Lesson 5 case Studies

Case Study of Week 5th

Master Tag
Bishnu Dhamala
MGT 620 Operations Management & Supply Chain
August 05, 2014

Lesson 5 case Studies

Introduction
Master Tag is an international company committed to the production of horticultural care
tags and merchandising solutions. Master Tag is an international company enthusiastic to the
production of plastic horticultural care labels and merchandising solutions. The company was
established in 1949 by Ludwig Schmidt as Master Products Company. At present the company is
producing a line of plastic horticultural labels for seeds companies
As we know that, currently company is facing a problem regarding its supply chain. The
foremost problem is there is no match between supply of the producers and the demand of the
consumers so that scarcity and excessive production of the plant tags usually occurs. To solve
this problem company has derived one solution for achieving a match between supply of the
producers and the demand of the consumers. They are scheduling to set a new supply chain
management system by making a fairly large batch which would be produced and shipped
directly to the growers instead of the seed companies.
And later, when the grower results became available, a second batch would be produced
using information from growers on how many additional tags are needed. The second batch /
consignment would then be made and shipped to the growers.
Revised approach
As we know that, the key benefit regarding to the revised approach is that the tags are
being sent directly to the needy growers. The growers are able to order another batch of tag once
the plants have grown if they have a surplus in plants. This type of process has reduced the
inconvenience in the process of tag acquirement. It is also useful to avoid the duplication in the
supply of tags from manufacturer Master tag. There are different kinds of pros and cons
regarding the revised approach, some of the key points are as follows:

Lesson 5 case Studies

Pros
There will be a guarantee of exact numbers of plant tags.
Quick reply of customers demand and suggestion
The seeds will be planted with the tags and the tag wont go away the seed all the way
from plantation until it reaches the retail customer.
It reduces the cost of warehousing.
The seed companies wont have a surplus of tags in their warehouse.
Cons
They are breaking the chain connecting seed companies which may dissatisfy them.
They may not get same predictable coordination from Grower Company.
It adds an extra step to the Growers manufacturing process which can lead to longer
time to the process.
Supply chain functions well from shared trust, here they are planning to supply
directly to growers which were not in contact with them so growers may not believe
them.
Conclusion/Recommendation
Normally, supply chain management is the management of flow of goods. It includes the
movement and storage of raw material, work-in-process inventory, and finished goods from
point of origin to point of consumption. Interconnected or interlinked networks, channels and
node business are involved in the provision of products and services required by end customer in
a supply chain.
Lastly, we can say that to meet the demand / order appropriately there must be efficient
supply chain of the company. Latest or new supply chain management system makes a quite

Lesson 5 case Studies

large batch. Subsequent to that a second batch would be shaped using information from growers
on how many additional tags are needed. Then products are made and shipped to the growers
which might help the company to solve the problem in supply chain.

Lesson 5 case Studies

Reference:
http://www.studymode.com/essays/Mastertag-CaseStevenson, W. (2009). Operation Management (10th ed.). McGraw-Hill Irwin.
http://www.mastertag.com