PROC 5850 Logistics
1. KLF Electronics is an American manufacturer of electronic equipment. The company has a single manufacturing facility in San Jose California. (20 points)
KLF Electronics distributes its products through five regional warehouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current distribution system, the United States is partitioned into five major markets, each of which is served by a single regional warehouse. Customers, typically retail outlets, receive items directly from the regional warehouses in their market area. That is, in the current distribution system, each customer is assigned to a single market and receives deliveries from one regional warehouse.
The…show more content… It will reduce the facility cost of the company. The safety stock required in centralized system is also less. It will also reduce the inbound transportation costs. The disadvantages of such a system are that the lead time will increase and it will become difficult for all the customers to easily approach a single warehouse. The activities will become complex and the outbound transportation cost will increase.
2. As the Purchasing Manager in a manufacturing firm, you would be expected to identify and know various aspects related to transportation/traffic in order to effectively perform your job. Today, during the staff meeting, your boss asked you for advice on two aspects of transportations: (20 points)
a. What are the major considerations when handling materials?
i. Discuss the following: 1. Load Unitization, 2. Space Layout, 3. Storage Equipment Choices, and 4. Movement Equipment Choices.
There are various considerations while handling the materials and care should be taken, while working over this activity. The following things need to be considered:
Load Unitization: This is an important factor of consideration for material handling. Load unitization is the packaging and arranging of the item or items in a particular manner that can be handled as a unit. It should be considered that the items are banded in a securable manner. In this, the physical packaging of the