1. KLF Electronics is an American maker of electronic equipment. The company has a individual fabrication installation in San Jose California. ( 20 points )

KLF Electronics distributes its merchandises through five regional warehouses located in Atlanta. Boston. Chicago. Dallas. and Los Angeles. In the current distribution system. the United States is partitioned into five major markets. each of which is served by a individual regional warehouse. Customers. typically retail mercantile establishments. receive points straight from the regional warehouses in their market country. That is. in the current distribution system. each client is assigned to a individual market and receives bringings from one regional warehouse.

The warehouses receive points from the fabrication installation ; typically. it takes about two hebdomads to fulfill an order placed by any of the regional warehouses. In recent old ages. KLF has seen a important addition in competition and immense force per unit area from their clients to better service degrees and cut down costs. To better service degree and cut down costs. KLF would wish to see an alternate distribution scheme in which the five regional warehouses are replaced with a individual. cardinal warehouse that will be in charge of all client orders.

Part A: Describe how you would plan a new logistics web dwelling of merely a individual warehouse.

Due to increasing competition in the universe. the company has to progress its logistics system. To run into the of all time increasing demands of the clients. the company is be aftering to organize a individual regional warehouse that will be in charge of the client orders. Logisticss is responsible for the motion of people and stuffs in the organisation. Logistics section of the company decides as to how and when. the natural stuffs or other finished or semi-finished merchandises should be moved and stored.

If the company plans for a individual repositing system. so it is fundamentally concentrating on the centralized repositing which is responsible for functioning the whole market. The web will be designed with the aid of complete analysis of the company’s operations. This will assist to plan an efficient scheme for the company. The location and size of the warehouse will be decided. The transit and installation costs will besides be calculated. The cost set up will be decently estimated. The web will dwell of assorted installations like fabrication centre. seller. distribution centre and clients. There will besides be a assortment of natural stuffs and finished merchandises that flow among these installations.

Part B: Supply an lineation of such an analysis ; what are the chief stairss?

There are assorted stairss that will be involved for planing a new logistics activity. In the first measure. the presently runing web in the organisation should be analyzed. In the 2nd measure. the web optimisation database should be designed and populated. After this in the 3rd measure. the options for web design should be created. In the 4th measure. the web optimisation theoretical account should be adopted. In the 5th measure. the tool for web optimisation should be selected. In the 6th measure. the web optimisation should be implemented. In the 7th measure. the alternate web designs will be evaluated. In the last and the concluding measure. the reconfiguration costs for the web will be analyzed.

Part C: Specifically. what information would you necessitate?

The information that will be required for this design web is as follows:
1· A list of all the merchandises of the company.
2· The location of the clients.
3· Warehousing cost and transit cost.
4· Demands of the client for each merchandise.
5· Size of cargo by merchandise.
6· Cost of treating the order.
7· Forms of the orders by size. content and frequence.

Part D: What are the advantages and disadvantages of the freshly suggested distribution scheme relation to the bing distribution scheme?

The freshly suggested scheme will assist the company in a figure of ways. It will assist in rushing up the production activities of the company. It will cut down the installation cost of the company. The safety stock required in centralised system is besides less. It will besides cut down the inbound transit costs. The disadvantages of such a system are that the lead clip will increase and it will go hard for all the clients to easy near a individual warehouse. The activities will go complex and the outbound transit cost will increase.

2. As the Purchasing Manager in a fabrication house. you would be expected to place and cognize assorted facets related to transportation/traffic in order to efficaciously execute your occupation. Today. during the staff meeting. your foreman asked you for advice on two facets of transits: ( 20 points )

a. What are the major considerations when managing stuffs?

I. Discourse the followers:
1. Load Unitization.
2. Space Layout.
3. Storage Equipment Choices. and
4. Movement Equipment Choices.

There are assorted considerations while managing the stuffs and attention should be taken. while working over this activity. The undermentioned things need to be considered: Load Unitization: This is an of import factor of consideration for stuff handling. Load unitisation is the packaging and arrangement of the point or points in a peculiar mode that can be handled as a unit. It should be considered that the points are banded in a securable mode. In this. the physical packaging of the merchandise needs to be considered for its protective packaging. Overhang palettes for packaging should non be used as they can damage the merchandise ( Lock. 1998 ) . Space Layout: It is besides an of import point of consideration in stuff handling. The infinite layout should be such so that the stuffs can be handled in an easy and comfy mode.

The infinite layout should be harmonizing to the merchandises and for the easiness of the workers. Storage Equipment Choices: It is to be considered as it is the greatest factor that contributes to the storage cost. The storage equipment picks include automated storage and retrieval systems. carousel storage and retrieval system. automated guided vehicle system and power & A ; free conveyers. These equipment picks need to be considered to look into the efficiency and cost effectivity of the logistics web. Movement Equipment Choices: it is besides an of import consideration in the stuff handling and it will assist in apportioning the motion of the stuffs for conveyance. The equipment picks help in pull offing the motion of the equipment for storage and conveyance.

B. What legal signifiers of transit are available to the company?
two. Identify the legal signifiers of transit.
three. Discourse the legal signifiers of transit.
four. Supply one illustration for each legal signifier of transit.

