Essay about Logistic: Manufacturing and Logistics Network

2021 Words Sep 17th, 2011 9 Pages
1. Why is it important for a firm to periodically review its logistics network design? How do a firm’s requirements for its logistics network change over time?

The factors that affect the performance of the logistics network are not static, i.e., they change over time. These factors include demand, product design, various costs in the logistics network, regulations, contracts, etc. The effects of these dynamics need to be evaluated periodically in order to determine whether the existing configuration is still satisfactory given the new operating environment.
For instance, service level requirements may change due to increased competition which typically means that the lead time to fulfill
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6. Decide where to locate the centralized warehouse..

With the centralized warehouse, service level will increase (less stock-outs) and inventory holding costs will decrease due to risk pooling. Also, fixed costs associated with warehousing will typically decrease, and inbound transportation costs from the manufacturing facility to the warehouse should be less than the sum of the previous inbound transportation costs. However, we will incur increased outbound transportation costs from the central warehouse to the retailers. In summary, the essential design trade-off is between transportation costs on one hand, and inventory holding costs and service level requirements on the other.

4. In selecting potential warehouse sites, it is important to consider issues such as geographical and infrastructure conditions, natural resources and labor availability, local industry and tax regulations, and public interest. For each of the following industries, give specific examples of how the issues listed above could affect the choice of potential warehouse sites: a. Automobile manufacturing b. Pharmaceuticals c. Books d. Aircraft manufacturing e. Book distribution f. Furniture manufacturing and distribution g. PC manufacturing
a. 自動製造 b. 製藥 c.

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