An analysis of supply management of raw food items the case of Majestic Enterprise (PVT.) Limited

Abstract

Majestic Enterprise (PVT.) LTD. is a processor and exporter of frozen and chilled raw food items, as well as dry food items. The company has been operating since 1998 and exporting its products to Asian and European countries. According to The Food and Agriculture Organization of the United Nations (FAO), agriculture (crops, livestock, fisheries and forestry) accounts for one third of Gross Domestic Product and agricultural products constitute 32 % of the total value of exports. This report aims to highlight how the company manages its supply chain, that is, procures the agricultural products and processes them for value addition, till they serve their foreign clientele. Their procurement process, logistics, operational strategies, quality management, demand forecasting and inventory management, manufacturing process and bottleneck analysis are discussed in the report. The report starts with the company strategies and how the company procures the raw items from the enlisted vendors. The organization uses a mélange of core strategies to retain or increase the bonding between the organization and the customer. It then moves to how the company processes the raw materials into finished goods effectively and efficiently, managing the inventory levels and the domestic and international quality standards. The EPQ Analysis demonstrates the optimal production quantity (nearly 2 MT) for Vegetables only, with a Production Cycle Time of two and half days. The forecasting method used is Moving Average Method, to keep an estimate quantity of safety inventory, so that the company do not face shortage of the seasonal items or items that can be found on specific time of the year. As the factory is for processing raw food items, it follows a Batch process as items with similar processing methods are worked on at times. They ship the products by Air and Sea. To conclude, the report contains some problems and hindrances faced by the organization, along with feasible suggestions or recommendations. Upon completion of my graduate courses, the opportunity to make this internship report on the company provided me to compare the business process with the theories and practices of supply chain management in the organization.