Factors Influence Network Design Decisions

1) Explain how Zara uses e-Supply chain management to obtain a competitive advantage

1.reduced costs through lowered cost structure and increased flexibility is one of the reasons for Outsourcing(T/F) 2. cross-docking is a logistics practice of unloading goods from impound Transportation vehicles and loading these Goods directly onto outbound vehicles with little or no storage in between(T/F)

Describe vendor-managed inventory (VMI).  How is it related to outsourcing?

Which “Classification-by-Type-of-Customer-Order” do you think Amazon use and why? Make-to-order, make-to-stock, make-to-assembly, or combinations thereof? What steps have been put into place to ensure speed and fast shipments, at the fulfillment center?

storage and display. Show how each BI component works with a distributed warehouse.

In your own words, describe EDI and how it works in a logistics environment.

DEFINE Expected value of demand

b) Impact of the Fourth Industrial Revolution on Supply Chain Lea Manufacturing industry Additional Revenues 22.6% 20.1% Cost Reduction 17.6% Cost Reduction + additional revenues 17.6% Logistics Service Additional Revenues 33.6% 14.5% Cost Reduction 34.2% Cost Reduction + additional revenues 17.8% 每 Retail Additional Revenues 33.3% 25.5% Cost Reduction 7.8% Cost Reduction + additional revenues 33.3% Source: http://www3.weforum.org/docs/WEF The above diagram shows the expected impact of digital transformation on the cost situation in companies practising Industrial Revolution 4.0 (IR 4.0) principles. a) Discuss two (2) factors that could benefit the logistics industry when embracing the digital transformation initiative. Elaborate two (2) activities in logistics operations that require changes to fulfil the digital transformation to IR 4.0.

13.2 A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering moving the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day, should they ship by air?