Why are the four primary service outputs of spatial convenience, lot size, waiting time, and product variety important to logistics management? Provide examples of competing firms that differ in the level of each service output provided to customers.
Answer to relevant QuestionsUsing the ten categories of customer expectations in Table 3-2, develop your own examples of how customers might evaluate performance of a supplier. What, in your opinion, would be major logistics challenges faced by Unilever in this initiative? What is the underlying rationale that explains why firms should segment their purchase requirements? Explain the concept of procurement strategy portfolio. Why would a company's costs of manufacturing and procurement tend to increase as the firm changes from a MTP to a MTO strategy? Why would inventory costs tend to decrease? Identify and discuss the major forecast components. Why is it important to decompose demand into these components when developing new forecasts?
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