...Question – 1, 4 Chapter 3 – Study Question – 2, 4 Chapter 2 Question 1: Illustrate a common trade-off that occurs between the work areas of logistics. According to Bowersox (2012) “trade-offs between procurement, manufacturing, and logistics is to understand that the trade-off is between the cost and risk associated with anticipatory manufacturing and the loss of economy of scale resulting from introducing flexible procedures”. The illustration of trade-off that occurs between the functional areas of logistics, the common trade-offs discussed in our textbook are: Order processing – main importance to meet customer requirements Inventory –achieving customer service with lowest inventory requirements Transportation - costs to deliver the products directly to customers Warehousing – materials handling and packaging Facility network – facility required to accomplish logistic effort (function) The above functional areas are basically costs involved in logistic trade-offs to combine a system solution for integrated logistics where the main function is the facility network to achieve logistics. Without these trade-off cost, the nature of the supply chain will not be possible. Tradeoff is mainly a situation of exchange and in supply chain it is not an exception. The main objective is to increase customer satisfaction and it is necessary to accept the trade-off of work areas in logistics. Ref: Bowersox. Supply Chain Logistics, 4th Edition. McGraw-Hill Learning...
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...management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally." A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Supply chain management is typically viewed to lie between fully vertically integrated firms, where the entire material flow is owned by a single firm, and those where each channel member operates independently. Therefore coordination between the various players in the chain is key in its effective management. Cooper and Ellram [1993] compare...
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...Chapter 1 SCM takes into consideration every facility, its objective is to be efficient and cost effective, it encompasses activities at many levels, and provides competitive advantage. System approach – system-wide strategy minimizing costs over the entire supply chain Challenge of SCM: 1. Strategies cannot be determined in isolation. 2. Minimize cost while maintaining system-wide service levels. 3. Uncertainty and risk Global optimization is complex because facilities are dispersed over a large area, different facilities have different goals, it’s a dynamic system; changes over time due to changing business and customer environment, seasonal fluctuations, competitors, trends, etc. Sources of uncertainty: lead-time, demand, transportation times, component availability, etc. Approaches to manage risk: 1. Build redundancy 2. Use info to better sense and respond to disruptions 3. Incorporate flexibility 4. Improve supply chain processes to including risk assessment measures Building blocks in effective supply chain: strategic partnerships, info sharing, outsourcing, e-business. Strategic issues – deal with long term goals (number, location, capacity of facilities) Tactical issues – quarterly/yearly basis (transportation, purchasing, inventory policies) Operational – day-to-day (truck-loading, scheduling, lead-time quotations) Supply chain disruptions: * Part shortages * Roll-out problems * Order change by customers ...
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...Chapter 3 Supply Chain Drivers and Metrics True/False 1. The major drivers of supply chain performance are facilities, inventory, transportation, and information. Answer: True Difficulty: Moderate 2. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate 3. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate 4. The two major types of facilities are distribution sites and storage sites. Answer: False Difficulty: Moderate 5. Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. Answer: True Difficulty: Moderate 6. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers. Answer: True Difficulty: Easy 7. Information is potentially the biggest driver of performance in the supply chain even though it has little impact on each of the other drivers. Answer: False Difficulty: Easy 8. A facility with little excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity. Answer: True Difficulty: Easy 9. A facility with little...
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...1.) In an Anticipatory Model the manufacturer produces products based on forecasts in the market, and the distributers and retailers purchase their inventory based on forecasts and promotional plans. This causes differences between the firm’s original plans and what they actually ended up doing, because the forecasts were usually wrong. Most of the work in an Anticipatory Model is done in anticipation of future events, which made the model highly risky for businesses. The Responsive Business Model however seeks to get away from the idea of relying on forecasts, and rely on planning and exchanging information among companies in the supply chain. This Responsive Model has a different sequence of events that move business. For example, the Responsive Model has selling as the first task where the Anticipatory Model has forecasting as the first task. One of the main differences as to why the Responsive Model is so popular among supply chain strategy is the ability it offers for customers to customize products on smaller orders. In traditional models like the Anticipatory Model, the customer had no choice or power and only had the option of buying or not buying. The Responsive Model gives more power to the customer, because it is allowing them to make decisions. 2.) The similarity between procurement, manufacturing support, and customer accommodation is all three make up the logistical operations of a business. These three components are the combined logistical support units...
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...Chapter 3 Supply Chain Drivers and Metrics True/False 1. The major drivers of supply chain performance are facilities, inventory, transportation, and information. Answer: True Difficulty: Moderate 2. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate 3. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate 4. The two major types of facilities are distribution sites and storage sites. Answer: False Difficulty: Moderate 5. Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. Answer: True Difficulty: Moderate 6. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers. Answer: True Difficulty: Easy 7. Information is potentially the biggest driver of performance in the supply chain even though it has little impact on each of the other drivers. Answer: False Difficulty: Easy 8. A facility with little excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity. Answer: True Difficulty: Easy 9. A facility with little...
