Operations Research 235414

OPERATIONS RESEARCH SUBMITTED TO, MAHMUDUL HASAN FOUJI ASSISTANT PROFESSOR DEPT. OF MARKETING JAGANNATH UNIVERSITY

A REPORT ON CONTEMPORARY OPERATIONS RESEARCH PRACTICES IN BANGLADESH

SUBMITTED BY; GROUP: PHOENIX 3rd 2nd SEMESTER 6th BATCH DEPT. OF MARKETING JAGANNATH UNIVERSITY

Group Name: PHOENIX Sl No 1

Name

ID Number

Mobile

Email

Md. Fahad Al Mamun

016852949 75

[email protected] om

2

SaifuddinZubair

016837621 33

[email protected]

3

ShahedurRahman Emon

016811961 60

[email protected] m

4

NafeesKa

019119491 64

nafees.kausar404@gmail. com

5

KhandakarArifHos sain

016749042 02

[email protected]

6

Nilakshmi Das

016823969 54

[email protected]

7

IkramurRahman

016760286 20

[email protected]

8

Fida Al Hasan

016755468 84

[email protected]

9

DebasisBasu

016753024 54

[email protected] m

10

ImtiazHossain

B11020401 3 B11020401 4 B11020402 6 B11020403 7 B11020403 8 B11020405 8 B11020406 2 B11020407 8 B11020409 5 B- 115482

016726022 11

[email protected]

Executive summary This report is a critical analysis of the various contemporary practices in the perspective of Bangladesh. This report was prepared through conducting an interview with the Deputy General Manager of Matador Mr. Tanvir Ahmed and the gatheredinformation were used in collaboration of the relevant aspect with the legal permission of the related authority. This report discusses the various implication of supply chain management and inventory management that are relevant to the operation management practice in Bangladesh. It also contains illustrative presentation of operation management practices of Matador. The findings of the report indicates that matador has a state of the art supply chain management and inventory management implications that makes the organization to sustain in the competitive market and be the market leader in the market. Some limitations ad their probable solution hasalso been prescribed in the report. The findings also shows that the supply chain management and inventory management of Matador is efficient enough to ensure profitability and flexibility.

Table of Contents Introduction:.......................................................................................................................3 1. An Overview of Operations Research...........................................................................4 2. Mainstream of Operations Research Application..........................................................5 3. Why Operations Research is important for the Organizations?....................................7 4. Constraints and opportunities of Operations research in Bangladesh..........................8 Opportunities of operation research in Bangladesh.......................................................8 Constraints of operation research in Bangladesh..........................................................9 5. Styles of Inventory Management in Operation Research Practices..............................9 6. Methods and Vital issues of Supply Chain Management............................................12 7. A brief about the Matador Ball Pen Industries Bangladesh.........................................15 8. Practices of relevant inventory style in case of Matador Ball Pen Industry.................16 Practices of relevant inventory style in case of Matador..............................................16 9. Supply Chain Practices of Matador Ball Pen Industry.................................................19 10. Limitation and constraints faced by the Matador Ball pen Industry...........................24 11. Recommendation for Matador Ball pen Industry to eradicate the constraints..........24 12. Conclusion.................................................................................................................25 13. Reference..................................................................................................................26 14. Appendix:...................................................................................................................27

Introduction: This report is the assessment of contemporary operation management practices in the perspective of Bangladesh. The report choose the market leader in the Ball pen industry of Bangladesh, Matador Group and analyzed the entire aspect of operation management. This report contains comprehensive elaboration of the two major aspects, supply chain management and inventory management practices that can be linked with the operation management practices in Matador. Through evaluation of the essential elements of the inventory an supply chain management of matador it indicates some limitations and enlightens with some proper recommendation that can enhance the credibility of Matador and ensure finest potential in future prospect.

1. An Overview of Operations Research. Operations research, or operational research in British usage, is a discipline that deals with the application of advanced analytical methods to help make better decisions. It is often considered to be a sub-field of mathematics.The management science and decision science are sometimes used as synonyms. Employing techniques from other mathematical sciences, such as mathematical modeling, statistical analysis, and mathematical optimization, operations research arrives at optimal or near-optimal solutions to complex decision-making problems. Because of its emphasis on human-technology interaction and because of its focus on practical applications, operations research has overlap with other disciplines, notably industrial engineering and operations management, and draws on psychology and organization science. Operations research is often concerned with determining the maximum (of profit, performance, or yield) or minimum (of loss, risk, or cost) of some real-world objective. Originating in military efforts before World War II, its techniques have grown to concern problems in a variety of industries (Winston 2007 pp. 277).

