BPAS 184

LOGISTICS MANAGEMENT

Programme: BAG/2021/2022

Course Code: BPAS 184

Max. Marks: 100

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IGNOU BPAS 184 Free Solved Assignment 2022

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BPAS 184 Free Solved Assignment

Assignment A

Answer the following in about 500 words each.

1. State the operating objectives of logistics. 20

1. Rapid Response: Rapid response is concerned with a firm’s ability to satisfy customer’s requirement in a timely manner. IGNOU BPAS 184 Free Solved Assignment 2022 Instead of stocking the goods and supplying on demand, orders are executed on shipmentto-shipment basis. Here IT helps to postpone the logistical operations to the latest possible time and then execute rapid delivery as when needed by customer.

2. Minimum Variance: Variance is any unexpected event that disrupts system. Logistical operations are disrupted by events like delays in order receipt, disruption in manufacturing, goods damaged at customer’s location and delivery to an incorrect location etc. IGNOU BPAS 184 Free Solved Assignment 2022 Traditional solution to deal with variance was to keep safety stock or use high cost transportation. Such practices were expensive and risky and thus have been replaced by information technology to achieve positive logistics control.

3. Minimum Inventory: The objective of minimum inventory involves asset commitment and inventory turnover. Asset commitment is the financial value of inventory developed throughout the logical system and inventory turnover is the rate of inventory usage over time. IGNOU BPAS 184 Free Solved Assignment 2022 The objective is to reduce the inventory without sacrificing customer satisfaction.

4. Movement Consolidation: One of the most significant logistical costs is transportation. IGNOU BPAS 184 Free Solved Assignment 2022 Transportation cost depends on type of product, size of shipment and distance. Movement consolidation means grouping small shipments together in order to reduce transportation cost.

5. Quality Improvement: Logistics is a prime part of developing and maintaining continuous TQM improvement. If the quality of product fails, logistics will have to ship the product out of customer’s premises and repeat the logistical function again. IGNOU BPAS 184 Free Solved Assignment 2022 This adds to cost and customer dissatisfaction.

6. Life-Cycle Support: Life cycle support is also called cradle-to-cradle logistical support. It means going beyond reverse logistics and recycling to include the possibility of after sale services, product recalls and product disposal. IGNOU BPAS 184 Free Solved Assignment 2022 This means that firms must consider how to make a product and its package (cradle) and the how to remake and reuse them (to cradle). E.g. Cold drink industries use their glass bottle again and again whereas the cans are reused in making pf paper dishes.

Reduced Transportation Cost

One of the major costs associated with logistics is transportation. Lowering the cost of transportation requires movement consolidation. IGNOU BPAS 184 Free Solved Assignment 2022 It’s important to remember that transportation costs are directly influenced by the type of product being shipped, the size of the shipment, and the distance.

Many logistics systems that provide premium, high-quality service often depend on high-speed, small-shipment transportation. IGNOU BPAS 184 Free Solved Assignment 2022 This typically comes at a cost. As a general rule, the larger the shipment, and the longer the distance, the lower the transportation cost per unit. Therefore, having software capable of grouping small shipments for consolidated movement is ideal.

2. Logistics management is important for certain reasons-Elaborate. 20

Logistics management plays a vital part in operating your supply chain. How smoothly your logistics work will make a huge impact on your supply chain as a whole. With the correct logistics management in place, you can save time and money and deliver superior customer service. Logistics management is extremely important if your business is to be successful. IGNOU BPAS 184 Free Solved Assignment 2022 It involves careful control of the goods both leaving your business premises and entering them, thus keeping your company running smoothly as a whole. These are our top reasons to help perfect logistics management.

LOGISTICS MANAGEMENT HELPS YOU PROVIDE A BETTER SERVICE

Good logistics management helps businesses deliver better service to their customers. Correct management of your company’s logistics should make you strive to improve delivery times and offer better customer service to all those who buy your products. IGNOU BPAS 184 Free Solved Assignment 2022 Dealing directly with your customers gives you an advantage over competitors, but only if you give your customers what they want. Customers ask for better service, and it’s your job to deliver it. To meet customer demands you need to make sure you get your supplies or products on time and that you ship out products to your customers as quickly as possible.

INCREASE SUPPLY CHAIN TRANSPARENCY

Greater visibility throughout your supply chain is one of the benefits of logistics management. You need to know what is happening at every stage of your supply chain, take a closer look at your logistics to help you understand how everything operates. IGNOU BPAS 184 Free Solved Assignment 2022 You can take a look at historical data and analyse real-time events too, gaining insight into how things could be improved and how to prevent problems. You could make some significant savings by monitoring your supply chain, as well as delivering better service to your customers and any business partners.

