A framework for capacity planning and capacity relocation in the wine supply

Agenbag, Gert Andries (2018-12)

Thesis (MEng)--Stellenbosch University, 2018.

Thesis

ENGLISH ABSTRACT: South Africa is classified as a key player in the global wine industry. The wine industry however is under threat as it is experiencing different challenges which it must overcome. These challenges are placing the wine industry under great financial pressure. This leads to the following key research question for this study: How can an approach be developed for supporting better long-term capacity planning decision making in the wine supply chain? A Pragmatism research philosophy was used for this project which led to an inductive research approach being followed since the project was not based on a pre-existing theory, but a new theory was developed by analysing data. The research method that was mainly used for the project is mixed method seeing that the required data was obtained by means of structured interviews and physical observations. A combination of case study and design science research strategy was used. Orange River Cellars (Oranje Rivier Wyn kelders-OWK) was used as a case study which contributed to the development and testing of the framework. The focus of the literature study was on capacity planning decisions of wine cellars within a supply chain network. The aim was to get a clear understanding of the supply chain networks and current research regarding capacity planning and supply network design in the wine industry. The main databases that were used consisted of Scopus and Google Scholar. It was found that limited research has been done on capacity planning, facility relocation and supply chain network design regarding the wine industry. Thus, the gap was identified as the lack of capacity planning of supply chain networks and facility relocation in the wine industry. Next the conceptual framework was developed to capture the considerations and the approach for facility relocation planning and capacity planning in the wine industry. The framework aids in obtaining a good understanding of supply chain network seeing that with each stage a better understanding of the supply chain network is formed. For this framework the profitability of the cellars is first determined. With that information the most economical allocation of capacity in the supply chain is then determined as well as the relocation cost and capacity of the cellars that are no longer profitable. The framework was then applied to the OWK case study. This case study consisted of a wine corporation that is situated in the Northern Cape. OWK has 6 cellars that receive grapes to produce either juice or wine. The amount of grapes received by the cellars are decreasing each year which caused OWK to ask the question of whether all the cellars are still profitable. The framework concluded, that for the OWK case study, Cellar5 is not profitable anymore. The framework further recommends that Cellar5 be closed and the supply of grapes moved to Cellar4. The yeast tanks should also be moved to Cellar4 seeing that all the cellars experience a peak in the supply of grapes at approximately the same time during the harvest.

AFRIKAANSE OPSOMMING: Suid-Afrika word as 'n sleutelspeler in die globale wynbedryf geklassifiseer. Die wynbedryf word egter bedreig aangesien dit verskeie uitdagings ervaar wat oorkom moet word. Hierdie uitdagings plaas die wynbedryf onder groot finansiële druk wat aanleiding gee tot die volgende navorsingsvraag: Hoe kan 'n benadering ontwikkel word om beter langtermyn kapasiteitsbeplanning in die wynvoorsieningsketting te ondersteun? Die kern navorsingsfilosofie van die projek was hoofsaaklik pragmaties en daar is besluit om ‘n induktiewe navorsingsbenadering te volg. Hierdie navorsingsbenadering is gevolg aangesien die projek nie op 'n bestaande teorie gebaseer was nie en 'n nuwe teorie ontwikkel moes word deur verskeie data te analiseer. Die navorsingsmetode wat hoofsaaklik vir die projek gebruik is, is gemengde metode aangesien die vereiste data verkry is deur middel van gestruktureerde onderhoude en fisiese waarnemings. 'n Kombinasie van gevallestudies en ontwerpwetenskap navorsingstrategie is gebruik. OWK is as gevallestudie gebruik wat bygedra het tot die ontwikkeling en toetsing van die raamwerk. Die fokus van die literatuurstudie was op kapasiteitsbeplanningsbesluite van wynkelders binne 'n voorsieningsketting netwerk. Die doel was om 'n duidelike begrip van die voorsieningsketting netwerke te kry en bestaande navorsing rakende die wynbedryf te bestudeer. Die hoofdatabasisse wat gebruik is, bestaan uit Scopus en Google Scholar. Daar is gevind dat beperkte navorsing gedoen is oor kapasiteitsbeplanning, fasiliteitsverplasing en voorsieningsketting-netwerkontwerp ten opsigte van die wynbedryf. Die gaping is dus geïdentifiseer as die gebrek aan kapasiteitsbeplanning van voorsieningsketting netwerke en fasiliteitsverplasing in die wynbedryf. Volgende is die konseptuele raamwerk ontwikkel om die oorwegings en die benadering tot fasiliteitsverbeteringsbeplanning en kapasiteitsbeplanning in die wynbedryf vas te lê. Die raamwerk help om 'n goeie begrip van die voorsieningsketting netwerk te verkry, aangesien daar met elke fase 'n beter begrip van die voorsieningsketting netwerk gevorm word. Vir hierdie raamwerk word die finansiële lewensvatbaarheid van die kelders eers bepaal. Met die inligting word die mees ekonomiese toewysing van kapasiteit in die voorsieningsketting bepaal, sowel as die verhuiskoste en kapasiteit van die kelders wat nie meer finansieel lewensvatbaar is nie. Die raamwerk is dan toegepas op die OWK gevallestudie. Hierdie gevallestudie bestaan uit 'n wynkorporasie wat in die Noord-Kaap geleë is. OWK het 6 kelders wat druiwe ontvang om sap of wyn te produseer. Die hoeveelheid druiwe wat die kelders ontvang, verminder elke jaar, wat veroorsaak het dat OWK die vraag vra of al die kelders steeds finansieel lewensvatbaar is. Die raamwerk het tot die gevolgtrekking gekom dat kelder5 vir die OWK gevallestudie nie meer finansieel lewensvatbaar is nie. Die raamwerk beveel verder aan dat kelder5 gesluit word en die verskaffing van druiwe na kelder4 verskuif. Die gistenks moet ook na kelder4 verskuif word, aangesien al die kelders ongeveer dieselfde tyd gedurende die oes 'n hoogtepunt in die verskaffing van druiwe ervaar.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/104827
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