Operational research (OR) encomes a wide range of problem-solving techniques and methods applied in the pursuit of improved decision-making and efficiency, such assimilation, mathematical optimization, queuing theory and other stochastirocess models, The major sub disciplines in modern operational research, as identified by the journal Operations Research (Taylor 2000), are: 

Computing and information technologies

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Financial engineering

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Manufacturing, service sciences, and supply chain management

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Marketing Engineering

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Policy modeling and public sector work

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Revenue management

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Simulation

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Stochastic models

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Transportation

2. Mainstream of Operations Research Application. The mainstream operation management practices that are applicable in case of the general industries of Bangladesh they are described in the following. These are the basic application of various implication of operation management practices within an organization. Linear programming

Linear programming (LP) refers to a family of mathematical optimization techniques that have proved effective in solving resource allocation problems, particularly those found in industrial production systems. Linear programming methods are algebraic techniques based on a series of equations or inequalities that limit a problem and are used to optimize a mathematical expression called an objective function. The objective function and the constraints placed upon the problem must be deterministic and able to be expressed in linear form (Mahadevan 1995). Inventory control

Inventories include raw materials, component parts, work in process, finished goods, packing and packaging materials, and general supplies. The control of inventories, vital to the financial strength of a firm, in general involves deciding at what points in the production system stocks shall be held and what their form and size are to be. As some unit costs increase with inventory size—including storage, obsolescence, deterioration, insurance, investment—and other unit costs decrease with inventory size—including setup or preparation costs, delays because of shortages, and so forth—a good part of inventory management consists of determining optimal purchase or production lot sizes and base stock levels that will balance the opposing cost influences (Kapoor 2001). Replacement and maintenance

Replacement problems involve items that degenerate with use or with the age of time and those that fail after a certain amount of use or time. Items that deteriorate are likely to be large and costly (e.g., machine tools, trucks, ships, and home appliances). No deteriorating items tend to be small and relatively inexpensive (e.g., light bulbs, vacuum

tubes, ink cartridges). The longer a deteriorating item is operated the more maintenance it requires to maintain efficiency. Furthermore, the longer such an item is kept the less is its resale value and the more likely it is to be made obsolete by new equipment (Taylor 2000).

Queuing

A queue is a waiting line, and queuing involves dealing with items or people in sequence. Thus, a queuing problem consists either of determining what facilities to provide or scheduling the use of them. The cost of providing service and the waiting time of s are minimized. Examples of such problems include determining the number of checkout counters to provide at a supermarket, runways at an airport, parking spaces at a shopping center, or tellers in a bank (Bliss 2007). Job shop sequencing

In queuing problems, the order in which s waiting for service are served is always specified. Selection of that order so as to minimize some function of the time to perform all the tasks is a sequencing problem. The performance measure may for total elapsed time, total tardiness in meeting deadlines or due dates, and the cost of in-process inventories.The most common context for sequencing problems is a batch, or job shop, production facility that processes many different products with many combinations of machines (Winston 2007) Network routing

A network may be defined by a set of points, or “nodes,” that are connected by lines, or “links.” A way of going from one node (the “origin”) to another (the “destination”) is called a “route” or “path.” Links, which may be one-way or two-way, are usually characterized by the time, cost, or distance required to traverse them. The time or cost of traveling in different directions on the same link may differ. Network routing problem consists of finding an optimum route between two or more nodes in relation to total time, cost, or distance. Various constraints may exist, such as a prohibition on returning to a node already visited or a stipulation of ing through every node only once.

