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Logistics management
June 2021
1. One of the benefits of green manufacturing is that it improves the long-term stability of yourbusiness. Companies nowadays are starting to become more and more conscious about theenvironment. What steps would you incorporate in logistic planning to initiate greenmanufacturing in your organization? Explain some examples.
Answer: Common public, business organisations and governments are raising concerns on the increasing environmental issues. Eco-marketing, global warming, recycling, waste dumping, energy preservation, pollution and other environmental issues have become hot topics of debate for people, governments and business firms across the globe. People and governments blame business organizations for their unsustainable business practices that adversely affect the environment. At the
2. Transportation is the operational area of the supply chain that geographically positionsinventory. Explain how you would accomplish transportation requirements and what will beyour transportation system objective?
Answer: Transportation of merchandise is a very important aspect in logisticsmanagement. On an average, transportation cost accounts for more than30% of the total logistical cost of a retail enterprise. Therefore, retailenterprises need to select transport systems strategically and use thesystem in the most efficient manner so that the total logistical cost isminimised. Retail enterprises may adopt a number of transportationsystems. However, different types of transportation systems involve differentcosts. For example, transportation of merchandise by air may be reliableand time saving; but it is expensive. On the other hand, sea shipment istime consuming, but less expensive in
3. Maxx Logistics had planned 500 consignments for the year 2020 but the actual data revealthatit has booked only 300 consignments and out of which 250 were actually delivered. The reportalso suggests that 5 consignments were damaged in transit.
a. What would be the service ratio and breakage ratio of Maxx Logistics?
b. Suggest some advanced form of packaging that Maxx Logistics can use to reduce its storage/transit damages.
Answer: a) Service ratio = No. of consignments booked/year
No. of consignments planned/year
= 300/500
= 0.6
Breakage ratio
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