Case Notes Solutions/ Answers For Jay Bharat Spices Pvt. Ltd. A Spicy Quandary By Shravan Parsam, Amol Dhaigude, Sidhartha Padhi

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Teaching Note

JAY BHARAT SPICES PVT. LTD.: A SPICY QUANDARY




SYNOPSIS

Jay Bharat Spices Pvt. Ltd. (JBS), a company located in Cuttack, India, is involved in the manufacturing
and distribution of spices across India under the brand name Bharat Masala. The company specializes in
producing basic spices such as turmeric powder, cumin powder, and chili powder. JBS’s senior
management team recently noticed a rise in demand for the spice garam masala in the East India market
and has asked Vikram Panda, the company’s vice-president of East India operations, to oversee the launch
of this new product over the next six months. Panda is now struggling with multiple constraints related to
the launch, including storage capacity in the warehouse and various financial constraints that are forcing
Panda to look for a more economical and efficient solution.


LEARNING OBJECTIVES

This case provides an opportunity for students to learn about basic forecasting techniques, demand
aggregation, multi-warehousing concepts, and manufacturing waste management (known in the Toyota
Production System by the Japanese terms Muda, Muri, and Muri). After working through the case and
assignment questions, students will be able to do the following:

 Analyze the impact of demand aggregation on safety stock.
 Evaluate the alignment of product with supply chain.
 Apply forecasting techniques to increase the accuracy in demand forecasting.
 Identify and manage waste in the product distribution network.
 Evaluate the decision-making process of warehouse capacity expansion.


POSITION IN COURSE

This case is suitable for undergraduate- and graduate-level courses that discuss inventory management,
forecasting techniques, demand projection, product supply chain fit, and warehouse management.. The case

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can be used in management, supply chain management, inventory management, and warehouse and
logistics management courses. It is also suitable for discussing issues and challenges that family-run
businesses face, and for helping students understand how team dynamics affect the operation of a business.


RELEVANT READINGS

 S.N. Chary, Productions and Operations Management, 6th ed. (Chennai, India: McGraw Hill
Education, 2019), chap. 4.
 Sunil Chopra and Dharam Vir Kalra, Supply Chain Management: Strategy, Planning and Operations,
7th ed. (New Delhi, India: Pearson Education, 2018), chap. 12.
 Marshall L. Fisher, “What Is the Right Supply Chain for Your Product?,” Harvard Business Review,
December 1, 2004. Available from Ivey Publishing, product no. 97205.
 Krishna K. Havaldar and Vasant M. Cavale, Sales and Distribution Management: Text and Cases, 3rd
ed. (Chennai, India: McGraw Hill Education, 2018), chap. 16.
 Janat Shah, Supply Chain Management: Text and Cases, 2nd ed. (New Delhi, India: Pearson Education,
2016), chap. 4.
 William J. Stevenson, Operations Management, 13th ed. (New York, NY: McGraw Hill Education,
2018), chaps. 3 and 14.


SUPPLEMENTAL MATERIALS

 Rieco Industries Pvt. Ltd. “Automated Turmeric Processing Plant.” Posted July 6, 2020. YouTube
video, 2:27, https://www.youtube.com/watch?v=WDtrgdPFr3A.

The instructor can show this video to the class to help students become more familiar with the spice
manufacturing process. However, students should be reminded that the process depicted in this video is not
necessarily the method that JBS follows.


ASSIGNMENT QUESTIONS

1. What challenges is Panda facing?
2. What type of product does JBS manufacture, and what is the best supply chain network to deliver its
product to customers?
3. What types of manufacturing waste is JBS incurring?
4. What is the impact of reduced lead time on inventory maintained at the factory warehouse?
5. What method of forecasting has JBS adopted? What other forecasting methods can JBS consider using?
Refer to the data provided in the case (see case Exhibit 2) to forecast the demand for JBS product.
6. Critically evaluate the various options proposed by the core team to create the required storage capacity
for the new garam masala product.
7. How should Panda proceed?

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TEACHING PLAN (OFFLINE MODEL)

Discussion Points Time (in Minutes)
Challenges facing Panda (assignment question 1):
 Company background 10
 Spices production process
Product and supply chain alignment (assignment question 1) 10
Types of production waste and impact of reduced lead time on inventory
15
(assignment questions 3 and 4)
Demand forecasting for spices and error tracking
20
(assignment question 5)
Evaluation of alternatives to create the required storage capacity
20
(assignment question 6)
How Panda should proceed and why (assignment question 7) 15
Total 90

For the case discussion, the instructor can refer to the provided board plan (see Exhibit TN-1).


TEACHING PLAN (ONLINE MODEL)

Discussion Points Slides Time (in Minutes)
Challenges facing Panda (assignment question 1):
 Company background 5–7 10
 Spices production process
Product and supply chain alignment
8–11 10
(assignment question 1)
Types of production waste and impact of reduced lead time on inventory
12–18 15
(assignment questions 3 and 4)
Demand forecasting for spices and error tracking
19–23 20
(assignment question 5)
Evaluation of alternatives to create the required storage capacity
24–30 20
(assignment question 6)
How Panda should proceed and why
31–35 15
(assignment question 7)
Total 90


ANALYSIS

1. What challenges is Panda facing?

Panda is vice-president of East India operations at JBS. He is tasked with arranging appropriate storage
space to ensure a smooth launch of the company’s new product, garam masala. With only six months
remaining before the launch and an already expensive marketing campaign, Panda is worried about a
potential funding issue and liquidity. Further investments in inventory management may become necessary
during this financial year.