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...Case Hazel: Questions: 1. In what ways are Hazels customers most likely to judge the quality of her lawn careservices? ~ Hazels customers will most likely judge the quality of her lawn care services by thequantity of Hazels other customer, how efficient she does her work and her credibility. 2 . Hazel is the operations manager of her business . Among her responsibilities areforecasting inventory management, scheduling, quality assurance, and maintenance . a. What kinds of things would likely require forecasts? ~ Weather and climate condition would likely require forecasts as well as thedemand for lawn mowing services.b. What inventory items does Hazel probably have? Name one inventory decision shehas to make periodically. ~ The inventory items that Hazel probably has are rake, grass cutter, fertilizers,mower, seeds, and other lawn mower equipments.c. What scheduling must she do? What things might occur to disrupt schedules andcause Hazel to reschedule? ~ It depends upon the demand of the customers. Basically, Hazel will accept one totwo customers five times a week. She will do her lawn services approximately once amonth. The things that might occur to disrupt schedules and will cause Hazel toreschedule are fortuitous events such as storms, floods, earthquake and othercalamities.d. How important is quality assurance to Hazels business? Explain. ~ The quality assurance to Hazels business is indeed very important. It willdetermine...
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...A PROJECT REPORT On “WORKING CAPITAL MANAGEMENT IN HCL” UNDER THE GUIDANCE OF: KSHITIJ MATHUR SUBMITTED BY: ARJUN SHARMA ROLL NO.: 1121000935 Specialization: Finance INSTITUTE OF MANAGEMENT TECHNOLOGY (CENTRE FOR DISTANCE LEARNING) GHAZIABAD PROFORMA (TO BE SENT ALONG WITH PROJECT REPORT) Name _________________________________ (In Block Letters) Enroll. No. ___________________ Choice of Venue for Viva-Voce (Tick any one of the following venue) 1. IMT-CDL, Ghaziabad 2. IMT-CDL, Kolkata (Regional Center) 3. IMT-CDL, Hyderabad (Regional Center) 4. IMT-CDL, Mumbai (Regional Center) Mobile No. _____________________________ Check List 1. Photocopy of approved synopsis 2. Photocopy of evaluation sheet (if attached with synopsis) from IMT - CDL 3. Photocopy of identity card issued by IMT – CDL 4. Acknowledgement letter from Project Guide Designation & Office Address _______________ CERTIFICATE This is to certify that. Arjun Sharma a student of IMT–CDL Ghaziabad has completed project work on “Working Capital Management in HCL” under my guidance and supervision. I certify that this is an original work and has not been copied from any source. Signature of Guide Kshitij Mathur Date ACKNOWLEDGEMENT I have prepared this study paper for the “Working Capital Management in HCL”. Quite frankly, I have derived the contents and approach of this study paper...
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...Assignment #1: Chapter 1 Questions 1.1 Did it surprise you that logistics has such an important economic impact? Why or why not? I was actually not surprised at all. I have learned that shipping industry has played a major role in our economy and that foreign trade accounted for about 10% of US GPD. As of today about 90% of America’s overseas foreign trade is moved by ships and according to recent projections the foreign trade will be up to 35% of our GPD by 2020. 1.2 Distinguish between possession, form, time, and place utility. Possession utility refers to the value or usefulness that comes from a customer being able to take possession of a product and can be influenced by the relevant payment terms. Form utility refers to a product’s being in a form that (1) can be used by the customer and (2) is of value to the customer. Time utility refers to having products available when they are needed by customers while place utility refers to having products available where they are needed by customers. 1.3 How does logistics contribute to time and place utility? Logistics contributes to time utility by recognizing that different products have different sensitivities to time. A great scenario would be, a three-day late delivery of cupcakes likely has more serious consequences than a three-day late delivery of a box of notebook paper. For place utility, logistics facilitates products being moved from points of lesser value to points of greater value. 1.4...
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... !! ! ! ! !! ! ! ! ! !! ! !! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! Introduction to OM Diff between products and services: • Tangibility, measurement of productivity, quality evaluation, level of customer involvement, definition consistency, ability to inventory, patentability Competition in OM • Product and service design, process and capability, quality, inventory and materials, quick response and flexibility, supply chain management, sustainability Productivity: Performance measurement of the effective use of resources ∝ 1/cost Goods/Services produced Inputs used to produce them Flow Time (FT): Time taken for unit to flow through entire process = 1/Inventory Turns Flow Rate (FR): Throughput/output rate • Constrained by demand rate, process capacity and supply rate Inventory: Average no of flow units in the process Little’s Law • Condition: The system is in steady state Process Design/Selection • Decision on the way production of goods and services will be organised and transformed ! Trade-off: An exchange where you give up one thing in order to get something else that you also desire. Operations function: Part of an organisation that is responsible for its processes that design, manage, improve and deliver its products/services to its customers Role of OM • Improve productivity, matching supply with demand, improving efficiency, manage trade-offs Product Design, Process Design, Capacity Planning ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ...
