Assignment Code: BPAS-186/ASST /TMA / July2022- January 2023

Course Code: BPAS-186

Assignment Name: Logistics Management

Year: 2022-2023

Verification Status: Verified by Professor

Assignment A

Answer the following in about 250 words each.

1. Write a note in brief on the principles, activities, and classification of logistics. 20 Marks

Ans) Principles of Logistics: The Seven Rights of Logistics are the fundamental tenets of logistics.

1. The proper products/materials must constantly be made available in order to provide the good or service that is needed at that moment.

2. In Right Quantity to ensure that the appropriate amount is accessible, as smaller amounts cause manufacturing to halt.

3. So that the client may receive the appropriate quality of goods or service, it must be in good condition.

4. At the Right Time means making sure the product or service is available when the client needs it.

5. To the Correct Location, ensuring that the good or service is delivered there where the customer needs it.

6. At the Right Price guarantees that the client-accepted price is charged for the goods or service.

7. To the Appropriate Clients, Partners, Suppliers, and Stockholders

Key Logistics Activities:

1. Order processing: This includes the processes involved in receiving, handling, filing, and recording orders.

2. Procurement: Supply sourcing, contract negotiations, order placement, inbound transportation, receiving and inspection, storage, and handling are all parts of getting supplies from outside sources.

3. Material handling: The movement of products inside the warehouse is referred to as material handling.

4. Warehousing: The act of holding finished items until they are sold is known as warehousing.

5. Inventory: There should be enough inventory on hand to satisfy client needs.

6. Transportation: The physical conveyance of commodities from the organisation to the distributor is included in transportation.

7. Packaging: The logistics team is in charge of packaging the product because it could wind up being damaged before it reaches the client.

8. Information: Logistics is essentially the movement of inventory along a supply chain based on information.

Classification of Logistics:

Inbound or upstream logistics: This is a reference to the procedures used to find, buy, receive, store, and transfer raw materials and components to the product or service department.

Outbound or downstream logistics. This includes the collection, distribution, and flow of information related to the finished goods from the manufacturing plant to the final consumer or buyers.

2. Describe the concept and techniques of inventory control. 20Marks

Ans)

Concept of Inventory Control:

The phrase "inventory control" is used to describe a variety of distinct tasks that are only connected by the requirement that accurate inventory records be kept as well as receipt and issue records that correspond to these two tasks. It is taken to mean both operating and accounting control. The appropriate documentation of material receipt and consumption, as well as the flow of commodities through the plant into completed stock and ultimately to customers, are all aspects of accounting control of inventories. It also has to do with protecting the assets of the undertaking, including raw materials, work-in-progress, and semi-finished goods. Maintaining inventories at their ideal level while taking into account the operational needs and financial resources of the company.

Inventory Control Techniques:

ABC Analysis: According to their values, the materials are divided into three categories here. High consumption goods fall under Group 'A,' and while their worth may only represent 10–20% of all goods, it makes up roughly 50% of the value of the stores as a whole. Medium-consumption items make up 20% to 30% of the inventory and are included in Group B. Inventory in the Group "C" category has a low consumption value. Even if it covers 70% to 80% of the goods, it only costs 20% of the overall value.

Economic Order Quantity: It focuses on making choices about how much inventory should be ordered at any given moment and when to place those orders.

Just in Time: With this system of inventory management, the business only stores what is required for production. When the current stock reaches the replenishment stage, it orders inventory.

Materials Requirements The manufacturers place their orders for inventory using this inventory control strategy after taking the sales estimate into account. The inventory is reordered based on information and market demand.

Vital Essential and Desirable Analysis: Companies primarily utilise this strategy to manage their inventory of spare parts. Items that are essential to an organization's operations cannot be compromised. The definition of essential items is those that are required for the sustained performance of organisational functions.

Assignment B

Answer the following questions in about 100 words each.

