AIWasaet Company Case Study AIWasaet Company (WEC) is a construction company where it is main business is building houses. They work as a construction's contractor for NCM real estate company which selling these houses to their customers. As a contractor for building houses, AEC required three main components for building which are Ready mix (cement), Block and steel. The Ready mix is supplied by either AlKefah Company (AKC), Eman Company (EC), or AlHaidan Company (HDC). However, the ready mix's raw material (cement) for all companies is brought from White Cement Company (WCC) which gets its' raw material (clinker) from Alanwar company (ALC) which buy it from Feda Crusher Plant (FCP). Table 1 shows the products and specification flexibility that produced by AKC and HDC Product Table 1 Products Specification Time between production (made) and use Ready Mix grade 250 5 Hours 250 Fixed (not changeable) (fixed specification) Ready mix grade 350 5 Hours 350 () Block (fixed specification) No limit (infinity) Table 2 shows the risk associated and the value of each product produced by HDC Table 2 Risk and value Delay probability importance 0.01% If not available, the work will stop Ready Mix grade 250 250 Ready mix grade 350 0.012% 350 () Block 15% If not available, the work will stop If not available, the work will stop The work would not be affected if it is not available Safety Barriers 20% Table 3 AEC Demand Weekly Lead time (day) Demand Safety Stock Ready Mix grade 250 200 1200 (m) 5 250 Ready mix grade 350 150 7 350 () Block 2750 (m) 65000 (Blocks) 4 1000 Case Study Questions: 1. Draw the supply chain for Houses (4 marks) 2. What procurement strategy would HDC adopt for Block and Ready-mix grade 350? (what is the justification) (3 marks) 3. What manufacturing strategy would AKC and HDC adopt for Block and Ready-mix grade 250? (what is the justification) (3 marks) 4. What is ROP for Ready Mix grade 350? (3 marks) 5. Block has high risk (delay probability), what should HDC do to mitigate this risk? What is ROP for Block that mitigate the risk? (3 marks) new quantity. what is (4 marks) 6. When the Block quantity reaching ROP, the HDC must order EOQ that AEC will order it, if you know that: Order Cost = 80 S.A.R Block cost = 1.87 S.A.R / unit Annual olding rate=40 /unit.year . . AIWasaet Company Case Study AIWasaet Company (WEC) is a construction company where it is main business is building houses. They work as a construction's contractor for NCM real estate company which selling these houses to their customers. As a contractor for building houses, AEC required three main components for building which are Ready mix (cement), Block and steel. The Ready mix is supplied by either AlKefah Company (AKC), Eman Company (EC), or AlHaidan Company (HDC). However, the ready mix's raw material (cement) for all companies is brought from White Cement Company (WCC) which gets its' raw material (clinker) from Alanwar company (ALC) which buy it from Feda Crusher Plant (FCP). Table 1 shows the products and specification flexibility that produced by AKC and HDC Product Table 1 Products Specification Time between production (made) and use Ready Mix grade 250 5 Hours 250 Fixed (not changeable) (fixed specification) Ready mix grade 350 5 Hours 350 () Block (fixed specification) No limit (infinity) Table 2 shows the risk associated and the value of each product produced by HDC Table 2 Risk and value Delay probability importance 0.01% If not available, the work will stop Ready Mix grade 250 250 Ready mix grade 350 0.012% 350 () Block 15% If not available, the work will stop If not available, the work will stop The work would not be affected if it is not available Safety Barriers 20% Table 3 AEC Demand Weekly Lead time (day) Demand Safety Stock Ready Mix grade 250 200 1200 (m) 5 250 Ready mix grade 350 150 7 350 () Block 2750 (m) 65000 (Blocks) 4 1000 Case Study Questions: 1. Draw the supply chain for Houses (4 marks) 2. What procurement strategy would HDC adopt for Block and Ready-mix grade 350? (what is the justification) (3 marks) 3. What manufacturing strategy would AKC and HDC adopt for Block and Ready-mix grade 250? (what is the justification) (3 marks) 4. What is ROP for Ready Mix grade 350? (3 marks) 5. Block has high risk (delay probability), what should HDC do to mitigate this risk? What is ROP for Block that mitigate the risk? (3 marks) new quantity. what is (4 marks) 6. When the Block quantity reaching ROP, the HDC must order EOQ that AEC will order it, if you know that: Order Cost = 80 S.A.R Block cost = 1.87 S.A.R / unit Annual olding rate=40 /unit.year