W9

Question 1

Transport in supply chains

Answer 1

• trade off either:
  1. shifting goods quickly by road and contribute to pollution through emissions

2. pick a slower yet less polluting method by river, sea or rail

Question 2

logistics in management

Answer 2

• logistics management coordinates and controls the product and atrial flow across a supply chain
• involves moving raw materials through to delivery to end customer
• both upstream and downstream movement of inventory
• Because of our reliance on fossil fuels to power various modes of transport, logistics has one of the most significant environmental impacts due to emissions

Question 3

trends in logistics sector

Answer 3

• growth in online retailing - more ppl moving online
• growth in the use of tech in transport
• more frequent out of hours operations and night delivery mass conumerism (instant gratification / AMAZON)
• SUSTAINABILITY AND RISING FUEL PRICES ARE A MAJOR ISSUE

Question 4

challenges in logistics (sustainability)

Answer 4

• emissions from transport:
• Many central warehouse depots in the UK are still located 100s of miles away from the customer
• Still not enough asset sharing and collaboration between brands to create more volume using less trucks

Question 5

inventory decisions

Answer 5

• The question of how much inventory the business should hold is often decided by balancing the costs of holding stock, against that of installing an efficient ordering process/ IT system, which reduces the need for stock in the first place.

Question 6

role of inventory

Answer 6

1. Cycle inventory
   ○ Average amount of inventory used to satisfy demand between shipments
   ○ Depends on lot size
2. Safety inventory
   ○ Inventory that is held in case demand exceeds expectations
   ○ Costs of carrying too much inventory versus cost of losing sales
3. Seasonal inventory
   ○ Inventory that is built up to counter predictable variability in demand
   ○ Cost of carrying additional inventory versus cost of flexible production
4. Trade off - responsiveness versus efficiency (agile vs lean)
   ○ More inventory - greater responsiveness but greater cost
   Less inventory - lower cost but lower responsiveness

Question 7

managing role of inventory

Answer 7

1. review period - stock levels naturally fall over time, must have a review period before they reduce completely
2. reorder point - some stock systems have automatic reorder points where if stock falls below this level, then an order is triggered and sent to the supplier

Question 8

location decisions

Answer 8

• key decision variable in logistics
• Transport costs directly related to location of factories, warehouses, retailers and final customers.
• One option in logistics strategy is to change location
  Rebalance costs and service level requirement

Question 9

Electric Vehicles (Tesla)

Answer 9

• Evs set to increase as affordable fossil fuel supplies dwindle
• Yet lithium mining carries major environmental concerns (shipping them is also spenny)

Question 10

reverse logistics (diagram)

Answer 10

• Purpose is to bring products back from distribution channel or final customers in order to recuperate value or meet regulatory demand
  ○ For example - recycling or avoidance of disposal in landfill
• Reverse logistics is similar to the closed loop supply chain and is the traditional term for recycling activity
  Its all about how to recapture the value of materials, repair and reuse

Question 11

distribution systems (diagram)

Answer 11

• Relates to physical structure and products
• Strong links to supply chain strategy
  ○ Determines distribution structure
• Revolution in distribution systems retailing around the globe
  ○ Internet based retailing
  ○ Adaption of existing sales channels with products for sale over the internet
  E.g Tesco

Question 12

P:D ratio and lead time gap

Answer 12

• Production to demand lead time ratio should be close to 1:1 as possible
• Customer expectations around waiting time will be affected by levels of product customisation

Question 13

order fulfilment cycle

Answer 13

• The key process related to distribution systems
  ○ Also known as the order management cycle
  ○ Can involve many sub processes e.g manufacturing planning
• Order generation and entry can create significant delays
  ○ Many firms have invested in IT systems and ERP
  ○ Small firms do not have these integrated types of technology
• Order fulfilment is key but is often ignored to the benefit of e-commerce
• Passing order as quickly as possible is vital to success
  Fulfilment seen as an essential part of service quality

Question 14

city logistics and coordination issues

Answer 14

• Final delivery to the end customer can be very costly (so built up it is tricky to deliver -> more pollution _> can’t leave parcels outside so redelivery etc.)
• It is where the customer directly experiences the impact of service level - especially if things go wrong
• The majority of last mile operations occur in an urban environment
• The trade off between speed and cost is one of the key issues related to last mile delivery

Question 15

city logistics strategies

Answer 15

• Majority of direct delivery challenges stem from the need to deliver into dense urban areas
• Urban freight distribution strategies are difficult to implement because they involve higher costs and delays:
  1. Rationalise deliveries so that fewer trucks enter the city
  2. Consolidation and used shared freight facilities
  3. Adapt the mode
  a. EV carts
  b. Bicycles
  c. AI / robots

Question 16

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