3. Analyse the reasons for increasing importance of logistics management. 10 Marks

Ans) For the following reasons, logistics management is crucial:

1) Cost Reduction and Profit Maximisation: Costs are reduced by logistics management, while profits are increased primarily as a result of:

a) More efficient material handling.

b) Swift, affordable, and safe transportation.

c) The ideal number and location of warehouses, etc.

2) Efficient Flow of Manufacturing Operations: Due to timely delivery of materials, appropriate use of resources and semi-finished items in the production process, and other factors, inbound logistics aid in the smooth running of manufacturing processes.

3) Competitive Edge: The competitive edge of a company is created, preserved, and honed by logistics by:

a) Increasing sales by offering superior customer support.

b) arranging for an efficient and trustworthy delivery.

c) avoiding mistakes in order processing, etc.

4) Effective Communication System: Sound logistics management requires an effective information system. Therefore, logistics management aids in the creation of efficient communication systems for ongoing interaction with suppliers and quick responses to client inquiries.

5) Sound Inventory Management: A result of logistics management is effective inventory management. To ensure sound inventory management, which is addressed by logistics management, is a significant issue for production management, finance management, etc.

4. Describe the important components of logistics management information system. 10 Marks

Ans) Here are the main elements of a logistics management information system:

Generation of Data

1. Stock on Hand: Available quantities of useful stock at every level of the system.

2. Rate of Consumption: The typical amount of a product that users received throughout a specific time frame.

3. Losses and Adjustments: Stock taken from the pipeline for any purpose other than customer consumption is considered a loss.

Maintenance of Logistics Records

1. Stock Keeping Records: Stock keeping records must at the very least detail the quantity of stock on hand as well as the number of losses and adjustments.

2. Transaction Records: These are used to keep track of data regarding stock transfers between storage facilities.

3. Consumption Records: These keep track of how much of each item is given out to customers.

Reporting Processes

1. Summary reports that include all necessary data elements, including consumption, losses, and adjustments.

2. Lower levels receive information from feedback reports about their performance, and occasionally they receive additional details about reporting from other facilities.

5. Describe the various types of material handling equipment. 10 Marks

Ans) The various types of material handling equipment are as follows:

Storage Equipment. Typically non-automated, these are used to store or handle reserve supplies. These include shelves, mezzanines, stacking frames, and racks.

Engineered Systems. These include a range of components that work together to provide automated storage and movement. Conveyors, automatic guided vehicles, and automated storage and retrieval systems are some of these.

Industrial Trucks. Trucks can be powered or manual as well. A non-stack truck is primarily used for transportation rather than loading, whereas a stack truck can be used to stack objects. These consist of storing transfer vehicles, automated guided vehicles, and automated electrified monorails.

Bulk Handling Equipment: These are hoppers and barrels that contain enormous quantities of material such as food, liquid, or metals that are transported through conveyor belts or elevators. Stackers and reclaimers, Hoppers, Grain Elevators, Bucket Elevators, Conveyor Belts, Dump Trucks, Screw Conveyor, and Rotary Car Dumper are some of these.

6. Identify the challenges of supply chain management? 6 Marks

Ans) The following are some challenges of supply chain management:

Manufacturing

The manufacturing process is where the supply chains start, and they terminate when the product is in the hands of the customer. The production department is in charge of organising production schedules, estimating how long it will take to manufacture a product.

Data Analysis

A vital part of the supply chain is data management performed by data analysts, data acquisition engineers, data managers, data administrators, or statisticians. Supply chains function more effectively when this data is properly understood and analysed.

Procurement

Supply chains are essential to their continued operation, and procurement, which focuses mostly on locating and buying the raw materials required to make products, plays a crucial role. There is a wide spectrum within this, from purchasing managers who oversee all of an organization's purchasing choices to procurement analysts who concentrate on a single component of purchasing.

Transportation

The primary objective of a supply chain is to get goods into the hands of customers, and transportation makes it possible to achieve this objective.

Customer Service

Customer service, which is a constant and essential component of any relationship between a business and a customer, makes sure that clients are happy with the things they receive.

