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  • Essay / Rocket-Blast Case Study - 1062

    The company believes that reducing these holding costs will require one of two possible solutions. The first possible solution is to increase labor and reduce working hours in order to have more employees in the morning to unload trailers more quickly, thereby reducing holding costs (Precord & Macdonald, nd) . If hours are reduced, workers may feel that further action affecting their working conditions may be taken by management and they may join a union to prevent such action (Precord and Macdonald, n.d.). A union at a local beverage factory was the most likely choice for workers, and this union had a history of often clashing with management (Precord and Macdonald, n.d.). If workers join a union, management's ability to make long-term decisions could be compromised. Increasing staff numbers and reducing hours should therefore be a solution that needs to be analyzed closely from a short and long term perspective. The second solution is to replace the current supplier of barrels and/or syrup transporter with another, which would result in lower holding costs (Precord and Macdonald, nd). Salt Lake Kegs, a keg supplier, and Great Plains 3PL, a 3PL company, were considered as alternatives to the current keg supplier and syrup transporter (Precord & Macdonald,