This report presents an analysis of the current business processes used by Cathay Pacific to optimally manage its spare parts supply chain, which was valued above US$350 million in 2005. Based on the case study itself, an analysis of aviation spare parts industry’s buyers…
An efficient cost reducing solution to the problem of supply chain management optimisation has been suggested from a new perspective based on integer linear programming formulation by introducing a new algorithm to the rotable part, which can be applied to the whole inventory. For this purpose, calculation has been made through Viscalc application with iterative probability computation to prove the worth of the solution in reducing cost of inventory.
Report findings point to the need of changing obsolete technology used through Ultramain and update it through currently available dynamic applications, as Ultramain was acquired for handling technical log process and for general maintenance management only. Based on the integer linear programming, the significance of the optimisation of the inventory, particularly of T category rotable parts like engine of the aircraft, is shown to be very crucial to attain.
The subject of logistics and supply chain management has attained significant importance due to globalisation of business functions. No industry can manage to achieve cost efficiency and high performance levels without investing specialist resources to leverage from better supply chain management functions. Likewise, significance of supply chain management theories and their application in aviation business of Cathay Pacific Airways Limited, one of the topmost successful business stories in the airways industry, has been felt by the management of Cathay Pacific, as derived from the case study.
Cathay Pacific Airways Limited stands on a high pedestal in the matter of performance and customer patronage among the world’s leading airlines. It is a financially sound commercial airline. Cathay Pacific has successfully been voted “Airline of the Year” organised by Skytrax Research in 2005 and awarded “Airline of the Year” in 2006 by the Air Transport World magazine. For maintaining its profit ...
Cite this document
(“Aviation Spare parts supply chain management optimisation at Cathay Case Study”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/404742-aviation-spare-parts-supply-chain-management-optimisation-at-cathay
(Aviation Spare Parts Supply Chain Management Optimisation at Cathay Case Study)
“Aviation Spare Parts Supply Chain Management Optimisation at Cathay Case Study”, n.d. https://studentshare.net/miscellaneous/404742-aviation-spare-parts-supply-chain-management-optimisation-at-cathay.
The company is also not able to meet the sudden surge of demands of its customers. In the purchasing department, there is increasing incidents of late and incorrect delivery of required products that has increased its backlog of previous orders. The change of suppliers has also failed as they are also faced with problems of supply at short notice.
However, the company has to make a trade-off between incurring extra transportation costs for a supply of large quantities of small moulded bottles for filling shampoo currently being supplied by Deerfield or switching to a nearby supplier for cost effectiveness.
Supply chain management further involves some a concepts of activities such as; procurement of raw materials, manufacturing and distribution of finished products to various destinations (Harrison and Hoek, pp.173-177). Therefore, this study aims to provide an insight analysis of a case of Bearing Service Inc as discussed.
While supply chain management concepts are applied in both service and manufacturing industry, its complexity varies greatly from industry to industry (Ganeshan & Harrison 1995). This report describes the role of Supply Chain Management (SCM) in the success of a business and analyzes the SCM system followed by Dell, Inc.
The supply chain also exists for the customer, as the customer is the one that adds the value to this process. Proper control and management of the supply chain, particularly for organisations operating in the service industry is important as it is responsible for the improved customer experience, reduced inventories, lower operating costs and improved use of fixed assets (Braithwaite 2002).
Whenever we talk about a strong supply chain, the name of the PC Giant "Dell" comes to our mind. Dell has, over the period of time; build a very strong and efficient supply chain management system by improving on it continuously. Although Dell has a well-managed supply chain, but when we talk about so much of the positive aspects of the system, it does not definitely means that the negatives don't exist.
n experienced in supplying the products because most customers have the tendency to buy such products only when they are satisfied with product information.
As such it is advisable that AVP gets their communication systems changed and improved immediately to avoid losing
These regional picking centres develop by the company in different places, where customers able to pick their orders more efficiently. The main problem behind using this method is that it is rapid as well as high chances that it resulting
1 Pages(250 words)Case Study
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Case Study on topic Aviation Spare parts supply chain management optimisation at Cathay for FREE!