Friday, July 26, 2019
Logistics db Essay Example | Topics and Well Written Essays - 500 words
Logistics db - Essay Example The recent increase in demand of Going Inc planes is evident that, Going Inc has so far differentiated its products to meet their target customers' needs and preferences. Therefore, the main thrust of operational strategy should be on how to reduce production cost and improve company's response to change in market demand. Going Inc. sources its raw materials entirely from U.S markets. Though the company ensure that it gets its raw materials at the lowest possible price, expansion of the raw material sources to include other countries or more conveniently decision to make small parts instead of buying from vendors would automatically lead to even lower cost and better quality. This will involve the realignment of supply chain of the company. According to Heizer and Render (2005), supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them to customers. In order for the Going Inc. to manage its supply chain effectively, it has to improve the speed and flexibility for its manufacturing framework. Currently, the company is relatively slow in its production speed; only fifteen planes per month. To make the matter worse, the production is riddled with scrupulous customization that takes a lot of time and gives very little room for design flexibility. Going Inc.