7. What are Radio Frequency Identification (RFID) tags? 6Marks

Ans) Smart tags are radiofrequency-based automatic identification systems that function similarly to bar codes. It obtains its information by reflecting radio waves from a little gadget or tag. The scanner (reader), the electrical equipment used for exchanging data with the tag itself, generates an electromagnetic field that activates it. The readers can be put on cars and are combined with an antenna, or they can be portable and operated by operators.

Although RFID tags are often more expensive than printed bar codes, their cost is steadily declining, enabling more widespread use. Therefore, this kind of information collection is used by large retailers. Active or passive RFID tags are available.

1. An integrated battery that powers and allows for long transmission distances is included with active tags. They have an excessively intricate electric system that enables the application to be customised based on user preferences.

2. A memory microchip, an antenna made of aluminium or copper, and a support for the chip's protection make up passive tags, which are more affordable and common. They are maintenance-free and lack a battery.

8.Discuss the stages in development of customer success. 6 Marks

Ans) The successive phases in the growth of a customer's success are:

Cost-Effectiveness

For basic services to be provided at a consistently high level of performance and in a cost-effective manner, it is essential that the process and relevant supporting controls be in place. A business must be able to offer customers the core logistical services they require effectively and with little tolerance for error.

Market Access

Customers who demonstrate a readiness to collaborate in an effort to accomplish shared goals are subjected to higher-level commitments throughout the market access stage. In order to allow efficient joint operations, buyers and sellers must cooperate and share basic information in order to access the market..

Market Extension

A commercial relationship is strengthened and extended through market expansion, which is based on striving for zero defects and introducing value-added services. These value-added collaborations include a range of initiatives to boost the competitiveness of chosen clients who are prepared to commit to the provider.

Market Creation

The initiatives to improve customer success are shown in this final step. Researching and creating novel and creative ways to make relatively small consumers more competitive with larger vertically integrated chains is one method of creating new markets.

9. Analyse the environmental issues in logistics management. 6Marks

Ans) Businesses that adapt and reduce their carbon footprints thrive better because partners and customers are more educated than ever. A third-party logistics provider that searches for ways to reduce waste and gas emissions might be a better option. Faster shipping and delivery routes can be found using global positioning systems, and materials from returned goods can be recovered and utilised again in manufacturing rather than being wasted away.  Because of government regulations against idling and emission reduction, as well as increased public awareness of environmental issues, there is a lot more focus on reducing emissions.

Businesses can comply in a variety of methods, including route and load optimization, tracking and reporting emissions, engine upgrades, and the use of alternative fuels. For instance, the most contemporary truck models get much higher gas efficiency, have the finest engine performance, and adhere to environmental standards.   Environmental sustainability is gaining importance on a global scale, and the supply chain is not an exception. Airlines and third-party logistics providers are emphasising being greener to entice shippers as more shippers adopt sustainability initiatives. Furthermore, supply chain participants are becoming increasingly adept at presenting and proving their data, efficiency measures, MPG, and CO2 emissions.

10. List the benefits of outsourcing logistics management activities. 6 Marks

Ans) A company must pick how it will purchase goods and services before deciding whether to outsource. Because outsourcing involves important skills, asset levels, and employment levels, decisions about this activity may have an impact on business strategy. A business practise known as logistics outsourcing involves assigning to a third party services. Outsourcing refers to the deliberate utilisation of third parties to carry out specific logistics-related duties. The main issues with outsourcing are:

1. Focus on core operations and lowering the cost of capital

2. Gaining access to outside knowledge and enhancing quality.

3. Balancing the cost of monitoring suppliers with operational cost benefits.

4. An increase in company operations flexibility.

The Benefits of Outsourcing

1. Reduced costs as a result of scale economies, reorganisation, or decreased labour costs.

2. An increase in efficiency.

3. The fundamental competencies and the plan.

4. Gaining internal capabilities that do not currently exist.

5. Access to resources or information.

6. Flexibility to change with the business and commercial climate.

7. Lower domestic infrastructure spending

8. Access to intellectual property, leadership, and innovation.

9. Funds that could be added as a result of the assets being given to the new supplier.