Proc 5850 Logistics Essay

1. KLF Electronics is an American manufacturer of electronic equipment. The guild has a soul manufacturing readiness in San Jose California. (20 points)KLF Electronics distributes its productions through five regional w arhouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current diffusion chance variable, the joined States is partiti oned into five major markets, separately of which is sponsor oneselfd by a single regional w behouse. Customers, typically retail outlets, develop items directly from the regional w argonhouses in their market area. That is, in the current scattering system, each customer is assigned to a single market and receives deliveries from one regional warehouse.The warehouses receive items from the manufacturing facility typically, it takes about two weeks to satisfy an night club placed by any of the regional warehouses. In recent years, KLF has seen a significant ontogeny in competition and huge pressure from their cust omers to rep course service levels and reduce termss. To improve service level and reduce costs, KLF would equivalent to consider an alternative dissemination schema in which the five regional warehouses are replaced with a single, central warehouse that result be in charge of all customer orders.Part A Describe how you would function a new logistics web consisting of only a single warehouse. out-of-pocket to increasing competition in the world, the bon ton has to advance its logistics system. To meet the eer increasing submits of the customers, the company is planning to form a single regional warehouse that get out be in charge of the customer orders. Logistics is accountable for the movement of people and materials in the organization. Logistics department of the company decides as to how and when, the tippy materials or other finished or semi-finished products should be moved and stored.If the company plans for a single warehousing system, then it is basically foc using on the centralized warehousing which is responsible for serving the whole market. The network leave behind be designed with the uphold of complete analysis of the companys operations. This will protagonist to design an efficient strategy for the company. The location and size of the warehouse will be decided. The transportation and facility costs will similarly be calculated. The cost set up will be right-hand(a)ly estimated. The network will consist of variant facilities like manufacturing center, vendor, distribution center and customers. There will also be a mutation of naked materials and finished products that flow among these facilities.Part B Provide an epitome of such(prenominal) an analysis what are the main steps?There are various steps that will be involved for designing a new logistics activity. In the first step, the currently run network in the organization should be analyzed. In the second step, the network optimization informationbase should be de signed and populated. After this in the third step, the alternatives for network design should be created. In the fourth step, the network optimization model should be adopted. In the fifth step, the tool for network optimization should be selected. In the one-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 select?The data that will be required for this design network is as follows1 A list of all the products of the company.2 The location of the customers.3 computer entrepot cost and transportation cost.4 Demands of the customer for each product.5 size of it of shipment by product.6 Cost of processing the order.7 Patterns of the orders by size, content and frequency.Part D What are the advantages and disadvantages of the newly suggested distribution strategy relative to the existing distribution strategy?The newly suggested strategy will help the company in a number of ways. It will help in speeding up the production activities of the company. It will reduce the facility cost of the company. The safety stock required in centralized system is also less. It will also reduce the inbound transportation costs. The disadvantages of such a system are that the head up time will incr liberalisation and it will become difficult for all the customers to easily approach a single warehouse. The activities will become complex and the outbound transportation cost will increase.2. As the Purchasing Manager in a manufacturing firm, you would be expected to identify and know various aspects related to transportation/dealings in order to aftermathively perform 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. discourse the following1. f reight Unitization,2. Space Layout,3. Storage Equipment Choices, and4. Movement Equipment Choices.There are various considerations spot handling the materials and care should be taken, while working over this activity. The following things need to be considered Load Unitization This is an important factor of consideration for material handling. Load unitization is the packaging and arranging 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 needs to be considered for its protective packaging. project pallets for packaging should not be used as they can handicap the product (Lock, 1998). Space Layout It is also an important point of consideration in material handling. The space layout should be such so that the materials can be handled in an easy and comfortable manner.The space layout should be according to the products and for the ease of the workers. Storage Equipment Choices It is to be considered as it is the greatest factor that contributes to the storage cost. The storage equipment choices include automated storage and convalescence systems, carousel storage and retrieval system, automated guided vehicle system and power & free conveyors. These equipment choices need to be considered to check the efficiency 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 profound forms of transportation are on hand(predicate) to the company?ii. Identify the legal forms of transportation.iii. Discuss the legal forms of transportation.iv. Provide one example for each legal form of transportation.There are various forms of legal transportation which involves re gulation of the operating rights. The forms of legal transportation are common newsboys, contract carriers, exempt carriers and underground carriers. Common carriers provide services under 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 avenue transportation. Contract carriers provide services at individually negotiated judge and operate under a regulatory authority.They own price freedom and have no service compulsion. They operate on the guidelines that there should be no rate discrimination between the customers. Example of contract carrier is rail transportation. Exempt carriers are those which are not conjectural for taxation and free from obligations. These are used for agricultural commodities in the United States. Example of exempt carriers is water transportation. Private carriers look after their throw sinceres transportation. They are not governed by cos t and service regulations. They cannot carry the goods of others, although more regulations have now permitted to do so. Example ofprivate carrier is air transport.3. Consider the supply chain for breakfast cereal grass. Discuss the competing objectives of the farmers who make the keen materials, the manufacturing breakdown of the company that makes the cereal, the logistics division of the company that makes the cereal, the merchandise division of the company that make the cereal, the distribution arm of the grocery chain that sells the cereal, and the manager of the individual grocery store that sells the cereal. (20 points)In the supply chain for breakfast cereals, everyone has its give birth competing objectives which inspire them to produce the product by great(p) his outstrip contingent effort. In the supply chain, the objectives of the farmers are to produce the best quality unsanded materials and earn maximum profit for him and his family. He wants to sell it at th e 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 demanded by the customer. Its main take is to acquire efficiency in production and to produce better than its competitors. The logistics division of the company also has certain competing objectives. It works with the objective of managing all the materials and workforce 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 attractive and should display the particular(a) 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 quantity of the product to the retailers and cover more 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 fulfill their requirements.4. You have been called in as a consultant to a large drugstore chain which has 24,000 bloodline line items. Explain how inventory potpourri could help this company to better control its inventory. (20 points)Inventory classification is very helpful for controlling the inventory when a company has such a wide variety of inventory line items. There are basically five different types of inventories that are fluctuating inventories, anticipation inventories, cycles/second inventories, transportation inventories and decoupling inventories. Fluctuating inventory will help in managing the freedom fighter d emand of the products. Anticipated inventory helps in managing the unpredictable demand of the product. round inventory helps in equating the consumption and production 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 flight order inventory. It will also help in timely management of the inventory.5. Discuss how each of the following helps to alleviate the bullwhip effect (20 points)c. E-Commerce and the Internetd. get Deliverye. Collabora tive forecastsf. Everyday low pricingg. Vendor-managed inventoryBullwhip effect is the enlargement of the demand fluctuations i.e. increases and decreases in demand. This is often caused by price fluctuations, rationing, misperceptions of feedbacks, ordination panics, forecasting errors etc. It can be alleviated with the help of various tools like internet, express delivery, cooperative forecasts etc. Internet and e-commerce helps in giving more accurate information to the providers about the demand of a product. It helps in prevention of deformation and wrong communication of the demand related information. It also assists in reducing the lead time, as it eases the order processing activity. declaim 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 and to the ultimate customers. In collaborative forecasts procurement, product management and sales participate.Collaborative f orecasts 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 monitoring the downstream demand. With this, the supplier can make a good and effective decision related to various activities like what quantity should be shipped for the customers and what quantity should be kept 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 estimation and alleviates the bullwhip effect.