Suppy chain management. Mathematics & Economics Coursework

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Question 1
How service level, uncertainty, safety stock and order quantity relate to each other and the trade-offs between these elements
The vital factor with regards to service level delivery entails speed and availability, that is, anyone placing an order needs it soonest possible and they should be informed that it is there in stock. This factor is influenced by uncertainty in demand and cycles to replenish. Safety stocks would help to maximize on availability and certainty in levels of service within the network. Safety stocks increase would increase on inventory holding costs and whole cost (Zahraei, Seyed Mehdi & Chee-Chong Teo, 79). Trade-offs may be made through large order submission and eliminate safety stocks and keeping close communication with both suppliers and customers to reduce uncertainty.
Question 2
Transport principles and creation of efficient transportation
These have been created to enhance high integrity and standards in the transportation system. Holding the fact that economy of scale gears to reduce on the transportation system’s costs; these principles would allow for the formation of an effective and efficient manner of transportation. Process to transport huge quantities of good for longer distances is likely to save a substantial chunk of money because fixed costs get attributed to transportation and later shared across the whole shipment. This would help to improve on transport activity productivity and lower costs on logistics.
Question 3
Conditions necessary for private and public warehouses combination in a logistical arrangement
Introduction of a warehousing contract which is a tailored extension of public warehousing brings together public and private warehouses. This forms a long-term trade arrangement hence offering specially customized services to a range of specified customers. Risks attached to warehouse operations get shared between the clients and the operator. It would be sensible and logical to merge both private and public warehouses to enable more warehouse capacity utilization (Mangan, John &Chandra, nd). Having a warehouse getting fully utilized is an erratic scenario and therefore, a usual warehouse will have occupation of between 75% and 85%. The remaining 15% to 25% will not be utilized until there is a peak requirement which is when it makes sense to combine warehouses.
Economic justification of a warehouse establishment
Warehouses get warranted in a logistical arrangement when a system and or cost benefit arises from their position that is amid the customers, producers and the suppliers. Such competitive advantage generated by warehouse network establishment sparks from low total costs and quick deliveries. On another view of transportation, warehouse may be used to attain freight consolidation though the assortment may require stock to offer assembly to tailored orders. Other business activities will justify the need to combine inventory storage and flow through operations to serve customers effectively and economically.
Question 4
Logistic considerations in operating in global environment
The first requirement is the requirement on the use of multiple languages applicable to both the produ...