3. Why Operations Research is important for the Organizations? Operations research applies sophisticated statistical analysis and mathematical modeling to solve an array of business and organizational problems, as well as improve decisionmaking. As the business environment grows more complex, companies and government agencies rely on analysis to inform decisions that were once based largely on management intuition. Simplifying Complexity Modern challenges associated with a global economy and the growth of technology have increased the complexity of the business environment. Modern corporations often strive to serve a global, rather than a regional or national, customer base and face worldwide competition. By relying on sophisticated mathematical models and advanced software tools, operations research can assess all available options facing a firm, project possible outcomes and analyze risks associated with particular decisions. The result is more complete information on which management can make decisions and set policy, according to the Institute for Operations Research and the Management Sciences, INFORMS for short, a national organization of operations research professionals (Bhalla 2001) Maximizing Data Companies collect large amounts of data but may feel overwhelmed by the volume and lack the time or expertise to fully analyze these data, transforming them into useful information on which to base decisions. Operations research uses advanced mathematical and statistical techniques, such as linear programming and regression analysis, to help organizations make the most of their data, according to INFORMS' Science of Better website. Through detailed analysis of the data, operations research analysts can help uncover options that lead to higher profits, more-efficient operations and less risk (Kapoor 2001). Adding Value In its executive guide to operations research, "Seat-of-the-Pants-Less," INFORMS reports that operations research has added value to organizations in the public and private sector alike. For example, INFORMS reported that UPS used operations research to redesign its overnight delivery network in such a way that saved more than $80 million between 2000 and 2002. Meanwhile, New Haven, Connecticut, used operations research to determine the extent to which the city's needle exchange program reduced HIV infection rates (Buff 2005).

Considerations INFORMS outlines five signs for organizations that could benefit from operations research. These indicators are facing complex decisions, having problems with processes, having trouble with risk, not making the most of available data and needing to overcome stiff competition. Operations research analysts can help organizations overcome these challenges.

4. Constraints and opportunities of Operations research in Bangladesh. Opportunities of operation research in Bangladesh From our brief research we have reached the conclusion is that the following mentioned aspects are the opportunities for the operation management practices in the perspective of Bangladesh. According to some perspective, the aspects are elaborated below: Product selection and design: The product mix makes our system efficient or inefficient. So it is very important to select right product keeping the mission and overall objectives in mind. Design is the most important thing as it makes us competitive or non-competitive and we use operation management to find suitable design to fulfill our requirement with controlled cost. Process of handcrafting products or services for individual customer in Bangladesh can be more effective by following operation research. Division of labor: Dividing a job into a series of small tasks each performed by a different worker. Workers working schedule, working pattern sorting according to their eligibility can be done by operation management. Mass production: High volume production of a standardized product for a mass market. Every year a very large number of readymade garments need to export to the foreign market. For contributing in this sector there need a mass production and a proper management of the production. Operation management make this easier.

Constraints of operation research in Bangladesh In spite of [profound opportunities there are various limitations and constraints faced in implication of the practices of operation management. The limitations are mentioned in the following:  Scientific management: Systematic analysis of work methods cannot be done in some organization in our country for some lacking of scientific development.  Interchangeable parts: Standardization of parts initially as replacement parts, enabled mass production may create contains for operation management in Bangladesh.  Process selection and planning: Selection of process involves taking decisions about technology, machines, and equipment. We have to optimize the output from a given process. And that’s may be caused as constraints of operation research in Bangladesh.  Less Expertise: the eminent absence of expertise in te field of operation research is a prominent limitation in the aspect. Due to the lack of expertise the practices are often subject to faulty ad impractical decision making.

5. Styles of Inventory Management in Operation Research Practices. Business must have methods and procedures that offer ample flexibility to meet unusual and sometimes unreasonable demands on their resources -- personnel, equipment, facilities and operational. Exceptional customer service also includes providing top quality products at reasonable costs. Businesses must keep a careful rein on their inventories. Having too much inventory and/or not having enough stock is considered primary direct causes of business failures. Properly managing inventory requires a system of some sort. It doesn’t matter if the system consists of writing inventory levels on the back of an envelope or using the most sophisticated radio frequency identification system. The different types of inventory management systems all have pros and cons (Russel 2011).

Manual: Many entrepreneur, especially if the business has very few products, keep track of inventory manually. The easiest way to perform manual inventory management is to use a spreadsheet. For example, a small bakery might use a spreadsheet to keep track of inventory purchases and usage. The owner can also set up the spreadsheet to calculate when ingredients need to be reordered. Manual systems allow the small business owner to manage inventory with very little investment in systems or training. Maintaining data integrity is a major downside to managing inventory using a spreadsheet. A single data entry or formula error can cause major inaccuracies in the data output (Mahadevan 2005).

