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The Logistic Term

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Inventory
Inventory is held throughout the supply chain in the form of raw materials, work in process and finished goods. Changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. The Gransea company manages their inventory by increasing the amount of demand that can satisfied by having the product ready and available when customer wants it. In other saying that the Gransea company is manufacture the fertilizes. When the customer wants it, the Gransea will have the ready product and can direct send to customer. Sometimes they will repackaging the fertilizes in case the customer order to do it. Actually the Gransea company will purchase in large size. They will purchase about 5000 tans fertilizes from the supplier. Besides, the Gransea company will check their inventory levels every week. If their inventory is below 3000 tans, then they will do the replenishment every week. The quantity of inventory to order for replenishment is about 100 tans to 300 tans. They will make sure would not happen the stockout condition.
Transportation
Transportation entails moving inventory from point to point between different stages in the supply chain. Transportation choices have a large impact on supply chain responsiveness and efficiency. The Gransea company will get the material from the foreign country supplier by container and sometimes by bus kargo which is received at Port Klang. Then the company will load their material from the port to the factory by lorry. The Gransea company use the slower transportation modes for customer whose priority the price. The Gransea company transport the product by trucks. They choose this kind of modes because the trucks are relatively quick and very flexible mode of transport. Trucks can go almost everywhere. The second reason why they choose the trucks to transport their product is the

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