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Compare And Contrast The Fragmented And Unified Logistical Structure

Decent Essays

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 …show more content…

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

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