Barcode: Inventory management systems that use barcode technology increase the accuracy and efficiency of managing inventories. All major retailers use barcode technology as part of an overall inventory management program. When a barcode gets read at the point-of-sale (the computerized cash ), inventory sales data are immediately read to a broader system that maintains usage statistics. The company’s purchasing department uses these data to make buying decisions based on sales and existing inventory levels. Barcodes also manage inventory at the warehouse level. Most warehouses use barcode or radio frequency identification (RFID) to scan incoming inventory into the warehouse’s inventory management or warehouse management software (Winston 2001).

Radio Frequency Identification: While barcode technology has done a lot to increase the accuracy and efficiency of managing inventory, radio frequency identification (RFID) has raised the bar on inventory management. Companies that use RFID typically move thousands of pieces of inventory through their doors. RFID uses two types of technology to manage inventory movements--active and ive technology. Active RFID technology uses fixed tag readers assigned throughout a warehouse. Anytime an item with an RFID tag es the reader, the movement of the item is recorded in the inventory management software. Active systems work best in environments that require real-time inventory tracking or where inventory security problems exist (Kapoor 2000).

ABC Method: In order to facilitate this, many firm's use an ABC approach. ABC analysis is based on Pareto Analysis, also known as the "80/20" rule. The 80/20 comes from Pareto's finding that 20 percent of the populace possessed 80 percent of the wealth. From an inventory perspective it can restated thusly: approximately 20 percent of all inventory items represent 80 percent of inventory costs. Therefore, a firm can control 80 percent of its inventory costs by monitoring and controlling 20 percent of its inventory. But, it has to be the correct 20 percent (Chary 2004). The top 20 percent of the firm's most costly items are termed "A" items (this should approximately represent 80 percent of total inventory costs). Items that are extremely inexpensive or have low demand are termed "C" items, with "B" items falling in between A and C items. The percentages may vary with each firm, but B items usually represent about 30 percent of the total inventory items and 15 percent of the costs. C items generally constitute 50 percent of all inventory items but only around 5 percent of the costs. By classifying each inventory item as an A, B or C the firm can determine the resources (time, effort and money) to dedicate to each item. Usually this means that the firm monitors A items very closely but can check on B and C items on a periodic basis (for example, monthly for B items and quarterly for C items). Attributes of inventory management in Operations Research Practices.

6. Methods and Vital issues of Supply Chain Management. The best companies around the world are discovering powerful new source of competitive advantage. It’scalled supply-chain management and it encomes all of those integrated activities that bring product to market and create satisfied customers. The Supply Chain Management Program integrates topics from manufacturing operations, purchasing, transportation, and physical distribution into a unified program. Successful supply chain management then, coordinates and integrates all of these activities into a seamless process. It embraces and links all of the partners in the chain. In addition to the departments within the organization, these partners include vendors, carriers, third-party, companies, and information systems providers. If supply-chain management has become top management's new "religion," then it needs doctrine has stepped forward to provide the needed guidance, espousing what it calls the "Seven Principles" of supply-chain management. When consistently and comprehensively followed, these seven principles bring a host of competitive advantages. The seven principles are as follows (Russel 2005): a) Segment customers based on service needs. Companies traditionally have grouped customers by industry, product, or trade channel and then provided the same level of service to everyone within a segment. Effective supply-chain management, by contrast, groups customers by distinct service needs--regardless of industry--and then tailors services to those particular segments. b) Customize the Supply Chain Management network. In deg their Supply ChainManagement network, companies need to focus intensely on the service requirements and profitability of the customer segments identified. The conventional approach of creating a "monolithic" Supply Chain Management network runs counter to successful supply-chain management. c) Listen to signals of market demand and plan accordingly. Sales and operations planning must span the entire chain to detect early warning signals of changing demanding ordering patterns, customer promotions, and so forth. This demandintensive approach leads to more consistent forecasts and optimal resource allocation (Russel 2005). d) Differentiate product closer to the customer. Companies today no longer can afford tostockpile inventory to compensate for possible forecasting errors. Instead, they need to postponeproduct differentiation in the manufacturing process closer to actual consumer demand. e) Strategically manage the sources of supply. By working closely with their key suppliers to reduce the overall costs of owning materials and services, supply-