IMPROVE EFFICIENCY AND REDUCE COSTS

Whether you’re dealing with logistics in the UK or international freight logistics, you can improve efficiency and reduce costs with good management. Better supply chain transparency makes it easier to spot where you might be going wrong, as well as the aspects that your company is doing right. IGNOU BPAS 184 Free Solved Assignment 2022 You can identify cost saving measures and keep your expenses lower by keeping a close eye on how everything is managed. Gain more control over both domestic and international freight, whether it’s ingoing or outgoing, for greater efficiency and bigger savings.

Assignment B

Answer the following in about 250 words each.

3. Discuss the types of material handling systems. 10

From the simplest shelf to the most complex lights-out facilities (warehouse automation that can operate in the dark), warehouses use a lot of Material Handling Equipment. It’s hard to remember all the different kinds of equipments, but they fall under four broad types. IGNOU BPAS 184 Free Solved Assignment 2022 According to dictionary.com, material handling is “the loading, unloading, and movement of goods, as within a factory or warehouse especially by the aid of mechanical devices.” Thus material handling equipment means devices that help a warehouse function by moving and storing goods.

1: Storage and Handling Equipment

This is the simplest type, something so basic you might not even think of it as equipment. These are shelves and racks where you store your material in between receiving it and shipping it. They are often designed to utilize vertical space so the warehouse can hold more items. IGNOU BPAS 184 Free Solved Assignment 2022 Bins, drawers, stacking frames, flow racks, cantilever racks, and mezzanines are also included in this category.

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Type 2: Bulk Material Handling Equipment

According to Thomas Network, this is, “the storing, transportation and control of materials in loose bulk form.” If there’s a lot of material altogether, you’re probably using bulk material handling equipment. An example would be a silo, a large cylinder that can hold stuff like grain.

Other examples include:

Stackers and reclaimers: Large machines that are used to dump things into piles or to pick them back up again. They can be hard to visualize, so here’s an animation of one working. Hoppers: Picture a large metal funnel. It stores material and can release an exact quantity out the bottom. Grain elevators: Buildings used to store grain. IGNOU BPAS 184 Free Solved Assignment 2022 They include a series of buckets on a track that automatically transports grain to the top of the building where it can be funneled into different silos.

· Bucket elevators: Similar to a grain elevator, this device features buckets that transport large amounts of material.

· Conveyor Belts: Moving belts that transport material. They can be combined into more complicated conveyor systems which are considered engineered systems. If you want a conveyor system for your business, contact DCS.

· Dump Trucks: Also a type of industrial material transport vehicle.

· Screw Conveyor: A screw-shaped device inside a tube that turns to move material.

· Rotary car dumper: A device that turns a rail car to dump out its contents.

Type 3: Industrial Trucks

These are vehicles or equipment that move materials. Sometimes workers run them, and sometimes they are automatic. Automated Guided Vehicles (AGVs) fall under both engineered systems and industrial trucks.

· Side-loaders: These are used to load materials in narrow aisles where other trucks may be too wide.

· Pallet trucks: Hand-operated or electric devices that slide into pallets to move them.

· Walkie stackers: Thomas Network explains that these “transport and lift pallets like a forklift, though they don’t include a place for the operator to ride in. They come in both powered or manual versions.”

· Order pickers: These vehicles lift a worker off the ground so they can grab high packages.

· Platform trucks: Like a dolly but with a wider platform.

· Forklifts: Operational vehicles used to lift and transport heavy items.

4. Describe the different transportation modes for movement of materials and products. 10

Shipments by truck, ship, train, and plane — also known as road, maritime, rail, and air shipments — are the four primary modes of transportation in logistics. IGNOU BPAS 184 Free Solved Assignment 2022 While each of these modes of transport offers unique benefits, it takes careful consideration to know what method is right for your business.

In the world of business, the enterprise that can ship freight at the lowest possible cost and in the shortest amount of time wins. As a result, constructing an effective supply chain from the 4 major modes of transportation: IGNOU BPAS 184 Free Solved Assignment 2022 road, maritime, air and rail, is an important aspect of transportation management. Understanding the advantages and disadvantages of each mode is critical to establishing a successful supply chain.

Most modes of transportation are configured to transport only passengers or freight, but most modes can transport both. A vehicle, for example, can transport any freight, while a passenger plane has a bellyhold that can hold baggage and passengers. IGNOU BPAS 184 Free Solved Assignment 2022 A collection of technological, organisational, and commercial characteristics distinguishes each mode. Technical characteristics include things like power, ability, and motive technologies, while operational characteristics include things like speed limits, safety conditions, and operating hours.

