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JSW Steel Ltd: A Logistics Dilemma (B)

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Supplement to case W17363. In 2015, the assistant general manager at JSW Steel Ltd. (JSW), one of India's largest steelmakers, faced a dilemma. Should JSW continue to transport the company's end products to clients, or should JSW instead outsource the transportation to a third-party provider? Outsourcing would ensure timely delivery but would increase the cost. Another option was to pay an agency a premium for sharing information on the availability of Class I and Class II barge vendors. Class I barges were more reliable in terms of on-time and damage-free delivery, whereas Class II barges had a smaller capacity, were less reliable, and had a greater risk of goods being damaged, for which JSW could face both monetary and non-monetary losses. Although the Class I barges led to higher payoffs, the outsourcing option offered a fixed and relatively lower payoff. The assistant general manager's objective was twofold: to meet the customer requirements in time and to benefit JSW financially. How should he decide which option to pursue? Debmallya Chatterjee is affiliated with SP Jain Institute of Management & Research. Amol S. Dhaigude and Vishnu Kumar are affiliated with T.A. Pai Management Institute.

【書誌情報】

ページ数:6ページ

サイズ:A4

商品番号:HBSP-W18493

発行日:2018/8/22

登録日:2018/11/27

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