chain management leaders enhance margins both for themselves and their suppliers. Beating multiple suppliers over the head for the lowest price is out, Andersen advises. "Gainsharing" is in. f) Develop a supply-chain-wide technology strategy. As one of the cornerstones of successfulsupply chain management, information technology must multiple levels of decision making. It also should afford a clear view of the flow of products, services, and information. g) Adopt channel-spanning performance measures. Excellent supply-chain measurement systems do more than just monitor internal functions. They adopt measures that apply to every link in the supply chain. Importantly, these measurement systems embrace both service and financial metrics, such as each 's true profitability. The principles are not easy to implement, the Andersen consultants say, because they run counter to ingrained functionally oriented thinking about how companies organize, operate, and serve customers. The organizations that do persevere and build a successful supplychain have proved convincingly that you can please customers and enjoy growth by doing so. The Methodology of a Supply chain Management project- solutions A Four Step integrated Approach In view of the importance of Supply Chain Management to commercial success, making the right decision about which system is best is vital. Before deciding how to develop new service Supply Chain Management chains and economical distribution centers, many factors must be considered, such as, the required customer service levels, optimum location, stock holding policies and EDP systems. To help organizations make the best decisions, the Miebach Supply Chain Management Group employs an integrated planning approach, consisting of four steps from planning to realization: The integrated planning process helps to find solutions that best match client’s requirements and the technical demands of the problem. The only way to manage the growing complexity in international Supply Chain Management chains is through the integration of strategy, engineering and IT systems and methods (Miebach 2004).

Where the Supply Chain Creates Value Supply chain management's ability to affect profitability and shareholder value should come as no surprise. As Richard Thompson, a partner in Ernst & Young's supply chain practice, points out, supply chain management affects virtually every aspect of a company’s business. "Everything is involved," he says. "Supply chain management [influences] plan-buy-make-move-and-sell. “Enhanced revenues, tighter cost control, more effective asset utilization, and better customer service are just the beginning. Thompson and his colleagues have identified five areas in which supply chain management can have a direct effect on corporate value. They include: Supply chain management contributes to profitable growth by allowing assembly of "perfect orders," ing after-sales service, and getting involved in new product development. The bottom-line numbers give the answer. According to A.T. Kearney's research, inefficiencies in the supply chain can waste up to25 percent of a company's operating costs. With profit margins of only 3 to 4 percent, the consultants point out, even a 5-percent reduction in supply-chain waste can double a company’s profitability (Kearnney 2004). These study includes   

Potential analysis Concept study Detailed planning Project or change management

7. A brief about the Matador Ball Pen Industries Bangladesh. Established in 1998, Matador Ball pen Industries is the largest ball pen manufacturer in Bangladesh. We are proud to say that we are the largest Disposable Pen maker in ASIA having a capacity of making 1 million Disposable pens per day. Apart from disposable pens, we make refillable ball pen and gel pen with various ball diameters and ink colors to meet our customers' requirements. Matador has created an uncontested marketplace in Bangladesh through value innovation. We have redefined the core value of a pen introducing OIL GEL SYSTEM (OGS) and still developing trendy products innovating various augmented values. Innovative product development has enabled us to serve some MNCs as well as some reputed local and international buyers. We are already exporting our pens to Middle East, Africa and some parts of Asia and Europe. We use high quality raw materials imported from , Belgium, Korea, China and India. A highly precise mould, imported from Korea, ensures dimensional accuracy and flawless finishing of every part of our pens. In-house packaging material development facility has enabled us to offer OEM manufacturing within the shortest lead time. We have 2500 innovative, sincere and hardworking professionals involved in Production, Finance, HR, Sales & Marketing departments of Matador. They are our most valuable assets and are responsible for continuous growth for the company as well as for the country (Matador 2014).

