9.Define what is meant by a cost trade-off. Do you believe that this concept is workable? Why or why not?
Cost trade-off occur when there is a change in some activities change in the organization. These activities can either increase or decrease the costs. Integration of all activities should minimize distribution costs in a manner that supports an organization’s customer service objectives. There are different levels of cost trade-offs; within the distribution components, between distribution components, between company functions, between the company and external organizations.
Yes, cost trade-off can be good and workable. For example, between company functions if the company has a trade-off for lower finished goods stock, then the inventory and storage cost will be reduced for the distribution sector but for the production department, there can be situation where the
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Fragmented logistics structure is where multiple departments handle the logistics activities in the organization. In such a structure the functions of each department tend to concentrate in their own areas and there is isolation from rest of the departments. Hence, this structure has communication issues which can reduce the efficiency of the overall system.
Whereas, unified logistical structure is one in which all the different departments handling the activities combine into one single department and manage the activities. In this structure it emphasizes the need for improvement, the planning and control of overall activity as one. Hence, there is better c-ordination and good communication in the department.
11. From a logistics perspective, how is network organizational design manifested in terms of relevancy, responsiveness, and flexibility? (give examples)
From a logistics perspective is designed in such a way that the organizational design reveals the relevancy, responsiveness and
There are many trade-offs for each of the decisions that a company makes within all three types of these cost types when quality consideration is used. If the company decides to put more time into training employees properly on operating machines and
4. Logistics is a critical part of a supply chain that is an integration of the logistics systems in all the organizations
Cost has traditionally being a major influence on all business as all businesses desire to achieve maximum efficiency as it is a vital factor for businesses in order to reach the ultimate goal and success. Businesses sees cost as the key value to success and aims to become as much cost efficient as possible, by implementing a cost-leadership style approach to the operations variable cost or fixed cost ,while maintain the expected profit margin, business is able to gain a competitive advantage over their competitors in their target market. This is called cost-based competition. By determining the break-even point and applying cost saving strategies, to reducing cost, businesses who apply cost-based competition in their operations is able to maximize the profits and lead business to success.
The United States Army is a hierarchical structure when it comes to chain of command. To fight a war the U.S. Army deploys a variety of specialized systems and soldiers to the battlefield. To do this the US Army has adopted the divisional organizational structure. The Army is divisional but is structured as a functional structure; Army, Corps, Division, Brigade, battalion, company, platoon, and squad (Powers, 2012).
A fundamental part of society since the beginning of time has been the trade of information, cash, and physical goods between at least two separate parties. Whether it is amongst consumers, businesses, or between a business and a consumer, it has always existed in some form. As time passes, our knowledge and technology have advanced therefore creating a stronger supply chain process. A basic logistic service, a means of transportation and storing are what enable trade. In order to have an effective supply chain process, the supporting needs need to be accessible and effective for all parties involved. In the book Logistics Clusters by Yossi Sheffi, he thoroughly explains the current
1.Critique the various pros and cons of the variable costing proposal that were presented in the meeting. What arguments would you add?
Since logistics is one of the non-core activities, the present logistics system needs to be analyzed to determine the most efficient and effective strategy that will be aligned with the companies objectives.
For our current context, we are dealing logistics as limited to the warehousing, transport and integral management part of the whole supply chain of an organization. In any small to big business, logistics holds a crucial importance of cutting costs and avoiding waste of materials and the golden time resource (Anon., 2012). In our earlier assignment, we mentioned five critical global changes which are bring vital transform in the logistics functionalities of the enterprises. These changes were analyzed for the current period scenario and the coming decade in the organizations regarding Australian Context.
In today’s world, competence is taking on new dimensions. The ability to compete is being determined by the degree of responsiveness to customers & key issues handling. How fast you deliver the goods/ products, what the price paid by customers & what value customer is getting throughout the service is considered in a schematic & ordered way. Markets are quick demanding & customization of each logistics activities is essential for each customer, & has become the essential factor in logistics management.
A) The classification between relevant and irrelevant cost is considered important in the context of managerial decision making because it involves two or more alternatives and the prime focus of analysis is to find out which alternative is more profitable.
Discuss how the use of various IT applications contribute to enhancing efficiency of the logistics processes. Are there any areas which could be further developed using IT?
Design for logistics is a series of concepts in the field of supply chain management involving product and design approaches that help to control logistics costs and increase customer service levels. The concepts include the three key components, Economic packaging and transportation, Concurrent and parallel processing, and Standardization.
The organisation is committing to improving the logistics system to make delivery more efficient; even though the precise figures are not known yet, the intention is there nevertheless. While the logistics in the organisation plays a very important role for product movement to different manufacturing sectors (within the organisation) and to customers
With a particular finished focus to outline the perfect framework, I would firstly review the present logistics structure. It is fundamental to consider the adequately existing structure if any as this would help me to evaluate its lacks, central focuses, costs and
The logistics department: is headed by the logistics coordinator and assisted by Field logistic Coordinators is further divided by four sub-departments: transport, workshop, warehousing and procurement.