Logistics Management: Logistics Management

1116 Words 4 Pages
QUALITY MANAGEMENT
Logistics management can be described as an integrating activity which optimizes and integrates all logistics functions. It also integrates other logistics activities with other related function such as information technology, finance, manufacturing, sales and marketing. Supply Chain solutions play a vital role in identifying and determining a company’s success. Primary results can be found in supply chain, in case there is a small variance in the inventory. In order to counter such consequences, there is the need for an organization to have effective logistics. Management that takes place from raw material to final stage at the correct time and place is carried out by logistics management. For companies to leverage chances
…show more content…
Most business will always adopt the supply chain management in order to ensure that the chain is operating effectively and hence providing high satisfaction to the customer.
The strategy that has been deployed by McDonald is to ensure that the demand of customers is met while at the same time trying keeping the prices low. McDonald also operates on a strategy that it does not begin to cook the food until the customer has placed an order. The Total Quality Management (TQM) strategy assists the customer to reduce or even get rid of food wastage and promote efficiency within the required purpose, but at a minimal cost. The kind of benefits that are associated with this strategy is that it ensures high quality service delivery to the customer. The system is so perfect that it does not cause delays to the customer. Because keeping up the cost of burger is relatively higher, the TQM strategy helps in preventing the spoiling cost. The strategy also helps McDonalds to maintain an eye on the “Economic Order Quantities” which is otherwise vital in identifying how much is supposed to be ordered. There are two major factors that determine “Economic Order Quantities”; high holding cost and low ordering cost (Sallis,
…show more content…
This is possibly a little amount of inventory which is normally put in place to ensure that the unanticipated higher demand is met. The inventory manager uses a weblog to amend and view order proposals. Any time the process of ordering takes place, the weblog creates a proposed order to amend or analyze if necessary. The software is very vital, since it assists managers to view the quantity that has been ordered, the current stock level and the amount of stock that is due at a given time. The system is designed in such a way that it automatically generates a piece of note that shows the quantities along with delivery descriptions. The manager must then click confirm when he has finished selecting the inventory that they wanted to use. Safety stock is, however, very crucial to customers (Pyzdek & Keller,

Related Documents