LOG456 W8 “Final Exam”

Question 1

The supply development for supply chain metrics comprises of five Steps. Stage 1 involves planning whereby organizations decide on their operating strategies by weighing the merits and demerits of diverse options presented by intercontinental supply chains. Stage 2 encompasses sourcing and entails organizing how an organization will acquire its cargo at the best possible cost, at the correct time as well as in the right quantity. Stage 3 marks the making phase where scheduling of production operations, testing of products, packing and eventually releasing the products are done. It may also include managing rules governing, performance, data storage, regulatory compliance, and facilities. Stage 4 is the delivering phase which entails all the steps from processing client inquiries to choosing distribution plans and transportation choices. Warehouse and inventory management strategies should also be clearly stated at this stage. Stage 5 is the returning step, and it incorporates all that pertains to the management of all returns of defective goods or “end of life” products. This includes product condition identification, returns authorization, shipment scheduling, refunds provision, and defective product replacement.

The most challenging stage is stage 1, planning because all the other four steps depend on its effective execution. Before outlining what will happen in each of the subsequent stages, goals of any operation that will take place in the supply chain are first stated in step one.

Question 2

The components of information quality include integrity, objectivity, and utility. Objectivity is composed of substance and presentation elements. The element of presentation ensures that information is presented accurately, clearly, and completely without bias, whereas substance ensures information reliability and accuracy is achieved. On the other hand, the utility component is concerned with information validity, while integrity deals with information security.  All the components of information quality are focused on information completeness, accuracy, and consistency. This has a considerable impact on the quality of decision making. For instance, research has shown that better information quality results in more effective and accurate interpretations of a specific situation or issue. This, in turn, determines the situations and issues requiring attention.

Question 3

Production efficiency and connection to different logistic systems solely depend on transportation. The existence of a variety of products and services brings about a diverse range of transportation needs, thus the reason for the existence of various modes of transportation such as road, water, rail, and air. Each of these modes has its advantages and disadvantages. For instance, Road transportation is highly flexible, can avail door to door services, and it guarantees cargo safety, but its dependency on climate and high costs for long distances limits its usage.  Air transportation is the fastest and highly reliable. However, its usage is limited because it is expensive, and it may be affected by diverse weather conditions. Water transportation, on the other hand, is the most economical and safer because of low accidents. Its usage is limited because it is affected by adverse weather conditions, slow, and its initial capital of investment is high. Rail transportation is preferred because it rarely impacted by weather, provides loading and offloading services, and it has no traffic or congestion. Its usage is limited because it has high initial capital investment and the fuel used by the trains is also expensive.

There may not be a more suitable mode of transportation than another. These because transportation needs are diverse.  All is required is for individuals to prioritize their needs, understand shipment options available, and compare costs when they are planning for shipment.

Question 4

Appropriate methods for goods transportation are chosen based on the cost, goods durability, goods nature, and consumer market fragment as explored on the following goods. For example, the appropriate mode of transportation for apple iPad is air. This involves the use of aeroplanes. The mode facilitates the faster movement of stock and is the safest, given that the longtime taken using water transportation has some risks of cargo sinking or getting hijacked. For pressure-treated lumber, water will be the appropriate mode of transport which involves the use of huge ships. This is due to the bulkiness of the cargo, thus requires large shipments. The load is also durable. Meaning it will reach its destination without losing value no matter the number of days taken. True Religion jeans can be appropriately transported through the air using aeroplanes. This due to the high demand for True Religion jeans, thus quick delivery to customers is required, and the air is the fastest mode of transportation that can guarantee a quicker delivery. Coal, on the other hand, can be transported via rail transportation using rail trunks or trains. The mode has low maintenance cost and long-life permanent assets, making it cheap.  Besides, the large shipments provided by this mode ensures the transportation of coal in bulky.

Question 5

The process of supply chain transformation usually requires organizations to strive towards aligning the supply chain with their overarching business objectives and goals to acquire maximum efficiency. The process is overwhelming, and organizations experience various challenges. Therefore, they are required to consider some priorities to make the process a success. For instance, organizations should first consider their chief goals and orientate their supply chain activities around those goals. Organizations should then consider letting the stated goals to shape the pattern that the supply chain goals should take.  Finally, organizations should consider aspiring for the creation of well-defined planning processes.