Essay Gscm550 Week1 Study Questions

810 Words Jul 29th, 2016 4 Pages
Course: GSCM550 – Logistics, Distribution and Warehousing
Assignment: Chapter 2 - Study Question – 1, 4 Chapter 3 – Study Question – 2, 4

Chapter 2

Question 1: Illustrate a common trade-off that occurs between the work areas of logistics.

According to Bowersox (2012) “trade-offs between procurement, manufacturing, and logistics is to understand that the trade-off is between the cost and risk associated with anticipatory manufacturing and the loss of economy of scale resulting from introducing flexible procedures”.

The illustration of trade-off that occurs between the functional areas of logistics, the common trade-offs discussed in our textbook are:

Order processing – main importance to meet customer requirements
…show more content…
The textbook outlines two elements of this value proposition such as cost/service and trade-offs (minimum cost)

Basically, companies should make proper exchanges between service and cost of each of their key customers. Ideally, the logistic value proposition is applied to fulfill customer’s expectations at accurate total cost expenses.
It does not necessarily applies or will fit to “all” customers but to “key” customers, this way, customer relationship will be attained from already established customers. For that reason, managers must be indicated that all customers are different and such services must match in order to provide customer requirements for possible purchases.
Ref: Bowersox. Supply Chain Logistics, 4th Edition. McGraw-Hill Learning Solutions, 01/2012. VitalBook file.

Chapter 3

Study Question # 2 - Why are the four primary service outputs of spatial convenience, lot size, waiting time, and product variety important to logistics management? Provide examples of competing firms that differ in the level of each service output provided to customers.

The four primary service outputs of spatial convenience, lot size, waiting time, and product variety are important to logistic management with the simply reason to eliminate “discrepancies” of space, time, quantity, and assortment.

According to Bowersox (2012) ‘To eliminate these discrepancies, Bucklin developed four generic service outputs necessary to satisfy customer requirements” and

Related Documents