1.How does uncertainty affect the overall logistical performance cycle? Provide
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Question
1.How does uncertainty affect the overall logistical performance cycle? Provide an example.
2.Describe the key elements of the supply chain, and explain why the role of each is essential to the efficiency of modern day logistics operations.
3.Explain manufacturing and geographic postponement, and include examples and evidence.
4.Describe the movement of materials, products, services, and information through a supply chain.
5.Evaluate the benefits of integrative logistics to a firm, and explain how the focus shift from a functional orientation to a process orientated operation benefits a firm.
6.Contrast and compare the differences between anticipatory and responsive business model, providing examples of those differences
Explanation / Answer
1.How does uncertainty affect the overall logistical performance cycle? Provide an example.
Uncertainy introduces variances to the operation and this can decrease the flow or performance of the process.
For example, if we do not know the number of pallets we are receiving from a truck then the reciving department has no way to predict the time it will take to unload the truck and those materials are needed for production and this will cause manufacturing to be behind schedule making the order of the customer late.
2.Describe the key elements of the supply chain, and explain why the role of each is essential to the efficiency of modern day logistics operations.
Demand Management: This is essenatial because now the companies focus on meeting the needs of the customer instead of producing just "to produce" by doing this the supply quality is increase.
Communication: Effective communication keeps the supply chain efficient because all the department involve know exactly what is going on and if there is any issue you raise the flag and work together as a team to resolve it
Integration: Integration helps keeping low inentory costs by keeping the products on a minimal time on inventory. This is done by setting up a system that every one can access and review the information instead of just sending products to the warehouse where they are not needed for at least 1 or 2 months.
Collaboration: Collaboration creates stronger relation ships with the team members improving the team work and increasing business
3.Explain manufacturing and geographic postponement, and include examples and evidence.
Manufacturing postponement is an strategy to reduce risk and maximize the benefits, on manufacturing an example is when a manufacturer is building plastic chairs and makes them all white, when the orders of color chairs come he will just dye them according to the order, this way he does not have to worry on producing a certain amount of yellow chairs, he will just wait for the orders.
Geographic postponement has the same idea of reducing the risk and maximize the benefits but the example would be when a full storage order is kept on a warehouse in a strategic location and when orders are received the company delivers the order directly to the house of the customer. They knew the orders will come from certain area so they kept the product near by and ready.
4.Describe the movement of materials, products, services, and information through a supply chain.
Supply Chain is responsable for the movement of materials, this includes moving from suppliers, operations, and then delivering to the final customer.
Other activitites involve are: procurement, tranportation , receiving materials from carriers, ware housing, stock control, pick and pack, material handling, distribution, returns, waste disposal and communication with carriers.
Usually there is a logistics manager or a warehouse manager who will delegate this tasks to supervisors or workers and he will control the operation reporting to the general manager.
5.Evaluate the benefits of integrative logistics to a firm, and explain how the focus shift from a functional orientation to a process orientated operation benefits a firm.
More efficient operation, avoids duplicated effords, reduces waste of resources, better information, increase the speed of movement, easier planning, reduces uncertainty
6.Contrast and compare the differences between anticipatory and responsive business model, providing examples of those differences
Anticipatory business model most of the essential work is done through forecast which can be a risk if the forecast date is not accurate.
Example: A company that last year sold 20,000 cases of product A to its customer, starts producing anticipating the same order but when they are at 50% of production they hear from their customer they will only need 5,000 this year , what will this company do with the other 5000 cases they have already produced based on their iventory?
Responsive business model waits to perform the essential work until the sale is made
Same company from last example waits until the sale is made and instead of 20,000 cases their customer only wants 5000, that is ok for them because they have not produce any and have enough time to do it.
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