Preview

Logistics Case Study#2

Satisfactory Essays
Open Document
Open Document
493 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Logistics Case Study#2
1 . How can design for logistic concepts be used to control logistics costs and make the supply chain more efficient ?
Design for logistics concepts can be used to control logistics costs by applying the concepts to the supply chain process . The DFL focuses on three concepts , which are : packaging and transportation , parallel and concurrent processing , and standardization . In terms of controlling logistics costs , the DFL suggests that packaging and transportation can be improved to save on costs . If products parts are shipped in bulks , instead of transporting the already assembled products , the company will make a lot of savings . Hewlett-Packard can apply this to its operation by transporting the printer 's parts to minimize space and leave the assembly to the distribution centers .
The parallel and concurrent processing can be effective in shortening the manufacturing time of a product . This will also improved forecasting since many product components can be made at the same time .
In terms of components that need to be purchased and the supply is uncertain , the company can buy that part in volume . This way , only that component needs to have a high level of inventory instead of the entire product . This is highly applicable to HP 's problem of maintaining a low inventory level while meeting customer needs . As for standardization , HP has already a standardized manufacturing process but it needs to break it down by module or by part . HP can also implement a standardized procurement of materials .
2 . What is delayed differentiation and how can Hewlett-Packard use delayed differentiation to address the problems described in the case ?
How can the advantages of delayed differentiation be quantified ?
Delayed Product Differentiation is a manufacturing technique wherein processes and parts are standardized while leaving the decision to what end product would result during the actual assembly of the

You May Also Find These Documents Helpful

  • Satisfactory Essays

    logistics case

    • 891 Words
    • 4 Pages

    Does MAP understand its transportation needs in a changing environment? What role does transportation play in MAP’s supply chain? How is this role different or the same as other companies (multi-nationals, retail, manufacturing, etc.)?…

    • 891 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Westminster Company

    • 291 Words
    • 2 Pages

    Can improve with inventory dispersed across fewer storage locations. Fewer transfers will be required to meet customer demand. Pending on the distance from warehouse locations to customer locations, delivery time may be an issue.…

    • 291 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Hill’s AutomotiveInc., is an aftermarket producer and distributor of automotive replacement parts. The business slowly expanded which began as a supplier of hard-to-get auto air-conditioning units for classic cars and hot rods. The firm has limited manufacturing capability but a state-of-the-art MRP system and extensive inventory and assembly facilities. Components are purchased, assembled and repackaged. Profits have fallen considerably. In addition, the customer service level has declined, with late deliveries now exceeding 25% of orders. And to make matters worse, customer returns have been rising at a rate of 3% per month.…

    • 379 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    These quantities would more effectively meet end-consumer’s needs and more evenly distribute WORKLOAD on the manufacturing and logistics systems…

    • 2402 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    * National Logistics Management (NLM), a third-party logistics company, is a successful, profitable business that provides a more cost-effective and efficient means to expedite premium freight.…

    • 745 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Integrated Logistics

    • 584 Words
    • 3 Pages

    Yes, it appears that the performance cycle can be improved through the use of 25% and 15% suppliers. For example, Company 2 offers better service levels and less…

    • 584 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Home Depot at the end of 2000 stands on rock solid financial footing as the World’s largest home improvement Retailer. As they continue to grow in size, so has their outcome of success. Home Depot’s net revenues have grown 208% between FY 1995 and FY 2000. Home Depot’s growth in net earnings over the same period has been 284%. The revenue that the firm is retaining as profits is outweighing the total amount being brought into the company. In 1998, Home Depot was leading Lowes in all earnings except earnings per share. Lowe’s EPS equaled $1.37 to Home Depot’s $0.73.It is important to note the activity ratios when talking about an industry where competitors need to carry a lot of inventory to effectively compete. In 2007, Home Depot had a huge supply chain transformation, which led them to the highest sales in fiscal years. After the fiscal year of 2007, there was a huge decrease in sales due to the recession crisis that happened from 2007to 2009. Home Depot was still able to make profit, but it was lower about 2 million. In 2012, Home Depot had a huge recovery in profits due to the housing market and the demand for supplies to fix the damages made from Hurricane Sandy. Home Depot continually leads in total asset turnover as well as inventory turnover. Home Depot also sells out of their stock 6.71 times per year as to Lowe’s 5.91 times.…

    • 1907 Words
    • 8 Pages
    Good Essays
  • Better Essays

    Lead Time Reduction Methods

    • 2711 Words
    • 12 Pages

    [Simeonovova 2011] Simeonovova, I. Manufacturing order management in company. Brno: VUTBR, Faculty of business and…

