Reference no: EM132638834

Question 1. Globalisation and international trade has forced organisations to set up facilities in strategic international locations and build business alliances with foreign suppliers. It has made it possible for them to develop a product in one country, manufacture it in a second and eventually sell it in a third. This presents unique challenges for their partners. Logistics management therefore takes on a whole new aspect when overseas trade is involved.

a. Briefly explain how Logistics management has been used to ensure that international trade has grown over the years.
b. As stated above, globalisation has made it possible for organisations to set up shop in one location while manufacturing products in another. To ensure profitability, an organisation would have to choose the right location using the most appropriate location model. Explain why it would be suitable for a service facility to use the factor rating method as opposed to the load-distance model.

Question 2. The quality of a product produced by an organisation not only depends on the processes or input materials but also on the design of a facility.

a. With the aid of a diagram, explain a facility layout type you have learnt in class.
b. How does the above mentioned layout impact the quality of its outputs?