8.Practices of relevant inventory style in case of Matador Ball Pen Industry. Practices of relevant inventory style in case of Matador Matador group is aleader in the market that it operates in. matador has the zenith of the market through its proper management in the related sector of the management within the organization. The organization has a structure inventory management style throughout its process of managing the inventory. As noted earlier that there are various relevant inventory practices within an organization in the perspective of operation management practices in Bangladesh. The contemporary inventory practices within the organization are:

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SAanfteictyp Sa ttoiocnk IIn vvee nn ttoorryy

C y c l e In v e n t o r y

P ip e li n e I n v e n t o ry

Figure: Type of Inventory Among the relevant practices in the contemporary inventory practices in the Bangladeshi culture of industries there are only few practices are relevant to our chosen organization the Matador group. The analysis of the inventory practices that are related to the organization that are given in the following:

Implication of Cycle Inventory in Matador Cycle inventory a method of keeping track of inventory by performing inventory counts constantly, or on a frequent and regular basis, instead of once per year or once per quarter. A businessusing the cycle inventory method might count different items at different rates, based on the level of turnover or demand for that particular item. In case of the calculation the lot size of the inventory is used to find out the cycle inventory. The equation of cycle inventory is: Cycle Inventory =

Q 2

The cycle inventory of Matador is =

100 metric ton 2

= 50 metric tons Matador does the calculation of the inventory on the basis of quarterly evaluation of the inventory. The general style of the inventory will be able to consider the prospect related to the costing of the inventory. The cycle inventory cost can be calculated through the implication of various elements of costing in respect of cycle inventory. Application of Safety Stock Inventory in Matador Safety stock is the amount of extra and surplus inventory that the organization keeps to face the ups and down of uncertain aspects of the demand, lead time and supply changes of the market (Winston 2005). Matador also keeps the safety stock in the inventory to face the ups and downs of demand based on certain situation of the market. The safety stock of Matador is the 20% of their total production (Matador 2014). Implication of anticipation inventory in Matador Anticipation inventory is the way of keeping the inventory based on the anticipation of the demand. It is used to absorb the uneven rates of demand or supply which the organization may face in the market. The Matador keeps the inventory on the basis of assumption of the demand and the supply. The anticipation of the inventory also depends on the sales budget, sales forecast and product itself.

Justified comparison of pipeline inventory in Matador The material flow system in an organization is regarded on the basis of inventory that moves from point to point in the entire flow of inventory. Even though Matador does not follow the pipeline inventory system but the information generated from the discussion can be used to calculate the pipeline inventory of the organization. The equation and calculation of pipeline inventory in of Matador is given in the following; Pipeline Inventory = DL D= Weekly Demand of the inventory L= lead time. Pipeline inventory of matador = 100000120 = 12000000 These are the inventory practices that are practiced and relevant in case of inventory styles in respect of Matador. This will illustrate the possible factors and practices that are present within the organization. System of Inventory Management in Matador Matador uses ABC costing method for different category or product line on the basis of demand. The product line of the organization and the product line is differentiated in accordance with the ABC method where the product are categorized with the basis of dollar value usage of the product. Matador differentiate the product on the basis of demand as well. The more the demand, the more close and flexible the inventory management will be as well. These are the relevant contemporary inventory system of Matador that can be related to and illustrated on the basis of the gathered information.

9. Supply Chain Practices of Matador Ball Pen Industry. Supply chain creates the network of utilities among customer and supplier with feasible order fulfillment process. Supply chain management is in the mainstream of Matador as they are the market leader in the Ball pen industry in Bangladesh. The market of the Matador is the whole country and so that they need to maintain an efficient supply chain strategy. How Matador is practicing the supply chain management process in their business to satisfied customers with a well supply flow will be reflected in this content. The different supply chain practices of the Matador Ball Pen Industry are given below with various aspects and measures of the supply chain management. Supply Chain for Manufacturing In the manufacturing of the product of the Matador different aspects of supply chain is directly related that affected the operations of the Matador. Raw Materials: Matador is the market leader in the Ball pen industry because they not only produce quality product but also uses good quality raw materials in their production. All the raw materials of Matador are imported from different country based on their character. As their raw material Matador use PP (poly profane) which actually the byproduct of petroleum is imported from Middle East and warehoused at Singapore. This is the basic material which we often used to call plastic. Another material in the manufacturing process named Tips are came from India, Thailand and . The core material of the pen Ink, are imported from India, , Japan and Thailand. And the packaging manual is come from Taiwan (Matador 2014). So, overall in the purchasing and supplying of the raw material Matador is very much conscious and careful as they are directly related with the customer satisfaction. Finished goods: Finished goods are the items that are actually produced from the manufacturing plant and it ready to use or consume. Here for Matador the finished good are ball pen manufactured from the plant and send for the supplier, wholesaler and retailer for the consumer. The finished goods of Matador are of various types, category and prices.

