Characteristics Of Effective Logistics

A add in concert kitchen range is an integrated manufacturing assist which involves diverse business units work to catch up withher to acquire and interchange huffy materials into final merchandises which argon then delivered to the guest (Beamon, 1998). The clear up hang on chain strategy depends on several(prenominal) factors. A product characterized by electrostatic take aim and sure affix cannot be managed in the same manner as one characterized by volatile read and unreliable supply. (Lee 2011). need predictability is associated with product type, operating(a) versus innovation. Functional products ar characterized by get-go demand indecision, more predictable demand, stable demand, dour product life, humbled memorial toll, embarrassed lucre margin, low product variety, broad(prenominal) plenitude per SKU, low pains-out cost and low obsolescence Example include fix fiber foods. Innovative products be characterized by gamy demand uncertainty, sticky to forecast, variable demand, racy inventory cost, high returns margins, high product variety, low volume per SKU, high stock-out cost and high obsolescence. In the absence of direct information on the essential requirement of the customer, organizations be forced to make forecasts. To revoke the mishap of stock-outs most organizations extradite caoutchouc stock.

What happens is that as we chance on save up the supply chain the magnitude of the safety stock carried increases. This phenomenon is referred to as the bull shoot effect. (Lee et al 1997)The effects of this include blood inventory, excessive capacity, insufficient capacity, long backlogs and uncertainty in achievement planning. mavin of the major problems that run into performance is uncertainty. There are devil parameters to uncertainty. Uncertainty in demand and uncertainty in send clock time. One of the major effects of lead time uncertainty is the bull whip effect which results in increases in supply chain cost and decrease in customer process level (Heydari et al 2009). Advances in information engine room has allowed for...If you indirect request to get a full essay, put up it on our website: Orderessay

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