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Why should safety stocks be considered a form of insurance

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Assignment

Short Answer questions:

1. Warehouses have been described as market extenders through enhancement of transportation capabilities. Describe how this can be true.

2. Describe shortly some fundamental issues that must be addressed when joining a Supply Chain Management partnership as a second tier vendor.

3. Explain how Value Pricing in transportation can help both carriers and shippers

4. Why should safety stocks be considered a form of "insurance?"

5. Why does a transporter think in terms of keeping equipment moving?

Essay Question This answer should be a complete essay that draws from all of the various sources of information that you have gained during this course. DO NOT MAKE THIS A SHORT ANSWER.

Your electronics manufacturing company has undergone a huge growth process, but now is facing severe competition from similar enterprises. As a means of cutting costs, your boss is thinking of hiring out its logistics operations to a third person logistics firm. What would you advise him to consider as he makes his decision. (In point of fact, DOD is farming out a lot of logistics problems to private industry. So, like the question above, why would a DOD manager consider doing so. If you want to answer this question from a DOD perspective, feel free to do so.)

Reference no: EM131480465

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