Proc 5850 Logistics Essay

1. KLF Electronics is an American resurrectr of electronic equipment. The party has a maven manufacturing facility in San Jose California. (20 points)KLF Electronics distributes its products through atomic number 23 regional wargonhouses located in Atlanta, Boston, Chicago, D enti avowas, and Los Angeles. In the current dispersion system, the United States is partiti oned into flipper major markets, from each one of which is served by a oneness regional wargonhouse. Customers, typically retail outlets, receive items directly from the regional w arhouses in their market bea. That is, in the current distribution system, each guest is assigned to a star market and receives deliveries from one regional w atomic number 18house.The w atomic number 18houses receive items from the manufacturing facility typically, it takes about ii weeks to satisfy an vow placed by any of the regional warehouses. In upstart years, KLF has seen a significant affix in competition and huge pre ssure from their customers to ameliorate work levels and reduce address. To improve assistance level and reduce exists, KLF would like to bowl over an pick distribution dodge in which the fiver regional warehouses are replaced with a undivided, central warehouse that leave alone be in charge of all customer set outs.Part A Describe how you would mark a young logistics profits populateing of unaccompanied a single warehouse.Due to change magnitude competition in the world, the party has to state its logistics system. To meet the ever increasing aims of the customers, the caller-up is planning to course of study a single regional warehouse that leave be in charge of the customer come ins. Logistics is liable for the motility of people and naturals in the organization. Logistics department of the society decides as to how and when, the blunt hooeys or other washed-up or semi-finished products should be moved and stored.If the company plans for a single w arehousing system, then it is basically counsel on the centralized warehousing which is accountable for serving the whole market. The interlock allow for be designed with the cooperate of get along analysis of the companys operations. This departing help to design an efficient strategy for the company. The location and size of the warehouse ordain be decided. The battery-acid and facility bells will as well as be calculated. The cost set up will be properly estimated. The ne iirk will consist of mingled facilities like manufacturing place, vendor, distribution center and customers. at that place will as well be a variety of raw materials and finished products that flow among these facilities.Part B go forth an out thread of such an analysis what are the principal(prenominal) steps?There are various steps that will be involved for designing a new logistics activity. In the first step, the currently operate network in the organization should be analyzed. In the sec ond step, the network optimisation database should be designed and populated. After this in the third step, the alternatives for network design should be created. In the fourth step, the network optimisation model should be adopted. In the 5th step, the tool for network optimization should be selected. In the sixth step, the network optimization should be implemented. In the seventh step, the alternative network designs will be evaluated. In the last and the final step, the reconfiguration costs for the network will be analyzed.Part C Specifically, what data would you need?The data that will be required for this design network is as follows1 A tendency of all the products of the company.2 The location of the customers.3 Warehousing cost and merchant vessels cost.4 Demands of the customer for each product.5 coat of shipment by product.6 bell of processing the order.7 Patterns of the orders by size, bailiwick and frequency.Part D What are the advantages and disadvantages of th e freshly suggested distribution strategy relative to the real distribution strategy?The newly suggested strategy will help the company in a number of ways. It will help in speeding up the exertion activities of the company. It will reduce the facility cost of the company. The safety stock required in centralized system is similarly less. It will also reduce the inbound transportation costs. The disadvantages of such a system are that the lead time will increase and it will become difficult for all the customers to easily approach a single warehouse. The activities will become complex and the outward-bound transportation cost will increase.2. As the Purchasing Manager in a manufacturing firm, you would be expected to identify and kip d suffer various aspects relate to transportation/ commerce in order to effectuateively action your job. Today, during the staff meeting, your boss asked you for advice on two aspects of transportations (20 points)a. What are the major shapes when handling materials?i. controvert the pastime1. Load chunking,2. dummy Layout,3. transshipment center Equipment Choices, and4. Movement Equipment Choices.There are various considerations while handling the materials and care should be interpreted, while working over this activity. The following things need to be considered Load Unitization This is an important agentive role of consideration for material handling. Load unitization is the advancement and arrangement of the item or items in a particular manner that can be handled as a unit. It should be considered that the items are banded in a securable manner. In this, the physical packaging of the product ask to be considered for its protective packaging. Overhang pallets for packaging should not be used as they can damage the product (Lock, 1998). Space Layout It is also an important point of consideration in material handling. The home layout should be such so that the materials can be handled in an easy and comforta ble manner.The space layout should be according to the products and for the ease of the workers. transshipment center Equipment Choices It is to be considered as it is the greatest factor that contributes to the retentiveness cost. The storage equipment choices include automate storage and retrieval systems, carousel storage and retrieval system, automated guided vehicle system and power & bare conveyors. These equipment choices need to be considered to check the power and cost effectiveness of the logistics network. Movement Equipment Choices it is also an important consideration in the material handling and it will help in allocating the movement of the materials for transport. The equipment choices help in managing the movement of the equipment for storage and transport.b. What court-ordered forms of transportation are available to the company?ii. Identify the jural forms of transportation.iii. Discuss the intelligent forms of transportation.iv. Provide one example for each legal form of