Cango Week 3 4 Analysis

Topics: Want, Need, The Order Pages: 3 (975 words) Published: February 15, 2013
Week 3 video starts by Jack argue with Warren the new layout that incorporates bar-coding and automated storage and retrieval systems (ASRS). they were discussion about simplifying, eliminating, automating and integrating and what the ASRS would do for the distribution facilities. Jack wasn’t looking into the company current financial situation and more looking ahead 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. Jack also mentioned he wants 2 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. Solution:

CanGo company needs to start with just one ASRS system instead of purchasing two at this time since the company does not have the finances to offer 2 systems at the moment. The cost of ASRS system varies in size and how it functions within the warehouse. The cost just to purchase and install the system can be estimated from $125,000 to $200,000. 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 one ASRS system. If this system was implemented now, the company would not have the finances to actually start up the online gaming system, because they had used it on purchasing, installing and training new personnel on this system can be rearrange...
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