There are assorted signifiers of legal transit which involves ordinance of the operating rights. The signifiers of legal transit are common bearers. contract bearers. exempt bearers and private bearers. Common bearers provide services under closed ordinance. as per the published duty. They operate in a peculiar geographical country and for a specific trade good. Example of common bearer can be ‘highway transportation’ . Contract bearers provide services at separately negotiated rates and run under a regulative authorization.

They have pricing freedom and have no service irresistible impulse. They operate on the guidelines that there should be no rate favoritism between the clients. Example of contract bearer is ‘rail transportation’ . Exempt bearers are those which are non apt for revenue enhancement and free from duties. These are used for agricultural trade goods in the United States. Example of exempt bearers is H2O transit. Private bearers look after their ain goods transit. They are non governed by cost and service ordinances. They can non transport the goods of others. although many ordinances have now permitted to make so. Example of
private bearer is air conveyance.

3. See the supply concatenation for breakfast cereal. Discourse the viing aims of the husbandmans who make the natural stuffs. the fabricating division of the company that makes the cereal. the logistics division of the company that makes the cereal. the selling division of the company that make the cereal. the distribution arm of the food market concatenation that sells the cereal. and the director of the single food market shop that sells the cereal. ( 20 points )

In the supply concatenation for breakfast cereals. everyone has its ain viing aims which inspire them to bring forth the merchandise by giving his best possible attempt. In the supply concatenation. the aims of the husbandmans are to bring forth the best quality natural stuffs and earn maximal net income for him and his household. He wants to sell it at the best possible monetary value and puts all his attempts to bring forth the cereals. The viing aims of the fabricating division of the company are that they should bring forth the quality and type of merchandise that is demanded by the client. Its chief purpose is to get efficiency in production and to bring forth better than its rivals. The logistics division of the company besides has certain viing aims. It works with the aim of pull offing all the stuffs and work force related activities.

It handles the storage of stuffs in an efficient mode. The direction of transit. buying of natural stuffs. storage and supply of finished merchandises are the chief purpose of the logistics division. The aims of the selling division of the company will be to market the merchandise in an attractive and effectual mode. The packaging should be attractive and should expose the particular qualities of the merchandises. It besides has the aim of make up one’s minding the pricing and promotional activities of the merchandise. The aim of the distribution arm of the food market concatenation is to administer maximal measure of the merchandise to the retail merchants and cover more marks as compared to their rivals. The aim of the food market shop that sells the cereal will be to sell the best quality merchandises to the clients. They besides serve the clients and carry through their demands.

4. You have been called in as a adviser to a big apothecary’s shop concatenation which has 24. 000 stock list line points. Explain how inventory categorization could assist this company to better command its stock list. ( 20 points )

Inventory categorization is really helpful for commanding the stock list when a company has such a broad assortment of stock list line points. There are fundamentally five different types of stock lists that are fluctuating stock lists. expectancy stock lists. rhythm stock lists. transit stock lists and uncoupling stock lists. Fluctuating stock list will assist in pull offing the irregular demand of the merchandises. Anticipated stock list helps in pull offing the unpredictable demand of the merchandise.

Cycle stock list helps in comparing the ingestion and production of the merchandises. Transportation system stock lists are managed. where the clip taken to transport a merchandise is more and so run into the demands. it is maintained. Uncoupling stock list is maintained to cover up the increasing demand of the merchandise or the increasing purchases of the merchandise. Inventory categorization will assist the company in stock list control. as. it will assist in proper planning of the production system as stuffs will be available wherever and whenever required. It will besides assist in fulfilling the orders of the clients as per the commuted day of the month. It can besides assist in work outing the job of haste order stock list. It will besides assist in timely direction of the stock list.

5. Discourse how each of the undermentioned aid to relieve the bullwhip consequence: ( 20 points )
c. E-Commerce and the Internet
d. Express Delivery
e. Collaborative prognosiss
f. Everyday low pricing
g. Vendor-managed stock list

Bullwhip consequence is the expansion of the demand fluctuations i. e. additions and lessenings in demand. This is frequently caused by monetary value fluctuations. rationing. misperceptions of feedbacks. telling terrors. calculating mistakes etc. It can be alleviated with the aid of assorted tools like cyberspace. express bringing. collaborative prognosiss etc. Internet and e-commerce aids in giving more accurate information to the providers about the demand of a merchandise. It helps in bar of distortion and incorrect communicating of the demand related information. It besides assists in cut downing the lead clip. as ; it eases the order processing activity. Express bringing helps in cut downing the demand discrepancy and besides reduces the lead clip. It refers to seasonably and really fast bringing of the merchandises to the jobbers and to the ultimate clients. In collaborative prognosiss procurance. merchandise direction and gross revenues participate.

Collaborative prognosiss help the stakeholders in geting at a peculiar demand prognosis and relieve the bullwhip consequence. Everyday pricing besides alleviates the bullwhip consequence. There are certain demand hikings. which are created by periodic publicities and this leads to increase in demand fluctuations. Everyday pricing helps in forestalling the increasing demand fluctuations and alleviates the bullwhip consequence. Vendor managed stock list is helpful for the provider as. it assists in supervising the downstream demand. With this. the provider can do a good and effectual determination related to assorted activities like what measure should be shipped for the clients and what measure should be kept on manus. So. with the aid of seller managed stock list. the provider does non hold to depend upon the order informations. Therefore. the provider does non hold to trust on order informations for demand appraisal and alleviates the bullwhip consequence.