Transportation Types

Transportation types exist in different countries, depending on the economy, lifestyle, infrastructure, and habitat of the city. Different modes of transportation evolved over time, and the industry is now dominated by four common modes of transportation. IGNOU BPAS 184 Free Solved Assignment 2022 Because of improved and advanced modes of transportation, some of the world’s most difficult-to-reach areas are now easily available.

Road Transportation

Suppliers and companies use road transportation because it is the most favoured and prevalent mode of transportation in the supply chain. IGNOU BPAS 184 Free Solved Assignment 2022 Depending on demand, transportation companies provide scheduled delivery days and even next-day delivery services. Road transport is used to transport all types of cargo, including goods packed or clustered in containers and even those that are scheduled for sea or air transportation.

5. Bring out the requirements of logistics information system. 10

There are three types of information systems that serve different organisational levels. These are operational level systems, managementlevel systems, and strategic level systems. Converting logistics data to information, representing it in a manner useful for decision making and interfacing the information with decision-assisting methods are at the core of LIS. There are certain requirements which are:

a) Organisation decisions: It relates to the decisions to be made at each level of organisation. While designing information system, it must be ensured that the concerned person is entitled to get required information needed for decision making.

b) System requirement: After arriving at the decision on collecting information, next requirement is identification of source of information, the volume and quality of information. A suitable channel of communication will have to be designed to satisfy various requirements.

c) Control requirements. Based on guidelines given by the management, Logistics Information System system should be able to aid in decision making, minimising delays, and increasing efficiency. Control is required to ensure that no errors are made.

d) System input and output data. To satisfy the demand of a customer, several activities are undertaken by organisation which need proper coordination. Action reports are made for the purpose of undertaking activities based on generated information.

Assignment B

Answer the following questions in about 100 words each.

6. There are several factors that impact logistics environment- Explain. 6

The environmental impact in the supply chain isn’t limited to greenhouse gas emissions. Water scarcity, issues with land use, toxic waste, water pollution, deforestation, air quality and energy use are all important considerations.

1. Drive Efficient Supply and Demand Planning to Reduce Overproduction

Misalignment between supply and demand results in too much or too little production of raw materials, manufacturing of goods or distribution of products. This creates rework and waste that all impact the environment. Artificial intelligence, machine learning and predictive analytics can predict likely demand and ensure much more efficient supply and manufacturing processes.

2. Introduce Transparency to Ensure Suppliers Are Using Ethical Sourcing Supply chains managers need visibility into how suppliers are extracting or producing raw materials to ensure they’re following sustainability standards. Blockchain technology is a useful way to capture and verify supplier sourcing practices and IoT devices monitor and report on working conditions and environmental factors.

3. Optimize Routes to Reduce Fossil Fuel Consumption Until logistics moves to electric and other sustainable vehicles, route optimization is one of the best ways to reduce the environmental impact of transportation and distribution. Artificial intelligence can work with GPS devices to optimize international, national and local shipping routes. Advanced analytics can even update routes in real time to take account of congestion and other issues.

7. Discuss the steps in procurement cycle. 6

Steps to the procurement cycle

The procurement cycle, also known as the procurement process, is a series of events that lead up to the final purchase of goods and services. An efficient procurement process allows organizations to save time and money by minimizing delivery times, optimizing pricing, and building long-term relationships with reliable suppliers. Here are the x steps that make up the procurement process.

1. Identify the business need

The procurement process kicks off with a department or team within the business identifying the need for a particular material, product, or service from a third-party partner. This business need can either be for an internal purpose (e.g., office supplies for meetings) or for external purposes (e.g., shoelace material for sneakers the company will sell to consumers). In this phase, the company will identify the item, quantities needed, and budget available.

2. Create a list of suppliers

Next, the procurement team at the company will gather a list of potential suppliers who offer the goods or services needed. Sourcing suppliers is a little more involved than simply listing potential companies that can provide what you need. Integrating strategic procurement best practices in this phase of the procurement process can help you get the best possible list of suppliers from which to choose. [Read more: Understanding the What, How and Why of Strategic Procurement] Price shouldn’t be the only factor that qualifies a vendor for inclusion in your supplier list. When considering different vendors, vet suppliers for reputation, production capacity, communication, and quality. Do your market research — the cheapest option may ultimately end up costing you more in lost time and wasted resources.

3. Select a supplier + negotiate the contract terms

Once you’ve vetted and selected a supplier, it’s time to negotiate the terms of your agreement. This step in the procurement process is foundational to building long-term, mutually beneficial relationships with your suppliers. It’s also an opportunity to take advantage of additional payment term features, like dynamic discounting. To make the most of your contract term negotiations, do your research. Look at past contracts to identify where you could streamline costs and save money, as well as to get a sense of a fair market rate. Consider other elements of the agreement beyond price, including the production or delivery schedule.

