Reference no: EM133148842

BUSS-B 3005 Air Cargo Management - Middle East College

Learning Outcome 1: Understand, evaluate and make a full analysis of relevant developments in relation to the airfreight market/ chain (business environment);

Learning Outcome 2: Understand, evaluate and apply how airlines can maximise their profits and minimise their risks via revenue management strategies;

Learning Outcome 3: Make up an analysis and future perspective for the different market players of the airfreight supply chain and/ or airfreight market.

Assignment Objective

The assignment will help student to understand the nuances of Air Cargo Management and to understand the aspects of making a choice between the various modes of transport and also understand the costing aspects of Air Cargo handling.

Assignment Task
Given below is a case study which the student will have to go through and answer the questions given below/ The student may use the data that is given in the annexure.

The Suhar project-case study

The assignment

Requirements
You will have to analyse the possibility of a feasible and desirable supply chain from Suhar to the different international destinations as required below. In other words you are being asked to assess the feasibility and desirability of the producer's plans.

Case questions

The case should give an answer to the following questions:

• Considering the growth of clusters and the need for connectivity to the appropriate modes, design the possible supply chain alternative(s) that are created by the dynamics of the location of production.

• Ensure that all suggestions are considered according to the following factors:
o feasibility in terms of the required services and allowed supply chain costs;

o and desirable in terms of CO2-reduction and other social costs?

• What should you recommend to this producer?

This assignment involves an analysis on three main parts:

A. Cluster analysis and development:
Cluster analysis requires an introduction of industrial clusters and their importance in the development of a port-city. What are the benefits of clusters and how do they develop infrastructure and modes around production centres?

B. Air cargo operations. Working out the calculations will allow you to identify the best possible option for the optimum supply chain design. You will need to consider the following for this:
a. pay load range.
b. full freighter types (sizes).
c. belly space in passenger (pax) operations.
d. planning and scheduling.

C. In your transport means analysis you have to take the following two scenarios into consideration:
Transportation of the total production (see availability and demand above) with a dedicated freighter operation between Suhar and other international destinations,

i. one of which should cover transport to Saudi Arabia (for this scenario you should take into account the road related constrictions - KSA is a relatively new destination for semiconductors, nevertheless it is an ideal market as it is close to production)

ii. and a transport alternatives to all the international destinations that you are given of in the case (for this scenario, you are given the flights from Suhar Airport. The choice of the international destination should determine requisite mode usage, schedules and plane types in order to undertake the appropriate calculations).

For both scenarios, you have to consider information from the case, such as background of the industry, lead time assumptions according to industry information, any queues that may be identified, such as customs, in-between warehousing and storage time, handling of goods amongst other.
After the international market has been selected, you are required to identify online the best alternative airports for as much direct and cost-effective operations as is possible. Once these have been selected, the flights and the airplane used for these have been identified,

D. Air cargo supply chain design including:
a. the involvement of all relevant market participants and their specific role in the supply chain.

b. all transshipment points and modal choices from the points of origin to the points of destination (please make sure to use pictures/ screenshots).

c. information flows and ICT.

d. allowable supply chain lead time.

e. Customer service aspects:
i. frequencies and lead times from origin to destination and (possible) variations in lead times.

ii. flexibility to adapt the supply of goods to demand developments in the consumer markets.

iii. continuous availability of supplying semiconductors according to demand.

Annexures
• 3 Data sets:
i. table with expected demand and production data of the production facilities in/ out of Suhar.
ii. direct Operation Cost model for cost calculations on airfreight operations.
iii. table with data on departure schedules from Suhar Airport
iv. table on aircraft types and their characteristics.

Use of data
a. define which data you need.
b. decide whether and how to use the presented data of the assignment.
c. collect and research other relevant data.
d. if necessary, make some assumptions but base these assumptions on data and proper reasoning.

Quantitative data analysis
It is recommended to use Excel possibly in combination with Power BI.

The project-case will be approached through conducting the case-method. The case-method is presented as a framework for diagnosis, problem-solving and managerial action taking. The case-method has six steps which are shown in figure 3.1.
The six steps applied to the project-case
You will hand in a report that includes:
- categorizing and comprehending the problem (step 1).
- formulating and defining the problem (step 2).
- interpreting plus finding the causes (step 3).
This reflects to the three main parts A and B as explained in the previous paragraph. So, no worked out scenarios yet.
- define alternative solutions/ scenarios I and II (step 4).

- justify and give evidence for these scenarios (step 5).
- and finally answer the two key-questions 1 and 2 (step 6).

Attachment:- Air Cargo Management.rar