Exercise 3

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Exercise 3
1. You plan to start a company that will produce household
furniture (sofas, chairs, tables, and the like). Outline a
corporate strategy for competing in the marketplace.
What logistics strategy might you derive from your corporate
one?
2. Explain the meaning of strategic planning for a logistics
system. Selecting several companies of your choice, discuss
which activities should be included and why. How would you
distinguish tactical and operational planning from strategic
planning?
3. Describe as many cost trade-offs as you can that a logistics
manager might encounter in strategic planning
4. Suppose in your company that you are responsible for
distributing Taiwanese beer throughout the European
Economic Community. Suggest a distribution network that
meets the individual goals of (1) cost minimization, (2)
capital minimization, and (3) service maximization. Contrast
each of these designs and suggest what you think would be a
good balanced design
5. Describe how automakers routinely practice standardization
in their distribution channels
6. What economic facts form the basis for the principle of
consolidation? Why is the principle more effectively applied
as the shipment sizes become smaller? Describe a
situation where consolidation has substantial economic
benefits
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