8. Identify the gaps that influence customer expectations. 6

Customer Expectation vs. Management Perception

Gap between consumer expectation and management perception: This gap arises when the management or service provider does not correctly perceive what the customer wants or needs. For instance – hotel administrators may think guests want better food or in-house restaurant facilities, but guests may be more concerned with the responsiveness of the staff or the cleanliness of their rooms.

Factors that affect the size of the knowledge gap include:

Market research: Before introducing a new product or service into the market, a company must conduct market research to understand whether there would be any demand for the product, and what features should be incorporated. The better this process is conducted, the smaller the knowledge gap will be. There are methods of ensuring that customer desires are taken on board. These include comprehensive studies, gauging satisfaction after individual transactions (surveys immediately after a purchase is made), customer panels and interviews, and through customer complaints. Communication channels: The fewer the layers between management and customer contact personnel, the more likely that customer preferences will be incorporated into higher-level decision making on the product.

Management Perception vs. Quality Specifications

Gap between management perception and service quality specification: This is when the management or service provider might correctly perceive what the customer wants, but may not set a performance standard. An example here would be that hospital administrators may tell the nurse to respond to a request ‘fast’, but may not specify ‘how fast’.

The second gap in the service quality framework in the policy gap, reflecting the difference between management’s perception of customer expectations and actual customer service specifications. In this scenario, management may have an accurate understanding of customer expectations but that understanding hasn’t been effectively implemented as operating policy. Specificity is the key here. For example, an expectation that the phone be answered in a timely manner is open to interpretation. Is “timely” 2 rings or 3? What if service personnel are already working with customers? For clarity and operational effectiveness, policies should be developed with the SMART – Specific, Measurable, Actionable, Relevant and Timely – goal-setting acronym is mind.

9. List the benefits of outsourcing logistics management activities. 6

Outsourcing means getting advantage of the expertise and structure of an external provider. At D.B. Group we perceive our role of a 3PL provider as being the one reference point for our customers in terms of: Data state that, nowadays 75% of firms are currently outsourcing their logistic activities to a 3PL operator. Here below you can find the main advantages of outsourcing logistics and how D.B. Group can help you achieving better results in a more efficient way.

1. Reduction of indirect costs: By outsourcing your logistics to a partner you will be able to transform some direct costs linked to the logistic activity into variable costs. With our logistics solutions the customer who outsources its logistics won’t have to invest in spaces and warehouses, systems and technologies, employees and safety measures.

2. Improved flexibility. Both in case of growth of your volumes and in case of inflection, you will get high flexibility given by the fact that we can arrange both spaces and personnel on the basis of your actual needs.

3. Expertise and know-how. To have a 3PL partner means following the evolution of the firm. We will make our expertise and know how available to you. At the same time you will have no need to look for some professional lowering the cost of search, education and hiring.

4. Performance improvement. A partner is an expert of the specific subject, that by exploiting expertise and technology can grant excellent performances. This result is given on the one hand by the know-how developed and on the other hand by technologies that are regularly deployed. Furthermore, as an international partner, we can suggest customized solutions for different geographic areas.

5. Customs assistance. Our global network allows our customers to develop their business in new markets. Our clients can use both our customs consultancy expertise, to proceed with a specific analysis of the requirements to export their products, and our international network of facilities in destination countries, to exploit the many advantages arising from bonded warehouses and warehouses located in Free Trade Zones.

10. Bring out the challenges to effective logistics management.

Reduction of transport cost

Transportation costs are a major item in logistics. All freight forwarders and agents try to negotiate the most optimal amounts for the transportation of the particular cargo. However, this is becoming increasingly difficult because of rising fuel prices and, consequently, services for moving goods and materials from one place to another, especially when it comes to imports and exports.

To better optimize transportation costs, managers need to have a clear view of future orders, which is also difficult as people shop online, which can happen at any time. Different types of transport are used to develop better strategies in which containers and more are filled to the best of their ability. An optimal route needs to be drawn. Using logistic software can be very useful for tracking shipments. A third-country transport agency is also a good option for hassle-free delivery but needs to be found more cost-effective.

Processing a large amount of information

Generating timely and accurate documentation makes it difficult for logistics professionals because the process involves many figures, data and compliance with legal deadlines. This requires a great deal of concentration not only in coordinating and tracking shipments, ensuring the safety of staff, loading fleet, etc., but also administrative work. All the accompanying shipment information requires a great deal of attention to detail if done manually. The good news is that there are a number of logistics software that can be tailored to your individual business. The system enables the automatic generation of consignment notes and other documents for import and export when transporting goods by water, air and land. Investing in this direction will save a lot of headaches and continuous monitoring of the strict filing of documents.

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