Inventory measures of Supply Chain Performance Weeks of supply: The production of Matador is in the good pace and rapidly they need to supply the products into the every places of the country. So, Matador is able to manage high weekly sales. The weeks of supply of Matador is about 9.5 weeks which actually measured by dividing the average aggregate inventory value with weekly sales (Matador 2014). Inventory Turnover: Inventory turn is very important to know for every business which emphasizes the organization in maintaining a good inventory system. Inventory turnover is measuredby dividing the annual sales with average aggregate inventory value. The inventory turn of the Matador is 5 turns ina year which meets their standard of turns a year. The more the turnover in a year, the more the revenue Matador earn because of its direct relation with the annual sales. To achieve more progress the Matador should increase the total annual sales or need to decrease the aggregate inventory value. Supply Chain Process Measures Customer relationship process: Matador maintains their customer relation process in various ways in a cordial manner. As a market leader in an industry Matador follows and maintains their customer relationship process through different medium. Matador has its website and through it Matador provides updated information to their customers. E-commerce: We all know that e-commerce is the ace of every organization in the communication process with the customers. Matador is not beyond that. Through the website of Matador, it provides various offers to the customers. Customers of Matador are able to purchase their product through ordering in the internet. On the basis of order Matador has provided home delivery for their customer. E-commerce gives Matador great flexibility in reaching the global access with reduced cost (Matador 2014). Business to Business Systems: Matador not only sells their products to the ultimate consumers by the retailers but also involves commerce between different firms. Matador sales their product to many big business organizations including multinational company, bank, corporate house, pharmaceuticals, chemical and many others which actually purchases a great amount or lot of product (Matador 2014).

Order Fulfillment and Distribution Process Order fulfillment of the customers and effective distribution gives a business huge benefit in capturing the customers mind and make the product available at their hand. The strategies of Matador in both processes areForward Placement: Forward placement is locating the stock of product closer to customer. Matador has successfully practicing the forward placement strategy in their order fulfillment process. Matador places their inventory at different warehouse controlled by the dealers or to wholesalers across the country for better placement and easy access to the product among the customers. Matador has 270 inventory placement and distribution center across the country for the placement of product or inventory. Decentralized Distribution: In their product distribution strategy Matador usually used decentralized distribution from 270 distribution centers. The 425 sales representatives also provide it a good flow in the distribution of their product. Matador distributes their product from Dhaka to rural places of the country. Good transportation system gives Matador a thrust in their distribution system. As their distribution vehicle Matador uses pick-up van, covered van, rickshaw van and also uses their party transportation system. Matador also operates their inventory and distribution process through software that gives them the necessary information about the whole inventory and distribution system that is their one of the competitive advantages. Supplier Selection and Relationship Process Effective supplier selection and maintaining a good relationship with supplier is another key factor for any business organization to achieve goal. Matador maintaining their relationship with supplier in a feasible manner that benefited both party by providing good output.

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Figure: Aspects of supplier relation of Matador

Figure: Supplier Selection Criterion of Matador Supply chain Disruption Matador doesn’t have a any kind of internal causes to hamper or disrupt its supply chain. The only for which the supply activities disrupted is the external activities. In the production to distribution Matador maintain a sustainable flow that keeps their supply chain smooth. The external causes that sometimes hamper it activities are    

Late deliveries Absence of the purchaser Violence political situation Unfavorable environment Transportation strikes

Efficient Supply Chain strategy There are basically two types of supply chain strategy including Efficient supply chain strategy and Responsive supply chain strategy. Between this two kinds as a supply chain strategy Matador follow the efficient supply chain strategy for their huge amount of customers and higher demand. Efficient supply chain strategy focuses on the efficient

flow of services and materials to a minimum. Efficient supply chain strategy works best where demand is relatively high and predictable. Matador regularly conducts market survey over their customer, supplier and competitors. Through the market survey Matador are easily able to know and predict their relative demand in future for their potential and new market. Product customization Matador not only produces and sale regular pen as their product but also customize their product for the customers. In case of product customization Matador priories the big organizations who actually customize and purchase a great lot of the product. Here customization is occurs by deg and shaping the product design into customers choice and so Matador customize their product by customized design and putting the names of the organization on the pen. Some of the customized buyers of Matador are     

