Got a tricky question? Receive an answer from students like you! Try us!

Logistics and Operations Management - Essay Example

Only on StudentShare
Author : osinskidallin

Summary

Purchase or Production cost becomes significant when availing price discounts. The cost per unit held in inventory will suffer a loss due to high price discounts that the company has to provide its buyer to move its products
Ordering or procurement or acquisition or Replenishment cost including Transportation costs…

Extract of sample
Logistics and Operations Management

A business must analyze their various costs of production involved in producing a product and compare it with cost of buying the product from an external supplier. If the cost of buying is less than cost of producing the product, then companies can opt for buying the product. This could be extended to each phase of the production cycle.
Companies plan and forecast the demand according to the future needs of the market. Forecasting demand assists in decision making with respect to investment in plant and machinery, market planning and future sales. Some of the popular forecasting methods include
Companies strive to achieve quality standards like ISO 22000:2005, Six sigma, Deming awards etc. Total quality management along with Japanese techniques is widely practiced ensuring the continuous delivering of quality products. Nowadays a product without quality cannot exist in the market i.e. if a company is surviving, then quality is inbuilt. Quality forms the basis of survival of a company or a business nowadays. Quality audits and a lot of quality management practices are a means to ensure that the customer receives good quality product.
Inventory control is a planned approach of determining what to order, when to order and how to order and how much to stock so that costs associated with buying and storing are optimal without interrupting production and sale ...
Download paper

Related Essays

LOGISTICS & OPERATIONS MANAGEMENT 2
There are a wide range of definitions based on main logistics functions within organizational and production processes. Taking into account business definition, "logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment " (Logistix Partners Oy, Helsinki, FI, 1996, cited What is logistics 2005). Another definition reflects overall purpose of logistics and states that: "Logistics means having the right…
2 pages (502 words)
Operations and Logistics Management
It seeks to achieve these objectives by facilitating a culture where teams of employees are sufficiently motivated to work together to revisit working practices in an effort to monitor their performance and make changes for the better.…
6 pages (1506 words)
LOGISTICS & OPERATIONS MANAGEMENT 3
Thus managers can consider the inventory management problem to be a part of operations scheduling problem. Conventionally managers take a narrower view of the delivery. The timing of activities may have a direct impact on resources and the level of service (Naylor, 2002).…
2 pages (502 words)
Risk Management in Logistics
Kathleen DesMarteau (2005) recognizes the following key points as being a component of the risks and logistics management, which function as internal and external risks:…
16 pages (4016 words)
OPERATIONS AND LOGISTICS MANAGEMENT
The bakery is located in a large two-stored building with office and industrial premises. The premises cover bakery shop with full production line, a warehouse, a big chilled food storage space, a garage and an industrial site. It employs 50 full-time bakery employees and technical staff such as bakers, confectioners, baking apprentices, shop assistants, engineers, drivers, bakery managers and office staff. Corporate strategy of the enterprise is built upon the following principles:…
OPERATIONS AND LOGISTICS MANAGEMENT
Starting with a general definition of manufacturing process, manufacturing processes are a collection of methods that converts “naturally occurring raw materials into desired end-products” (Harrington, 1984). In other words, raw materials are collected and by means of a chain of production activities, are converted into end-products. A rather precise definition is given by Halevi (1999): “the manufacturing process is a chain of activities directed toward meeting a set of objectives defined by management.” The objectives include development and production of products, production of…
4 pages (1004 words)
Logistics and Operations Management
Aggregate planning also enables planners to effectively make decisions concerning changes in employment, output rates, and inventory levels and back orders (Stevenson, Chuong 615). It also helps in the implementation of plans and prediction of changes in demand. Aggregate planning helps an organization in the budgeting process and in the synchronization of flow throughout the supply chain (Stevenson, Chuong 617- 618).…
4 pages (1004 words)