You are the transportation manager of a manufacturing company producing construction materials and equipment in the UAE. Two main products that your company produces are pumps for concrete, which weigh 25 kg and sell for $1000 each, and isolation bricks, which weigh 0.5 kg and sell for $10 each. Although the isolation bricks are light, they require too much space. Your main customers of both products are located in Europe. To serve your customers in that region, you own and manage a big distribution center (DC in France. Your production plant in the UAE and the DC in France are strategically located with easy access to an airport, harbor, train station and main highways. You are preparing a report to the upper management about the transportation possibilities for these products to your DC in France. Discuss 3 possible transportation modes that you think are convenient to transport these products from your plant to your DC in France. Discuss the general advantages and disadvantages of each transportation mode. Which mode of transportation would you recommend for each product? Why?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Q4) You are the transportation manager of a manufacturing company producing construction materials and equipment in the UAE. Two main products that your company produces are pumps for concrete, which weigh 25 kg and sell for $1000 each, and isolation bricks, which weigh 0.5 kg and sell for $10 each. Although the isolation bricks are light, they require too much space. Your main customers of both products are located in Europe. To serve your customers in that region, you own and manage a big distribution center (DC in France. Your production plant in the UAE and the DC in France are strategically located with easy access to an airport, harbor, train station and main highways. You are preparing a report to the upper management about the transportation possibilities for these products to your DC in France.
- Discuss 3 possible transportation modes that you think are convenient to transport these products from your plant to your DC in France.
- Discuss the general advantages and disadvantages of each transportation mode.
- Which mode of transportation would you recommend for each product? Why?
- Discuss the effect of shipment frequency on transportation cost. What strategies can your company use to lower the shipment frequency? Also discuss the effect of these strategies on inventory cost.
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