Sclt 2362 Ch 1 End of Chapter Questions

The transportation and logistics company is a fast growing industry, and it is very competitive. Many companies invest heavily in the transport and logistics company to ensure the flow of goods from the producer to the consumer market. A good flow of products to the consumers provides growth in a country. The logistics companies deal with the planning and coordination of the transportation and delivery of the goods. In 2015, the U.S earned $1.48 trillion, which was approximately 8% of the annual gross domestic product (GDP) (U.S Logistics Industry-Statistics and Facts, 2017). Many firms, both multinational and local, have tried to find solutions to the underlying problems in the transportation and Logistics industry to ensure good movement of goods from producer to consumer market.

Company is facing a challenge of potentially higher inventory costs. Rising prices may further result in changes in customer behavior and preferences.

4. Logistics is a critical part of a supply chain that is an integration of the logistics systems in all the organizations

The global logistics business its self is about 11% of the global GDP (The World Bank; cf.

Customer demand and product preference should be focused on to produce more of what the customer wants and to allow for stock reduction.

It is widely known that logistics is the life blood of anything major. The logistics and transportation industry in the United

After weighing the different options to improving the inadequacies of the TSC supply chain, we feel that a combination of both reducing the number of SKUs and reorganizing the direct shipments would help soften the demands of future growth the most. Before reducing the number of SKUs, It is important that TSC take into consideration which items offer the better gross margin return on investment (GMROI). In conjunction with knowing which items are more profitable and which items require the most inventory space in both the stores and the DC, TSC could start to eliminate inefficient SKUs. This does not mean eliminate a product offering altogether, if the company currently offers four different types of a single product, it would mean reducing the selection offered to customers. Increasing the number of products shipped directly to the stores would decrease the stress on the DC; however, TSC must take into consideration the stress of additional stores on the vendor shipping the product. TSC does not want the added stress to cause an increase in lead times, which could lead to more hole counts. That is why it would be important to systematically isolate the SKUs that require the most space in the DC, and focus on working with the vendors to reliably ship those products directly to the stores.Brad’s model predicts that the yard will reach max capacity as soon as next spring.

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

Items in the store are also arranged by their intrinsic properties. For example, the dairy products are in the same aisle as Ice Cream and Yogurt. This arrangement makes for an easy transition for the customer. This layout pays a considerable role in assisting the customer’s visual system to pay attention to the store’s items.

Comparing the supply chain for private label eBags and manufacturers, major competitive companies, in particular, JanSport, Eastpak, American Tourister, and the global manufacturer Samsonite, all with significant share of the traveling pleasure and business markets. Products are produced for status conscious, consumers’ preferring high end, and full-featured, designer products, middle markets prefer differentiated features, and the low-end unbranded, private label, consumers’ preferred minimum features. Each level meeting market expectations of quality, usage and price. High, middle and low-end products are shipped to the designated specialty, major retailers, large retailers and discount stores according to the quality of luggage and accessory products where consumers would purchase the items they required and wanted where the bullwhip effects the performances of the supply chain and the risks. (Hou, B; 2013, February 19).

In projecting demand, we face many problems along the way because is not easy to please every type of customer in the market world. First of all, gauging new item presentations is turning out to be progressively critical as item life-cycle abbreviates and collection turnover increments. It represents a specific test in claim to fame retail divisions, for example, gadgets, design, books and cultivating, where new item presentations and intensely invigorated occasional combinations represent the

First, form utility means change the product’s form to make consumers convenience. For example, people will have a lot of book no matter what age they at, but book will occupy a lot of space. Therefore, company change the paper books to electronic books to help people save place. Also people can easily get their anywhere. Just like Apple Inc., they have an app call “iBook” consumers can open their eBooks there, and find the books they like and buy them. It is convenient. Usually, eBooks are much cheaper than paper books.

22. ___________ refers to the delay of value-added activities such as assembly, production, and packaging to the latest possible time.

Form, Place, Time and Possession are the 4 different utilities created by marketing. Altogether, these utilities help build customer relationships and satisfaction. Form utility refers to the process of producing product or service. This is a corner stone of marketing utility, as without the production of a product, there is no sale therefor, no customer value or satisfaction.

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.