differentiation with the proper implementation of IT. Enabled by IT the logistics has become a source of competitive advantage for many firms. In four areas we are looking at the benefits and problems of using IT‚ which is: * Customer Service * Warehouse and Storage Management * Inventory Planning * Transportation Management Customer service is an important element for making a successful business. You can have a wonderful product‚ but without excellent customer service the item will never be
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centralized warehouse is the lower need for safety stock due to the canceling effect of random variability in orders from the various regions. Conversely‚ with separate warehouses‚ each warehouse needs a relatively larger safety stock to guard against variations in demand. This would enable the centralized warehouse to see what the regional warehouses are stocking and also review their historical demand patterns and future customer forecasts. The fact that the regional warehouses have increased
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to anyone expect the original customer * S.W operated several warehouses located near the plant * Inventory levels are high cuz customers are not happy when they know they need to wait for 2 weeks in order to get their products Specialty products: - manufacturing is the problem that leads to high inventory - customers are unsatisfied at the customer service representatives’ for not having any steel in the warehouse to ship - specialty attempted to manufacture its products in a single
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performance in 2003‚ which warehouse shows the most improvement? St. Louis is the only one showing any improvement‚ using cost per unit shipped as the performance criterion. The cost for the first five months of 2003 was $9.97 and for the first five months of 2004‚ it fell to $9.07. Question 2: When comparing performance during the first five months of 2004 with performance in 2003‚ which warehouse shows the poorest change in performance? The worst change is the company’s own warehouse (located in Fargo)
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Introduction ChemCo‚ a specialty chemical manufacturer‚ is considering how to best redesign its distribution network in Texas. This decision is especially relevant as the due date approaches for renewing their contracts with several of the 3PL warehouses they are currently using. David‚ the operations manager for the Texas region‚ has been actively leading the improvement of their Houston plant to remove bottlenecks in both production and distribution of the chemical products. The Houston plant
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OPRE 6370 Logistics and Distribution Assignment Two Sixue (Shawn) Du Question 1 When comparing performance during the first five months of 2010 with performance in 2009‚ which warehouse shows the most improvement? Answer After calculated all of the warehouse costs per unit of every city in 2009 and 2010 which showed on EXHIBIT 3-A and compared them‚ we found that St. Louis is the only one that shows any improvement‚ using cost per unit shipped as the performance criterion. The cost for the
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Shelly Rungta Supply chain Management srungta@umich.edu Should Merloni replace its network of regional warehouses with transit points? To focus your thoughts‚ consider the RDCs at Roma and Catanzaro. Which (or both) of these RDCs would you replace this with a transit-point system (assume that Roma is 175 km and Catanzaro is 600 km from the CDC)? Why? In the current case the company ran a pilot project for cross docking at Milano warehousing loading area. Before considering whether the company
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systems of record. It serves the needs of shoppers‚ business managers ‚ site administrators and external line of business systems that interface with commerce server. COMPANY PROFILE Statement of Problems * Having inventory items in the warehouse which had not idea about * Inventory spreadsheet that was never reporting accurate inventory levels. * Quote a delivery date to a customer only to find out insufficient inventory in stock. * Excessive inventory in stock and unable to
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gross margin for products that customer’s ordered but were not available in the warehouses. These costs are called "underage" costs and included lost revenue from cancelled orders and backordered administration. The company also had inventory that were in stock at the warehouses but were not sold during the demand period‚ these are "underage" costs. In order to address some of these issues‚ SG added regional warehouses‚ each of which handled approximately 1/8 of SG’s total customer orders. This plan
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• South Korea- Seoul We have chosen to form a global partnership with a third part logistics (3PL) provider called Kintetsu World Express‚ which is based in Japan‚ but also has offices and warehouses around the world. Kintetsu world express has cutting edge distribution centres and warehouses facilities which are equipped with global logistics systems. They also boast specialised freight and factory equipment and they handle a wide range of products from electronic goods to delicates such
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