Four Stars Industries Logistics

Four Stars Industries Logistics

Question 1.
Four Star Industries faces four principal problems in its mattress manufacturing operations. Firstly, the pressure from activities that ranged from manufacturing to assembly and quality control is passed on to workers causing them to be dissatisfied and contemplate leaving the company. This is seen where the company previously produced 13 mattress models but now produces 230 models to require more work with the potential for increasing the turnover rate. Secondly, the company is experiencing reduced sales volumes every year. Thirdly, stock-outs of slow-moving mattresses and poor inventory management. Fourthly, declining order refill rates as a result of the stock-outs and competition. Fifthly, the company’s inability to accurately match customer demand to its supply. Sixthly, the company faces intensified competition for the local market. Finally, there is inefficient production scheduling. The five issues that have been mentioned describe the problems that Four Star Industries faces in its mattress manufacturing operations.

Question 2.
The proliferation of mattress varieties has an impact on Four Star’s operation. In this case, the proliferation has increased the demand placed on the company’s operations to create a situation in which they appeared chaotic. For that matter, the added pressure that workers face in producing a greater variety of mattresses for its local dealers have reduced their satisfaction levels and made …