Question 2

On Time Modern Carriers is a Third Generation Logistics provider in the supply chain network. They have been contracted by several entities in the supply chain to oversee transportation of goods. They have received a lot of business due to their reliability however their reputation has suffered some damage due to several late deliveries. They have focused on Rail, Air and Water to cover transportation over longer distances but have subcontracted transportation by trucks to cover the road requirements of the transportation network.

The manager of On Time Modern Carriers are considering ways to maintain their reputation as their business grows. The company is considering the following network options for a client whose business is growing substantially:

i.Direct Shipment

ii.All shipments Via Central DC:

iii.Direct Shipments with Milk Run

The client is keen to avoid exorbitant costs but at the same time would like fast access to items needed.

Required:

Explain the relative merits and drawbacks of the above options. Advise the client regarding the preferred network option. (Total 20 marks)

Question 3

Glover, the manager of Sonix Distribution system, is contemplating the implementation of an advanced Information Technology system. Sonix is a key partner in the supply chain network for highly specialized electronic circuits used in the manufacture of computerized systems installed in certain types of vehicles to boost navigational ability. For the past few quarters, demand for these items has grown but Sonix has moved from a situation of having components on hand until they become outdated to serious lags in supply when the components are needed by manufacturers. Decision making has not been effective because information available to managers previously has proven less than adequate for effective decision making.

A. Describe possible problems with information received previously that may have contributed to it not being suitable for effective decision making. (6 marks)

B. Discuss with suitable examples THREE ways in which information could enhance performance of the Supply Chain. (9 marks)

C. By using an example relevant to the type of business Sonix is operating, explain a way in which an improved IT system could be applied to the Supply Chain Macro Processes. (5 marks)

(Total 20 marks)