A couple of small typos.
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@ -50,9 +50,9 @@ Beanie Limited in southern europe and the mediterranean. The warehouse and its
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team are responsible for serving clients and also other smaller regional
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team are responsible for serving clients and also other smaller regional
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warehouses from Beanie Limited in this geography. From the warehouse point of
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warehouses from Beanie Limited in this geography. From the warehouse point of
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view, they are usually just called "the clients". Whenever one of the clients
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view, they are usually just called "the clients". Whenever one of the clients
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needes raw beans, they arrange a transport truck that goes to the warehouse to
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needs raw beans, they arrange a transport truck that goes to the warehouse to
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pick up a certain amount of goods. Elisa's team fill up the truck with the
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pick up a certain amount of goods. Elisa's team fills up the truck with the
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requested goods, and then the clients take care of receiving that in their own
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requested goods, and then the clients take care of receiving that at their own
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locations.
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locations.
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The Caserta warehouse itself has only one way to source coffee beans to store
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The Caserta warehouse itself has only one way to source coffee beans to store
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@ -61,7 +61,7 @@ Diemen, near Amsterdam. Whenever Elisa's team considers that more stock is
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needed, they post a sourcing order to the central office for a certain amount
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needed, they post a sourcing order to the central office for a certain amount
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of beans. The central office arranges the goods and the delivery and, after a
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of beans. The central office arranges the goods and the delivery and, after a
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few days, the goods reach Caserta and are stored. The central office tries to
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few days, the goods reach Caserta and are stored. The central office tries to
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ensure a lead time of 7 days (lead time is the time that passess between an
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ensure a lead time of 7 days (lead time is the time that passes between an
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order being placed and the goods reaching their destination), but the reality
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order being placed and the goods reaching their destination), but the reality
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is they do what they can and this time is not always respected.
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is they do what they can and this time is not always respected.
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@ -72,13 +72,14 @@ which is risky for the business. On the other hand, having a lot of stock means
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high warehouse costs and financial opportunity cost (if Beanie Limited has 1
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high warehouse costs and financial opportunity cost (if Beanie Limited has 1
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million € in coffee beans in a warehouse, that is 1 million € they can't invest
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million € in coffee beans in a warehouse, that is 1 million € they can't invest
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somewhere else to improve their business). Thus, Elisa needs the stock to be as
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somewhere else to improve their business). Thus, Elisa needs the stock to be as
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small as possible, without disappointing clients.
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small as possible, while making sure she is not disappointing clients at the
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same time.
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Elisa is calling you because 2021 was a terrible year for the warehouse. The
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Elisa is calling you because 2021 was a terrible year for the warehouse. The
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year was a chaotic one, and Elisa's team was not able to run operations
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year was a chaotic one, and Elisa's team was not able to run operations
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smoothly. Although Elisa is not providing exact numbers, she is very well aware
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smoothly. Although Elisa is not providing exact numbers, she is very well aware
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that the warehouse stock was unnecessarily high at times, and that there were
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that the warehouse stock was unnecessarily high at times, and that there were
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too many periods were the warehouse was out of stock and clients had to wait to
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too many periods where the warehouse was out of stock and clients had to wait to
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get their goods.
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get their goods.
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Elisa thinks that the main reason for this is the lack of a clear policy for
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Elisa thinks that the main reason for this is the lack of a clear policy for
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@ -86,7 +87,7 @@ when to order and how much to order from Diemen. Her team decides independently
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when to do it, and Elisa has a feeling that they are not approaching these
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when to do it, and Elisa has a feeling that they are not approaching these
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decisions the right way. This means that sometimes they order when there is no
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decisions the right way. This means that sometimes they order when there is no
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need to, sometimes they don't order when they should be, and that the amounts
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need to, sometimes they don't order when they should be, and that the amounts
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being ordered might not be the best ones.
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being ordered might not always be the best ones.
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Here is where you come in. As simulation experts, Elisa expects from you that
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Here is where you come in. As simulation experts, Elisa expects from you that
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you can help design an ordering policy to fix these issues. Doing this implies
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you can help design an ordering policy to fix these issues. Doing this implies
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