Cango Week 3 & 4 Video Analysis

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  • Topic: Want, Need, Integral
  • Pages : 2 (833 words )
  • Download(s) : 1160
  • Published : December 3, 2011
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Issue: The ASRS system that Jack has chosen is expensive and also would pull personnel from other projects to work on the integration of the new system Jack and Warren were having a discussion about simplifying, eliminating, automating and integrating and what the ASRS would do for the distribution facilities. Now Jack was looking into the future and how with having this new ASRS and how much quicker it would be than with the current system that they have for the picking. Then he said that he would want two ASRS. But Jack has not really discussed how pricey this new system is and what it would do with the current employees that are on the old system and what they would do with the new ASRS and also if they are going to need more staff or less staff with this system being integrated while still operating the old system at the same time. Also Jack and Warren are not looking at the financial side of purchasing, installing and training the current employees on the new ASRS and also integrating it. Clark and Elizabeth try to tell them that the company really does not have the finances to do this at the moment.

Solution:  
CanGo needs to start with just one ASRS system instead of purchasing two at this time so that they can see how product flows and if they really need second system. The cost of a ASRS system varies in size and how it functions within the warehouse. The cost can be estimated from $125,000 to $200,000. Now that is just purchasing and installing the system. Then the system is going to need to have people to operate it, so that can cost more because it is a very complex system that is ran by a computer that states what shelf it needs to go to and what it needs to pick up. Installing this complex system could take a few weeks up to a month, but it could be sooner if CanGo only orders on ASRS system. If this system was implemented now, then the company would not have the finances to actually start up the online gaming system, because they had used it...
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