Logistic assignment Essay Example | Topics and Well Written Essays - 5000 words

Logistic assignment - Essay Example In future, the group plans to get into the process of higher levels of difficulties. According to the plan, with prior approval of umpire, the company plans to move into level two and then level three. The strategy has both strengths and weaknesses. The strengths of the strategy undertaken by the company at present, is that the company is involved in producing the standardised model. It means the methodologies involved are relatively simpler. So, the production is higher. Also, the cost of holding is comparatively lesser and there are no such wastage of resources for reworks, machine down times and scrap. The cost of labour is much lower in the present level of difficulty. Also, it is found that the semi fixed costs are also lower in the first level of difficulty. As the products are standardised, the demand of the products are also higher by almost double. Apart from the strengths, there are also many weaknesses related with the present strategy. As the present strategy caters to the standard model of products, the market is getting to be extinct sooner or later. Therefore, the company have to diversify into advanced models. Also, in the present strategy, the production capacity is lower. As there were both positives as well as negatives for the present strategy, the manufacturing group is moving towards the developed strategy which includes modern concepts like that of forecasting, scheduling and capacity. Forecasting – Though often thought to be alike and confused, forecasting is much different from goal. Forecasting is the way to predict the happenings in the future. Forecasting is part of the decision making mechanism of the company. The major implementation of the function of forecasting is that in the inventory control, requirements of manpower and the selection of capacity and the location of facility (Loerch, n.d.). It is good for the manufacturing group that it has incorporated forecasting with in the future