    • 2711 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    Transportation and Logistics

    • 19170 Words
    • 77 Pages

    Institute Dr. Heiko von der Gracht +49 611 7102 2100 heiko.vondergracht@ebs.edu Tobias Gnatzy +49 611 7102 2100 tobias.gnatzy@ebs.edu Christoph Markmann +49 611 7102 2100 christoph.markmann@ebs.edu Dr. Inga-Lena Darkow +49 611 7102 2100 inga-lena.darkow@ebs.edu…

    • 19170 Words
    • 77 Pages
    Powerful Essays
  • Satisfactory Essays

    BRADLEY S. JACOBS is the Chief Executive Officer of XPO Logistics, Inc. A career CEO, he has led two public companies. United Rentals, Inc., which he cofounded in 1997; and United Waste Systems, Inc., founded in 1989. Mr. Jacobs served as Chairman and CEO of United Rentals for the company's first six years, and as Executive Chairman for an additional four years. He served eight years as Chairman and CEO of United Waste Systems. Previously, Mr. Jacobs founded Hamilton Resources (UK) Ltd. and served as its Chairman and Chief Operating Officer. This followed the cofounding of his first venture, Amerex Oil Associates, Inc., where he was Chief Executive. Mr. Jacobs is a member of the board of directors of the Beck Institute for Cognitive Behavior Therapy.…

    • 2137 Words
    • 9 Pages
    Satisfactory Essays
  • Powerful Essays

    Reverse Logistics

    • 1286 Words
    • 6 Pages

    Reverse logistics and the return portion of the supply chain is often an overlooked and mismanaged process. Companies tend to focus their efforts on the forward portion of supply chain management, while failing to take advantage of the many opportunities that reverse logistics presents (Benton, 2007). What these companies do not realize is that the effective management of reverse logistics has the potential to make them more profitable, and to add value to many other parts of their supply chain. In the case of Johnson Automotive, we will analyze their current supply chain processes to determine their effectiveness while answering the following questions:…

    • 1286 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Logistics

    • 696 Words
    • 3 Pages

    1.) Ikea case: (the 3 main topics) a. Competition between suppliers The structure of Ikeas logistic creates a high competition between their suppliers. It is because Ikea is subdivided into (many) Trading Areas, which compete for the commissions the headquarters of Ikea (Ikea of Sweden) gives. Each Trading Area tries to find the best thus cheapest solution for producing and delivering a product, so each of them negotiate with their suppliers and make an offer to the headquater of Ikea. Of course the headquarters (IOS) pick the cheapest combination of producing and delivering (logistics). That is the way the headquarters of Ikea find the cheapest manufacture for their products, including transport and all the other logistic costs. This fits into Ikeas cost leadership strategy. As a second result the Trading Areas plus the suppliers are in a competition, which makes them very efficient. b. Long term orientation Ikea tries to have long contracts with their suppliers. They grant their suppliers a lot of advantages. Ikea shares their knowledge and experience in logistics with them. If a supplier could not deliver a product as cheap as Ikea wants, Ikea helps the supplier to reduce costs. They prefer doing that instead of changing the supplier, it shows the long term orientation of Ikeas supply chain. Ikea is very connected to their suppliers. From the prospective of the suppliers it is a good thing because they can also make long term plans or investments. Ikea helps their suppliers with Investments as well, if they could not make the investment. Ikea gives them financial security for the future. This leads the suppliers to accept a lower price for the products paid by Ikea, than they could get from another customer. So Ikea is again able to lower the cost, which matches again Ikeas cost leadership strategy. c. Bypassing distribution Centers The last logistic issue that explains Ikeas cost leadership is that they mostly skip the distribution…

    • 696 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Read through the case study on Cartes sans Frontières and write a report addressing the issues raised in the questions below.…

    • 2115 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Inbound Logistics

    • 253 Words
    • 2 Pages

    that you are familiar with the setup instead of trying to figure out during the…

    • 253 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In the field of education in Logistics and Material Management research is a key element as it identifies proper procedures and operations in procurement, budgeting, transportation and flow of materials. Research is important as it used to establish or confirm facts, reaffirms result and solves new problems, or develops new solutions (Ross, 2005). The goal in all types of research is to produce new knowledge or understanding of a certain issue or topic. Qualitative Case research provides an opportunity to become more familiar with the material or topic being presented. This method allows for a more involved process and applying this method in my area of interest helps me by not implying or assuming a conclusion but rather an accurate answer based on was the research has guided the result.…

    • 516 Words
    • 3 Pages
    Good Essays