COMMERCE 4OD3 Lecture Notes - Lecture 8: Lead Time, Containerization, Canadian Tire
13 Dec 2018
School
Department
Course
Professor
Document Summary
Transportation: transportation is a costly and time-consuming component of purchasing. Moving materials from suppliers to manufacturers and goods to customers: transportation plays an important role in the tco in procurement, it is very costly, it has a great impact on the bottom line. A well managed transportation program can affect inventory positively through, Supply consistent, timely services: reduce manufacturing/delivery times, help the purchasing organization to reduce inventory, help the purchasing organization to plan production using tighter controls, working reliably within precise scheduling requirements, contribute to jit practices of the purchase organization. Jit used to reduces costs associated with inventory based (prepare precise scheduling) In a transportation program, steps are taken to improve the delivery of goods and services which in turn will add value to the organization. Factors influencing distribution network design: distribution should be evaluated along two dimensions, customer needs that are met (responsiveness, cost of meeting customer needs (efficiency)