transportation.There are various forms of legal transportation which involves regulation of the operating rights. The forms of legal transportation are common crew cuts, get hold of carriers, exempt carriers and esoteric carriers. Common carriers erect services chthonian closed regulation, as per the published tariff. They operate in a particular geographical area and for a specific commodity. Example of common carrier can be highway transportation. Contract carriers provide services at individually negotiated rates and operate under a regulatory authority.They present set throw in the toweldom and have no service compulsion. They operate on the guidelines that there should be no rate discrimination amidst the customers. Example of contract carrier is rail transportation. Exempt carriers are those which are not liable for taxation and free from obligations. These are used for agricultural commodities in the United States. Example of exempt carriers is pissing transportation. Private carriers look after their own goods transportation. They are not governed by cost and service regulations. They cannot carry the goods of others, although many regulations have now permitted to do so. Example ofprivate carrier is air transport.3. Consider the affix orbit for break lush caryopsis. Discuss the competing objectives of the farmers who involve the raw materials, the manufacturing naval element of the company that exculpates the cereal, the logistics division of the company that makes the cereal, the marketing division of the company that make the cereal, the distribution arm of the market place chain that sells the cereal, and the manager of the individual securities industry store store that sells the cereal. (20 points)In the put up chain for breakfast cereals, everyone has its own competing objectives which inspire them to produce the product by giving his opera hat come-at-able effort. In the supply chain, the objectives of the farmers are to produce the best bore raw materials and earn maximum profit for him and his family. He wants to sell it at the best possible price and puts all his efforts to produce the cereals. The competing objectives of the manufacturing division of the company are that they should produce the quality and type of product that is expected by the customer. Its main suffer is to acquire efficiency in product and to produce better than its competitors. The logistics division of the company also has certain competing objectives. It kit and boodle with the objective of managing all the materials and manpower related activities.It handles the storage of materials in an efficient manner. The worry of transportation, purchasing of raw materials, storage and supply of finished products are the main aim of the logistics division. The objectives of the marketing division of the company will be to market the product in an attractive and effective manner. The packaging should be a ttractive and should display the special qualities of the products. It also has the objective of deciding the pricing and promotional activities of the product. The objective of the distribution arm of the grocery chain is to distribute maximum sum of money of the product to the retailers and cover much targets as compared to their competitors. The objective of the grocery store that sells the cereal will be to sell the best quality products to the customers. They also serve the customers and fill up their requirements.4. You have been called in as a consultant to a large chemists chain which has 24,000 entry line items. develop how gillyflower mixed bag could help this company to better control its arsenal. (20 points) scrutinise classification is very helpful for controlling the scrutinise when a company has such a wide variety of inventory line items. There are basically five different types of inventories that are fluctuating inventories, foreboding inventories, cycle inventories, transportation inventories and decoupling inventories. Fluctuating inventory will help in managing the untypical demand of the products. Anticipated inventory helps in managing the unpredictable demand of the product.Cycle inventory helps in equating the consumption and exertion of the products. Transportation inventories are managed, where the time taken to transport a product is more and so meet the demands, it is maintained. Decoupling inventory is maintained to cover up the increasing demand of the product or the increasing purchases of the product. Inventory classification will help the company in inventory control, as, it will help in proper planning of the production system as materials will be available wherever and whenever required. It will also help in satisfying the orders of the customers as per the commuted date. It can also help in solving the problem of rush order inventory. It will also help in timely management of the inventory.5. Discuss how each o f the following helps to gentle the bullwhip effect (20 points)c. E-Commerce and the internetd. Express Deliverye. collaborative forecastsf. nonchalant low pricingg. Vendor-managed inventoryBullwhip effect is the enlargement of the demand fluctuations i.e. increases and decreases in demand. This is oftentimes caused by price fluctuations, rationing, misperceptions of feedbacks, ordering panics, anticipation errors etc. It can be relieved with the help of various tools like internet, sway delivery, collaborative forecasts etc. Internet and e-commerce helps in giving more accurate randomness to the providers about the demand of a product. It helps in prevention of deformation and wrong parley of the demand related information. It also assists in reducing the lead time, as it eases the order processing activity. Express delivery helps in reducing the demand variance and also reduces the lead time. It refers to timely and very fast delivery of the products to the wholesalers an d to the ultimate customers. In collaborative forecasts procurement, product management and sales participate.Collaborative forecasts help the stakeholders in arriving at a particular demand forecast and alleviate the bullwhip effect. Everyday pricing also alleviates the bullwhip effect. There are certain demand hikes, which are created by periodic promotions and this leads to increase in demand fluctuations. Everyday pricing helps in preventing the increasing demand fluctuations and alleviates the bullwhip effect. Vendor managed inventory is helpful for the supplier as, it assists in supervise the downstream demand. With this, the supplier can make a good and effective purpose related to various activities like what bill should be shipped for the customers and what quantity should be unbroken on hand. So, with the help of vendor managed inventory, the supplier does not have to depend upon the order data. Thus, the supplier does not have to rely on order data for demand estimati on and alleviates the bullwhip effect.