1-Do you agree with this statement? Explain

The just in time approach has become popular because it helps significantly reduce the cost of inventory. Rather than having a stockpile of product collecting dust in a warehouse that you need to pay for, instead you distribute supply as needed. This approach differs as EOQ is oftentimes more basic. Think shipments on a schedule. JIT can be tremendously helpful if your demand forecasting is excellent. However, I don't think it should be employed in every industry. There are industries where a shortage of supply is catastrophic. Meaning that if your forecast is off, you are going to be in trouble. Think something like medical supplies. I don't want my IV bags to suddenly be in demand because of a pandemic or sudden large emergency. That kind of thing will lead to people's lives being on the line. However in most industries where things aren't so dire, I can certainly see this proving to be useful.

2-Do you agree with this statement? Explain

Customer service is another variable to consider and track metrics. Like all phases of a business these measurables are a way of determining if the thresholds and objectives are met. Customer service is an extension of the outbound logistics cycle. The outbound customer service performance metrics include delivery time (i.e., cycle time), receiving what/amount that was ordered (i.e., accuracy), response time, and quality of end item (i.e., damage free). Langley et al., shares the four dimensions of customer service to include time, dependability, communication, and convenience.

Customer service metrics can be impacted by increased production, increased deliveries, additional call center personnel. An organization must find the ratio of these opportunities to invest while tracing the level of service obtained. Attempting to achieve 100% service level would put most organizations out of business as it is too costly to sustain. Finding that acceptable threshold where your investment still issues a profit (i.e., acceptable margin) or Return on Investment (ROI). Organizations must perform analytics to determine their acceptable margin and ensure customers will continue to come back. You push the margin too far and it results in lost customers and with potential impacts to inbound customers (e.g., supply chains demand) as well.