SUPPLY CHAIN MANAGEMENT ON SUBWAY

:
Impact of New plan Environmental framework
Risk Register
Existing plan New improved plan

Risk Category of Probability Impact Risk Risk Contingenc Mitigating Time

Description risk score Owner y Plan strategy

Supplier management Time taken in negotiation is Cutting down the time by 30

Higher than it is for 2 months. days by installing automated
Technolog technologi High High 1 IT dept. Using the Identifying 3 months. Communication Technology.
y failures cal most the issues
developed involved in
technology technologi
. cal failure. Packaging process The packaging process The current plan includes
involves fresh materials and is recycled packaging.
costly.

Usage of fuels Expensive and adverse Enforcing usage of highly

Infrastruct operationa High High 3 Managem developing negotiatin 1 month impact on the environment optimized and efficient fuel
ure risk l ent dept. the g with due to obsolete vehicles. vehicles, incorporating hybrid
infrastruct negotiatin vehicles.
ure for g with the
smooth suppliers
supply. timely. Usage of transportation Inland, Road, and Air mode Preferred Air mode
mode

Sensitivity analysis

Cost benefit analysis Chart Title

5
in
New improved plan millionUSD Existing plan in millionUSD 4.75
4.25
Cost benifiet analysis Cost benifiet analysis
3.75
3
3.25
Transportation Cost 2.5 Transportation Cost 3.2
2.75
Inventory Holding Costs 0.8 Inventory Holding Costs 1.3 2 2
Packaging Cost 1.9 Packaging Cost 1.01 2.25
Transportation Infrastructure 1.75
Costs 1 Transportation Infrastructure Costs 1 1.25
Total cost 6.2 Total cost 5.5
0.75
0.25
benifiets benifiets Category 1 Category 2 Category 3 Category 4
Series 1 4.3 2.5 3.5 4.5
Reduced lead time by 10 % saves 1.3 Reduced lead time by 5 % saves 0.65 Series 2 2.4 4.4 1.8 2.8
Improved Customer Service: 3.3 Improved Customer Service: 2.2 Series 3 2 2 3 5

Cost Savings Through Efficiency 1.89 Cost Savings Through Efficiency 1.89 Series 1 Series 2 Series 3

. Environmental Benefit 0.6 . Environmental Benefit 0.6

Total benifiet 7.09 Total benifiet 5.34

Net Benefit 0.89 Net Benefit -0.16

Conclusion :
the main advantage of this new supply chain plan is IOT and GPS tracked
vehicles and also eliminated the third part intrusions which was a great
problem in existing supply chain and some frame work of evaluating project
risk using risk matrix which will help the company to deal with long –term
defects.