Unilever Bangladesh Ltd. Marico Bangladesh Ltd. Pacific Pharmaceuticals Ltd. Kohinoor Chemical co. (BD) Ltd Civil Engineers Ltd Islami Bank Bangladesh Ltd

10. Limitation and constraints faced by the Matador Ball pen Industry. In managing the inventory of the business Matador faces various limitations in the inventory management of the inventory of the organization. As the inventory management system of the organization is basically focused on cycle inventory and anticipation inventory Matador to some extent has the implication of almost every relevant inventory management practices. Matador faces the most crucial problem regarding the financial limitations in case of managing the organization. The organization has limitation in case of the holding cost if the inventory. The tax, insurance and the rent of the inventory costs also adds up to the limitations that are faced by the organization. The limitations are also extended to the cost of raw materials that are increasing day to day. The recent announcement by the government to increase the price of gas has also incremented the limitation to an extended level.

11. Recommendationfor Matador Ball pen Industry to eradicate the constraints. As there are many constraints and limitations faced by the Matador, they require some recommendations for the problems they are facing. Matador argues that they don`t have any limitations in the supply chain management and only few problem is associated with inventory management system the recommendations should be inventory based. The following recommendations Matador can follow to eradicate their constraints Matador need to ensure a sustainable flow of the working capital for the better management of the work in process and inventory management.  Matador need to empower its relation to the foreign raw material supplier and take a better control of the market so that the increased price of raw material cannot hamper its activities.  Cost effectivemeasures should be taken to minimize the cost and charges that are related to the holding and supply charges within the flow of the management.  Government and other regulatory organizationmust facilitate Matador with proper beneficial procedures to enhance the efficiency in the overall operation of the organization.

12. Conclusion The overall objective of the report is to assess the entire operation management situation of the organization. This report contains a brief discussion about the relevant overview of various operation management practices and their implication in the contemporary operation management practice of the industries in Bangladesh. This report also elaborates wit efficiency the various application of supply chain management and inventory management practices in of Matador. The assessment of existing inventory and supply chain practices has been outlaid in the report with proper justification and efficacy. At last proper recommendation has been made that will facilitate the organization to ensure a better and enhanced operation management practice in Matador.

13. Reference Budnick, F.S., Mcleavy Dennis, Mojena Richard, Principles of Opeartion Research for Management, Second edition, 1999. Buffa, E.S., Sarin, R.K., Modern Production/Operation Management, John Wiley and Sons,Eighth Edition. B. Erkan, M.C. Jothishankar, T. Ekrem , W. Teresa, “Evolution of operations management: past, present and future”, Management Research News, Vol. 30, No.7, 2007, pp.843-871 Chary, S. N., Production and Operation Management, Tata McGraw-Hill Publishing Company Limited, Second edition 2000. Chunawalla, S.A., Patel, D.R., Production and Operation Management, Himalaya Publishing House, Sixth edition, 2006. Corner, J. L., C. W. Kirkwood, 1991. Decision analysis applications in the operations researchOperations Research 39 J.Luckman, J.Stringer, “The Operation Research Approach to Problem Solving”, British Medical Bulletin, Vol.30, No. 3,1974, pp 257-261. Kapoor, V.K., Operation Reseacrh, Sultan Chand and Sons, Seventh Edition, 2001. L. Eunjin, O. Joon-Yeoul, P. Edward, “Practical Managerial Decision Making Tools:Operations Research”, Journal of Applied Business and Economics. Mahadevan, B., Operations Management: Theory and Practice, Pearson Education, Third edition, 2008. Russell and Taylor, Opearation Management: Quality and Competitiveness in a Global Environment, Wiley India Edition, Fifth edition, 2006. Winston, W.L, Operation Research: Applications and Algorithms, Fourth Edition, 2007. W.T.George, “Operation Research and Evolution”, Journal of Operation Research Society, Vol.37, No.8, 1986, pp.725-733. Wilson J.M., “Classification of Models in Operation Research”, Journal of Operation Research Society, Vol.36, No.3, 1985, pp.253-256

14. Appendix:

L PM e S o xo o a g u ev s k l e r t ae i i st sn y c u u c y or y e p t e h o c a d i d t e

p p lr i cne rt i pe v f r t n a

A PHOTO WITH DEPUTY GENERAL MANEGR OF MATADOR

A GROUP DISCUSSION WITH DEPUTY GENERAL MENAGER OF MATADOR