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Example research essay topic: United States Postal States Postal Service - 1,562 words

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... e concept of just in time inventory seems to be a very straightforward concept to grasp. When we look at the underlying, facts JIT would be a perfect efficient cost effective process for almost any firm. However, there may be some drawbacks to the whole process of JIT. The process of JIT might not be the best logistics process for many firms.

To implement a good JIT plan you need to be able to have suppliers that are able to meet your need and they need to be in a location that is not to far from your plant. In other words, the suppliers that you are using for your product line need to have a system implemented where they are on a schedule that meets the needs of your company. The whole idea of this process is to reduce the levels of inventory and the costs of production to create a higher profit return. If the suppliers are not able to meet your schedule, you will have problems using JIT. With the JIT process, your inventory levels will be reduced to nothing and you will have little or no safety stock to keep production rolling. A good example of the JIT method was the company we discussed in class.

The Georgia Pacific company that used the glue to compress the particles of wood together to create particleboard. The Georgia Pacific company had a good JIT plan they would have three bays in their production facility where tanker trucks could come and go from. The tankers would be hauling glue from a local glue manufacturer and there would be one tanker in a bay being unloaded right into the production line. In the mean time, there would be another truck in transit from the Glue Company.

However the two companies were smart enough to place a third truck at the GP production facility as a backup incase something happened. This is a clear example of how the two companies are working together to reduce the cost of GP storing glue in a vet for the use in their production line. By reducing production and transportation costs companies such as GP are then able to pass the savings onto the consumers. In turn, the process of JIT is a great logistics strategy that can be implemented and have great returns as long as all parties involved work together to integrate all of the logistics activities involved in the business. 4. What constitutes and MRP system, and why would it be a good idea? Mention both types.

The term MRP is a term that maybe interpreted in two forms. There is MRP I and II. MRP I stands for materials requirements planing, and MRP II stands for manufacturing resource planning. Materials requirement planning (MRP I) was the first of the two to come about in the 1960 's. MRP I is considered a computer-based production and inventory control system that attempts to minimize inventories while maintaining adequate materials for the companies production process (txt 203). Based on this statement MRP I is easily correlated with the JIT method of inventory planning that I discussed in the previous essay.

Both of the systems are trying to establish a method where the companies inventories are minimized, yet there is always an immediate supply of goods and services to complete the production process on a day to day basis. MRP I is said to be employed when one or more of the following conditions exist: when the demand for a certain product is not continuous or unstable during a firm's normal operating cycle, when the demand for materials depends directly on the production of specific inventory items or finished products, when the purchasing department and its suppliers, as well as the manufacturers, have time to take other orders on a weekly basis (txt 203) The other form of MRP stands for manufacturing resource planning (MRP II). This is considered the newer or more updated form or MRP I. MRP II is a system that was established to compliment MRP I with the edition of some financial, marketing and purchasing aspects. The MRP II system includes all of the activities involved in the planning and control of production operations.

It includes components such as the planning and production, resource requirement planning, master production scheduling, MRP I, the control of the shop floor and purchasing. Both MRP I and II are a good system of however one may outweigh the benefits of the other. Some advantages of both are as follows. (txt 203 / 205) There are also disadvantages to the systems. With the MRP system, we tend to have some more costs that might not outweigh the benefits of adopting the system.

With this system, our inventory levels will be depleted so the firms will have to purchase materials more often and in quantities much smaller than when they warehoused goods. This leads to higher transportation costs and sometimes it can lead to the loss of the volume discount. However, if the capital gain from the change in operations is greater than the loss from adopting the system then the MRP system is a good system for your firm. A good example would be the warren Communications Co. in our book that adopted the MRP system and made a first-year savings of $ 850, 000 of which most came from the reduction if inventory and storage (txt 206). Based on the information provided in the text the MRP systems are a good method of reducing inventories and creating a better more efficient personnel department.

As I said earlier the MRP system plays along with the JIT method and creates a substantially large capital benefit to a firm if implemented correctly. 5. What should be considered in transportation choices? The transportation system of a firm is a very touchy subject to examine because it has such a large impact on a business. For many firms that transportation costs are the largest logistics cost in the whole process. Transportation is a service that moves a product or set of products from the point of origin to the destination. There are many different forms of transportation such as Motor carriers, Railroads, Third parties, Water transport, Air cargo and Pipelines and a combination of any (intermodal).

All of these modes of transportation play a large role in the act of the transportation process. When deciding on transportation for your firm's products there are many things that need to be taken in to consideration. The transportation costs and pricing or the products, which mode of transportation to use, the services offered, and the services offered by the companies. Based on the carrier types listed above, the transportation manager or whoever is in charge of shipping will determine which mode of transportation best fits the customer service requirements of the company. Some things that management will take in to consideration would be to select the transportation mode that best satisfies the following criteria. On-time pickups and deliveries, prompt responses to customer service enquiry's, consistent shipping times, the most competitive rates and the ability to track shipments.

The management will then review the information they collected and choose the mode of transportation that best meets the needs of their firms decision criteria (txt 253). There are some points that we need to draw attention to about the decision process. As I briefly stated above things like the costs and customer service availability of transportation methods need addressing. Many factors lead to the price to ship a product. Just like the United States Postal Service, when you go to ship something they are going to want to know a bit about the contents of the package.

Factors such as: density, stability, ease or difficulty of handling, or the liability. The density of a product just refers to the weight of a product. Stability of a product would refer to the ease at which a product is storable at the least amount of space. A good example would bee if shipping by motor coach you would like to be able to cube out the truck to be more efficient. The difficulty of handling a product is also related to the stability of a product.

A product that is more difficult to handle would be more costly to transport. Finally, the liability of a product refers to the importance of the contents in the shipment. A good example would be here again if a package you are shipping with UPS or the United States Postal Service is of any importance they want to know and they ask if it needs to be insured. When considering a mode of transportation there will always be many decisions to make.

The best thing to do is weigh all options and try to think of the cost benefits or trade off involved in making the shipments with the different carriers. What kinds of services do the companies off and are they suitable to your needs. Remember the old saying the cheapest things are not always the best choice. Do what is best for the company and the consumers.

The best way to retain customers is to establish a bond with them through good customer service. By management weighing out all of their options and choosing the best transportation mode for their shipments customers will keep doing business with your firm. Bibliography:


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Research essay sample on United States Postal States Postal Service

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