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...Case 5-2: North Country Auto- teaching notes (case facts in red) Internal Environment – key facts about the Company • North Country Auto is a: Franchised dealer & factory authorized service centre– 3 manufacturers (SAAB, Ford, VW) o Began operations in 1968 o 5 departments (new car sales, used car sales, service, body, and parts) o Situated in upstate NY- pop. 20,000, served two nearby towns of 4,000 people as well as rural areas covering a 20 mile radius • George Liddy & Andrew Jones – equal share ownership in the corporation and involvement in operations (Mr. Jones one of the founders), Mr. Liddy (since 1988)(front end), Mr. Jones (back end)) External Environment – 5 forces – Threat of New Entrants –HIGH/LOW o Proliferation of new entrants o 6 acre lot & 25,000 sq ft facility o Costly to be a franchised dealer - Each manufacturer used a different computer system for tracking inventory and placing new orders and required dealers to maintain an adequate service facility with a crew of trained technicians and spare parts inventory, level of investment per product line, o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales Rivalry among Competitors –HIGH o Aggressive discounting and small margins o depressed sales (vehicles) o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales o multiple franchises common in the 1980s o Industry parts...
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...|1 |Which of the following is NOT a strategy for managing supply? | | | | |A) |Developing complementary services | |B) |Using part-time employees | |C) |Forecasting demand | |D) |Scheduling employee shifts | |2 |Which of the following is NOT a measure of the capacity of a restaurant? | | | | |A) |number of tables | |B) |number of waiters | |C) |number of items on the menu | |D) |number of chefs | |3 |What is meant by the term ‘capacity’? ...
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...Managing Operations, Information, and Knowledge of Gate Gourmet Words 3,000 TABLE OF CONTENTS Page Abstract 4 1.0 Introduction 5 2.0 About Gate Gourmet 5 3.0 Systems that enable efficient use of input resources and their impact on output of goods and services supplied by Gate Gourmet 6 3.1 Transformation Process 6 3.2 Production Techniques 6 1. Cuisine Sous-Vides 6 2. Hot Filling 6 3. Modified Atmosphere Packing 6 4. Food Safety Checks and Assurance Systems 7 5. Gate Serve Provisioning services 7 6. Post Flight Aircraft Stripping 7 2. Existence of Trade-offs within Gate Gourmet and challenges faced by following this approach 8 4.0 Supply Chain Management issues and supplier selection 9 4.1 Supply Chain 9 2. Supply Chain Management 9 3. Impact of integrated system in the management of suppliers and supplier selection 9 1. Alpha Flight Group 9 2. Pourshins 10 3. Supplair 10 4. DeSter 10 5. Potmstudios...
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...profits, we can see that it is a very big company, and pretty much the biggest one. Today there are a high amount of people that would buy something they need online rather than shopping, as of losing time, while they can do something else. 1. Describe Amazon’s product service mix. Which areas of Amazon’s operations are characteristic of a manufacturing organization? Which areas are characteristic of a service organization? How do both areas relate to the marketing of Kindle and Kindle-related products? The four characteristics that would show the differences between manufacturing and service organization are: • Goods. Here a key difference between service firms and manufacturers is the tangibility of their output. In this case the fact that Amazon sells products and goods to customers, are things tangible so we can see and touch would make it a manufacturing organization. • Inventory: Service firms, do not hold inventory and manufacturers produce goods for stock, with inventory levels aligned to forecasts of market demand. Actually some of the goods and services that customers buy through Amazon are directly from manufactures, so it doesn’t require a high inventory cost. • Customers Service: Service firms generally produce a...
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...is dedicated to responsiveness. The article elaborates on this when talking about Zara and Gap. While retailers such as Gap reduce costs by outsourcing manufacturing, Zara owns its entire supply chain, from manufacturing through distribution centers to retail outlets. Because of its focus on fashionable, trendy products, Zara procures capacity from its fabric suppliers but does not commit necessarily to a specific color or print until it has a clear picture of consumers’ preferences. Retail stores provide direct feedback to the company headquarters through its IT infrastructure, allowing designers to identify trends and respond accordingly. Using this strategy, Zara was able to reduce time to market for new styles to three to four weeks. Our team also learned the difference between traditional operations strategies that have been focused on efficiency vs. those that have been focused on responsiveness. In operational efficiency, the firm focuses on low-cost strategies across all functional areas. This includes supplier selection, manufacturing, product design, and distribution and logistics. Typically, in such a strategy, production and distribution decisions are based on long-term forecasts, inventory of finished goods is positioned close to market demand, and supplier selection is based mostly on component costs. Hence, sourcing from low-cost countries is often the norm. By contrast, a responsive strategy focuses on speed, order fulfillment, sercice level, and customer satisfaction...
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