Strategic Logistics Case Study Example | Topics and Well Written Essays - 2250 words

Strategic Logistics - Case Study ExampleBut the development and fix of a dispersal center itself is a semipermanent commitment. Demand characteristics are directly cerebrate to physical-distribution systems. Where learn is widely variable, then distribution facilities are usually concentrated in fewer locales. Where exact is nonstop and rather consistent, as is the case for some food products, distribution facilities bay window be decentralized. A exceedingly variable demand makes it difficult to design effective physical-distribution systems and control costs, while a stable demand permits it. In between these extremes, where demand patterns can be discerned through analysis, as with seasonal products, reasonable distributions systems whitethorn be approximated. Product characteristics help to determine the optimal design and type of physical-distribution system. The ability of products such as luxury items to absorb costs is particularly important. High-value items, if he avily stocked, mean a heavy inventory enthronization and hence increased costs. Their storage is often minimized. For them transportation is a modest amount of the total price. material-distribution systems are geared to the optimization of the system as a whole rather than of any part of it (Simchi-Levi et al 2008).The case of Pedigree Petfoods shows that a manufacturer is confronted with making a choice from among a variety of distribution alternatives. Although generalized solutions to all distribution channel decisions cannot be formulated, general guidelines can. In theory, the economic functions of channel members can be analyzed, significant factors and forces shaping distribution systems can be assessed, and the variety of channel arrangements currently industrious to crucify distribution barriers can be classified (Slack et al 2002). According to Baudin (2005), the overall function of distribution channels is the concentration and dispersion of products in relation to ma rket needs. Four sorting processes are rudimentary to the activities of these channels (1) sorting out breaking down heterogeneous supply into separate homogeneous stock. (2) ingathering bringing together similar stocks into a homogeneous supply. The channel functions, concentration and dispersion, are related to the homogeneity and heterogeneity of supply, and the appropriate sorting process must be provided. Successive channel stages attempt to overcome any discrepancy between product assortment and market requirements. Customer requirements of one or 2 units are at variance with supplier requirements of mass production.The case of Pedigree Petfoods allows to say that physical-distribution activities are performed as a number of dependent functions. To plan, direct, and coordinate physical distribution activities, it is desirable to group them all in spite of appearance a single department. This is usually achieved in retailing and wholesaling under the operations department. Manufacturing generally lacks such coordination. Physical distribution as a concept sees the physical movement of goods as a set of related activities carried on by a number of firms at various levels, linked together to form a total distribution system. Logistical decisions and the design of a companys movement-and-storage system result from cost-market requirement analysis of alternatives. It involves a balancing of transfer costs, operating costs, and marketing factors (Stroh, 2006). The main problem apparent for m the case weigh is that the breakdown of one system can result in breakdown