Eskom is a strategic 100% state-owned enterprise of South Africa. The enterprise generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors. Additional power stations and major power lines are being built to meet rising electricity demand in South Africa. Eskom will continue to focus on improving and strengthening its core business of electricity generation, transmission, trading and distribution. As at 31 March 2019, Eskom employed 46665 staff (inclusive of subsidiaries), served 6.2 million direct customers (2017:5.6 million), built 30 (including 1 nuclear) operational power stations with a nominal capacity generating capacity of 44 172MW and realised total sales of 208 319GWh. It also had approximately 387 633km of cables and power lines. Suppose that you have appointed as warehouse manager of Eskom and have been informed that the company is struggling to manage warehouse operations effectively and efficiently. This also contributes to inventory management challenges such as demand and supply imbalance, stock inaccuracy, excess inventory, slow moving and obsolete stock, insufficient staff to manage stock and insufficient storage space. Your supply chain manager asks you to advise on the following: Considering the nature and the various types of inventory that Eskom hold to meet the electricity needs of its customers (households and companies) in South Africa, where would Eskom locate the warehouse(s)? Justify your answer (Write a minimum of 10 sentences to support the answer). What types of warehouse(s) would be suitable for Eskom? Justify your answer (Write a minimum of 10 sentences to support the answer).

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Eskom is a strategic 100% state-owned enterprise of South Africa. The enterprise generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors. Additional power stations and major power lines are being built to meet rising electricity demand in South Africa. Eskom will continue to focus on improving and strengthening its core business of electricity generation, transmission, trading and distribution. As at 31 March 2019, Eskom employed 46665 staff (inclusive of subsidiaries), served 6.2 million direct customers (2017:5.6 million), built 30 (including 1 nuclear) operational power stations with a nominal capacity generating capacity of 44 172MW and realised total sales of 208 319GWh. It also had approximately 387 633km of cables and power lines.

Suppose that you have appointed as warehouse manager of Eskom and have been informed that the company is struggling to manage warehouse operations effectively and efficiently. This also contributes to inventory management challenges such as demand and supply imbalance, stock inaccuracy, excess inventory, slow moving and obsolete stock, insufficient staff to manage stock and insufficient storage space. Your supply chain manager asks you to advise on the following:

Considering the nature and the various types of inventory that Eskom hold to meet the electricity needs of its customers (households and companies) in South Africa, where would Eskom locate the warehouse(s)? Justify your answer (Write a minimum of 10 sentences to support the answer).
What types of warehouse(s) would be suitable for Eskom? Justify your answer (Write a minimum of 10 sentences to support the answer).

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