Logistics has a lot of different services that relate to different business trade. Every subsystem logistics have a lot of functions that can improve it. In addition, subsystem logistics are a group of interconnected and interactive parts that performs an important job or task as a component of a larger system. Also, in logistics subsystem people should always try and have a strong subsystem in place so that they can get all the things you need to done quicker. However, they need to know how everyone in a subsystem will react in a project so that they can maximize the time spent on it. Optimizing subsystems (whether those subsystems are functional departments, production sites or individual processes in the manufacturing cycle). …show more content…
Important Physical Distribution functions contain customer service, order processing, inventory control, transportation and logistics, and packing and materials. For example, In essence, physical distribution management (PDM) involves controlling the movement of materials and goods from their source to their destination. It is a highly complex process, and one of the most important aspects of any business. PDM is the "other" side of marketing. While marketing creates demand, PDM 's goal is to satisfy demand as quickly, capably, and cheaply as possible. Reverse logistics: is for all operations related to the reuse of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. For example, anytime money is taken from a company 's Warranty Reserve or Service Logistics budget, that is a Reverse Logistics operation, Reverse Logistics is the scientific process of managing assets, in every department in all industries and across all disciplines”. Not only supply chain solutions in the High Technology Industry, but all industries and every department from Legal to Human …show more content…
(1993), Logistics subsystem and supply chain management: strategies for reducing costs and improving service, Pitman, London. Hisami, K (1996), Manufacturing systems engineering: a unified approach to manufacturing technology and production management, 2nd Edition, Taylor and Francis, London. Macdonald, J. (1996), Understanding business process re-engineering in a week, Headway, London. Porter, M. (1990), Competitive strategy, Free Press, UK. Schonberg, R. (1986), World class manufacturing: the lessons of simplicity applied, Free Press, New York: Free Press.
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Provided by James R. Martin, Ph.D., CMA. Professor Emeritus, University of South Florida. Abel-Masked, A. and M. Kwame. 2009. Relationships amongst value creating variables in an international freight forwarding and logistics firm: Testing for causality. Journal of Applied Management Accounting Research (winter): 63-78. Anderson, P. F. 1979. Distribution cost analysis methodologies, 1901-1941. The Accounting Historians Journal 6(2): 39-51.Anderson, S. W. and H. C. Dekker. 2008 Strategic cost management in supply chains, Part 1: Structural cost management. Accounting Horizons (June): 201-220.Anderson, S. W. and H. C. Dekker. 2009. Strategic cost management in supply chains, Part 2: Executional cost management. Accounting Horizons, November):
4. The Micro Environment – ??? To determine the best strategic position, it would be essential to understand the landscape of UPS is situated in. Hence, Porter’s five forces analysis is performed to comprehensively discuss the logistics industry in the European Union.
Wilkerson is currently using the traditional costing system. “Companies that use the traditional costing method assume that the volume metric is the underlying driver of manufacturing overhead cost.” Traditional product costing was established when direct material costs and direct labor costs accounted for the bulk of product costs incurred inside a firm. In the Wilkerson company, materials and labor costs are centered around the prices of materials and labor rates.
It is imperative to understand the current conditions of what materials are candidates for return, compared to the performance level of returns achieved each day. The delta between the identified material returns and the actual returns will provide information for goal setting. Additionally, with the transfer of raw materials into the warehouse, there must be a transaction to receive it into inventory and distribute it to the appropriate location. At that point, the process will be complete for the appropriate accounting of the materials, creating availability for consumption at the next production demand. The data collected will be influential in developing a robust procedure for each assembly line to follow in a consistent manner.
Throughout the years, several different methods have been developed, which are dependent on the respective regulations of countries and institutions, such as the Internal Revenue Service (IRS). The most common inventory methods include FIFO (first-in, last-out), LIFO (last- in, first-out), HIFO (highest-in, first-out), FEFO (first-expired, first-out), as well as the average costing method (AVCO). Each of them has their specific advantages and disadvantages, and comes with certain restrictions and regulations (Lee and Hsieh, 1983, p.7). This paper is going to take a look at the choice of inventory accounting methods of FIFO and LIFO, and is therefore not going to consider the other inventory accounting methods, as that goes beyond the topic of this
Edmonds, T. P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill
Brand described as a network of facilities and distribution options. The researchers argue the supply chain include different functional areas such as inbound and outbound transportation vegetables, chicken and meat, warehousing, inventory control, suppliers foods, supply management forecasting, production planning, order processing and customer services (Dwivedi, Dwivedi and Tewari, 2014). Supply chain management consists of managing the production network from raw material supplier to final customer. Regardless of any doubt, any industry faces a range of challenges in the supply
Abby prefers to allocate indirect cost using activity-based costing for these orders, but recognizes that not all costs are driven by volume of output. Abby prepares a
2. TECHNOLOGY: Automation is led way to decrease in the cost of production. Techniques to optimize production means the suppliers will supply more at a lesser rate. Coca cola recently implemented the Siemens automation to increase the capacity of its bottling plants. This ensures that the capacity of the plants increased manifolds and thus lowering the cost of production.
Capacity planning This is the process of knowing the production capacity an organization needs to meet the changing demands for the products. It helps to determine the quantity of the product needed by a firm to meet the demands of its customers. The capacity planning elements for Walmart are; facility, product and service, and human resource.
Here 70% of our business is done with military so in military terms logistics means the organization of moving, housing and supplying troops and equipment’s. No doubt logistics is an important activity as there is a process for doing a work and there must be proper coordination and cooperation. Lack of proper coordination means, high chance of getting errors in work. This case analysis focus on providing the recommendations to the top management to make sure their activities are going smoothly in the market and they can be ahead from their competitors in this competitive world. In easy words, the organization wants to improve their delivery to their customers.
Also, various methods of controlling costs such as standard costing system and flexible budgets have close relation with the variable costing system, in turn making it easy to use those methods. 3. Companies using variable costing system are able to prepare income statement in contribution margin format that provides necessary information for cost volume profit (CVP) analysis. On the flip side, this data cannot be directly obtained from a traditional income statement prepared under absorption costing
As a result of the events of Dremliner, Boeing has improved their supply chain management process by incorporating continuous improvement strategies and implementing ways to encourage open lines of communication amongst their supply base. Boeing 's supply chain management places emphasis on on-time deliveries and streamlining common standard processes across their suppliers. Boeing has developed several tool to not only monitor and audit the best practices and overall performance of the supplier, but aid in collaborative communication amongst their entire supply base.
International Business Machines (IBM)- 1) Introduction IBM (International business machines) corporation is one of the biggest multinational computer technologies and IT consulting company spread over 170 countries with 330,000 employees. It has its headquarters in Armonk, New York, United States. IBM started its business on June 16, 1911. It is the manufacturer of computer parts for hardware and software and, consulting services and hosting services. And also offers services in infrastructure.
The best companies in the world are discovering a powerful new source of competitive advantage. It's called supply chain management and includes all onboard activities that bring products to market and satisfied customers. The Supply Chain Management program covers topics from manufacturing operations, transportation, purchasing and physical distribution for a single program. Coordinated the successful management of the supply chain and all these activities integrated in a continuous process.
Modern Stores The interviews were taken and the data were collected and we had also taken help from other articles from academic journals for an overview over the data. At the later step, we wanted to understand that what actually influence the performance of the Cold Chain Logistics. And regarding the elements which is able to manage the Cold Chain Logistics most effectively in a company.