. The proposed system was comprised of two different solutions from two main causes expired goods (due to poor ordering system and slow moving items) and infestation. Alternative solutions for the expired goods involve redesigning the ordering system and setting sales quota for the salesmen while strictly implementing 5S in the warehouse to deal with infestation. The computed net benefit of the proposed solution is Php 349,569.48. On the other hand, the computed NPV value yields a positive value, Php 659,671.66, which proves that the proposed solutions for the main problem are feasible to implement. The payback period for the investment on these solutions is within one year. In terms of the implementation period, the constructed Gantt chart illustrates that it would take approximately 8 weeks for the solutions to be applied in the company.