Operations, Logistics and Supply Chain Management PDF
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Added on 2020-07-22
Operations, Logistics and Supply Chain Management PDF
Added on 2020-07-22
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Understanding Operations, Logisticsand Supply Chain Management
Table of ContentsINTRODUCTION...........................................................................................................................1Chosen Area of operation, logistic and supply chain .....................................................................1Location and Layout........................................................................................................................4EASSY PLAN FOR TOYOTA.......................................................................................................8CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONOperation Management refers to such business practices that are concerned withdesigning, implementing and supervising operations that convert raw input into final goods andservices. It defines the responsibility of business enterprise in terms of meeting buyer'srequirements effectively and using scarce resources of firm in a systematic and efficient way(Carter and Liane Easton, 2011). Supply chain management is a network of all business activitiesrelated with acquisition of raw material, manufacturing, distribution of final output. This reportcovers the supply chain management of Toyota which is a Japanese automotive manufacturer.This assignment basically covers that Toyota is facing related to its operational and supply chainissues. This project also covers manufacturing and delivery process of Toyota and howcollectively they work together in order to effectively achieve both short and long termobjectives. Chosen Area of operation, logistic and supply chain LOGISTIC MIXIn order to manage production and services operations effectively and efficiently, Companies arerequire to take various decision related to capacity Channels, transportation, managing inventoryand networks are made in order to constructively achieve both long & short term objective ofcompany. Operation Manager is require to analyse each factor and discover best solution thatenhances overall effectiveness of manufacturing operation. Below mentioned are the followingkey elements of Logistic Mix : Channels: Organisation manufactures products in order to satisfy the demand of targetcustomers and for this, they need to sell their products to ultimate consumers. Thus, an urge ofdistribution channel arises. According to Davar, 2015, distribution channel can be defined as anultimate way through which different intermediaries sell or transfer their products to ultimatebuyers. These inter intermediaries are in the form of dealers, retailers, wholesalers and agents.Channel of distribution is broadly classified into three categories: Zero-Level Channel: At this level, manufacturer directly distributes its products toultimate consumers. This is also known as Direct Selling as there is no involvement ofintermediaries, producer made goods and send directly to buyers for their finalconsumption (Gligor and Holcomb , 2012).1
One-Level Channel: In this channel, final goods reach to clients not by ultimatemanufacturer but by the retailer. Producer sells its products to retailer and then thedistributor sell it to final clients. This level is popularly known as the mobility of goodsthrough retailer. Two-Level Channel: When different types of intermediaries are involved in deliveringfinal goods to consumers, such level is known as the Two-Level Distribution Channel.This is commonly known as the distribution through retailer, wholesaler and distributor(Hugos, 2011).(Source: Levels of Distribution, 2017)Toyota has divided its marketing network into four channels of distribution which consists of:Toyopet (medium-size)Toyota Corrola (compact)Toyota (mostly large cars, high ends) andNetz Toyota (compact)Toyota offers more than 60 car models to its ultimate consumers and their eachdistribution channel is consist of only 15-25 models. Transportation: In order to have cost efficient and effective supply chain management,every business organisation tends to have an economic and responsive transportation network so2Illustration 1: Distribution Channel
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