Question 1&2&3 Essay Example | Topics and Well Written Essays - 750 words

Question 1 - Essay Example This takes the form of controlling cargo storage and distribution via the most relevant ways. Product quality is fundamental to the undertaking of these activities, and therefore only the best company in terms of its logistics is chosen. c) Internal coherent and competent logistics should be accounted for in considering any given company. Such a company should be pursuing entries into newly opened market opportunities. Resource portfolio of the company is important in determining the strategy to adopt. Where resources are not adequate, internal strategies may be adopted, but this may consequently necessitate outsourcing some well-defined operations to a third party within the same level of logistics as the outsourcing company. d) A recent entrant company in the manufacturing industry makes a good choice. Such a company undertakes vigorous activities in its operations in a bid to improve the output level. The principle focus here is the product design, manufacturing process and the vo lume of product sales. Cargo handling in both storage and distribution of raw materials and final products is handled by an external party through outsourcing arrangements. Question 2 a) Quick response: This is a system in which decision pertaining to amounts of orders and times of replenishment are made by the retailer. On the other hand, POS data analysis is handled by the supply side. The importance of data analysis by suppliers is that it allows for an effective means though which future predictions can be made, consequently making it possible to make plans and schedules of production. A quick response is best suited for newly interacting retailer-supplier, where each is uncertain about the other. Inventories are controlled by the retailer, although POS data availed to suppliers can improve their operational performance. Lack of adequate resources to affirm the relationship between the retailer and the supplier necessitate quick response practices. b) Continuous replenishment: P OS data are made available to the vendors through this system. This provision is tailored towards the realization of shipment activities that are further necessary in the maintenance of a desired inventory characteristic. Shipping frequency is agreed upon at an earlier stage and all the guidelines to the system outlined in order to ensure that the inventory exhibits the required characteristics and amounts. This system strikes a balance between quick response and Vendor-Managed Inventory system. In this case lesser risks are taken relative to VMI, and at the same time, retailer-supplier relationship is well defined in this system as opposed to quick response system. c) VMI (Vendor-Managed Inventory system): Levels of inventory to maintain in the system are solely determined by the suppliers. Policies are formulated and implemented to ensure that the agreed upon inventory levels are observed. Replenishments in this system are taken care of by the vendors. This replenishment managemen t by the vendors does not take place automatically; rather, it is the retailers that charge the vendors with a full responsibility to do that. VMI system is complex, and a strong buyer-seller relationship need to be upheld. An effective VMI system realizes a general system saving, contrary to the other two types of retailer-supplier partnerships. Question 3 The manufacturing company is undergoing pressure from the retailer in regard to delivery and