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MTNSA-Take Care Mz… 19.4K/s 1010 63% 09:01 k BCOMDEG_Sup… READ THE SCENARIO BELOW AND ANSWER THE

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MTNSA-Take Care Mz… 19.4K/s 1010 63% 09:01 k BCOMDEG_Sup… READ THE SCENARIO BELOW AND ANSWER THE QUESTIONS THAT FOLLOW: DHL-LEAD LOGISTICS PARTNERSHIP INCREASES EFFICIENCY AND SUSTAINABILITY A world-renowned promium car manufacturer produces wary and all-terrain premium passenger vehicles with globally recognized iconic brands. With over 20,000 employees, the company has three plants and two design centres in the UK. DHL has been responsible for managing the inbound logistics of the customers’ factory since 1998, moving raw material components and sub-assemblies within the plant to make

MTNSA-Take Care Mz… 19.4K/s 1010 63% 09:01 k BCOMDEG_Sup… READ THE SCENARIO BELOW AND ANSWER THE QUESTIONS THAT FOLLOW: DHL-LEAD LOGISTICS PARTNERSHIP INCREASES EFFICIENCY AND SUSTAINABILITY A world-renowned promium car manufacturer produces wary and all-terrain premium passenger vehicles with globally recognized iconic brands. With over 20,000 employees, the company has three plants and two design centres in the UK. DHL has been responsible for managing the inbound logistics of the customers’ factory since 1998, moving raw material components and sub-assemblies within the plant to make sure they are at the right place when needed. In addition to the factory operations, DHL has also been managing the Inbound operations at other plants in the UK, as well as strategically planning and executing inbound collections of parts from its 350 UK suppliers and 450 EU suppliers. Customer challenge The car manufacturer needed a logistics provider who could manage the inbound deliveries of parts from over 800 suppliers in the UK and EU to their production plants more efficiently and with greater texbility. The goal was to meet changing demand while ensuring transparency on costs. Budgeting also needed to become more accurate, as it had been locked with the previous incumbent into a three-month planning cyde for freight deliveries. In addition to this requirement for greater efficiency and flexibility, the customer also wanted to reduce costs and improve their environmental footprint DHL Supply Chain Solution The car manufacturer has pulled together virtually its entire inbound network and integrated it under the control of DHL. Acting as a Lead Logistics Provider (LLP) we manage transport, stock handing and ine feed at the three plants. Our team plans both EU and UK collections dynamically based on the customer’s demand, using the latest software to optimize route planning and loading and to reduce empty mileage. Through the use of dynamic planning and software tools, we are now able to ne-plan the whole freight plan every two weeks, which is a challenge given its scale and complexity in the UK. we collect parts from 350 suppliers using our own feet, which during peak volume is supplemented with sub-contractors In Europe, we use third party transport providers to collect from just under 500 suppliers, located in 17 countries. To optimize transport efficiencies, we set up seven cross-docks to consolidate loads before they are devered to the plants, thereby driving higher vehicle fill and reducing waste in our customer’s supply chain Our LLP team is responsible for procuring and managing the party providers making sure they are compliant with the company’s standards and meeting the performance levels agreed during the negotiation phase Source: www.ch.com/supply chain V QUESTIONS: 1.1 Discuss the challenge of budget inaccuracy on DHL’s supply chain. (10) 1.2 Examine the implication of cross-docking on resolving DHL’s supply chain challenges. (12) 1.3 Clarity and discuss the benefits of sub-contracting to balance DHL’s peak supply period. (10) QUESTION TWO [18] Read the extract below and answer the questions that follow: Meeting customer requirements is a basic mission of the firm. Business is not only about generating demand but also about fulfilling it. It seems logical, offhand, that firms should have complete stock 100% of the time Making products available entails costs, from the design, manufacture, storage, and delivery of an item. Firms are sensitive to investing in capacity or in keeping more inventories to anticipate unforeseen demand. On the other hand, firms are also conscious that product un-availability could mean lost sales and possibly lost opportunities, sometimes to the point that it can determine the long-term survival of the business. Unless one’s product has quality characteristics unmatched by others or has a monopoly In utility, impatient customers will switch to competing brands if their brand of first choice is not available. Executives would attempt to balance product availability against anticipated market demand. They would try to match supply with demand. Inventory and extra capacity would be the butter against uncertainty. With this regard, Discuss the various approaches that can be vised to ensure the continuous availability of a product QUESTION THREE (26) Since it is usually impossible to consider every fine detail associated with the production process while maintaining such a long planning horizon, it is mandatory to aggregate the information being processed. The aggregate production approach is predicated on the existence of an aggregate unit of production, such as the average item or in terms of weight, volume, production time, ar dollar value Plans are then based on aggregate demand for one or more aggregate items. Once the aggregate production plan is generated, constraints are imposed on the detailed production scheduling process which decides the specific quantities to be produced of each individual item. The plan must consider various ways a firm can cope with demand fluctuations as well as the cost associated with them. 3.1 Critically discuss the applicable demand alternatives that operations managers can use to control aggregate plans (16) 3.2 Explain how the business incurs inventory handling costs due to aggregate planning. (10) 2 aggregate production plans generated constraints are imposed on the detailed production scheduling process which decides the specific quantities to be produced of each individual item. The pian must consider various ways a fim can cope with demand fluctuations as well as the cost associated with them 3.1 Critically discuss the applicable demand altematives that operations managers can use to control aggregate plans (16) 3.2 Explain how the business Incurs inventory handing costs due to aggregate planning (10) QUESTION FOUR 1241 Shorter production runs and multiple configurations of products do not work well in traditional manufacturing settings. Shorter runs require les material on the ine. Most manutacturers still bring aful palet to the line when needing only a third of the material on the pallet. As multiple product models flow through the assembly line, more palets with parts for each model in the workel These are necessary to accommodate quick changeovers on the in The result is a high level of chaos Aisles become more congested as traffic bringing and returning, material to the line increases. Workers must use more steps to access the correct component for each model. The possibility of workers attaching the wrong material for the product model increases Finally, safety issues rise. The good news is is possible to reduce excess inventory and all meet production goals. With this regard, 4.1 4.2 As a supply chain manager working in complex environments examine and discuss how excessive inventory becomes a waste in the production process (12) Assess the relevant approaches that could be implemented to minimise the waste stated in question 4.1 (12) END OF THE QUESTION PAPER 4/4

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