LOG503 MOD 3 Case Assn - Logistic Planning Essay

LOG503 MOD 3 Case Assn - Logistic Planning - Essay Example On the basis of the aforementioned concern, the paper intends to briefly discuss about the logistic strategies of Ford in the global automobile industry. Moreover, the location design of Ford concerning distributors or retail, influence of the customers towards location decision of Ford and its effect on logistics will also be taken into concern in this paper. Impact of Location and its affect on Logistic Planning The location of production as well as distribution units can impose significant impact and affect logistic planning of any organization. This is owing to the reason that an effective location plan can facilitate an organization to increase the satisfaction level of the customers by providing them their desired products at the right time. It has been apparently observed that an extensive network of suppliers and distribution channels is regarded as one of the major strengths of Ford that enabled the organization to gain momentum in the global automobile market. ... the cultural perspectives concerning the locations of its different production as well as distribution units with the intention of increasing the satisfaction level of the customers at large (Leontiades, 1987). In general, the location concerning plant and logistic network can be effectively organized or managed depending upon the tradeoff scenario of any particular organization. The significant concern of plant location generally encompasses different factors such as material cost, labor cost, infrastructure facilities, business services, customer or market, available suppliers as well as resources, government regulations and existing competition (Lu, Kuo, Tseng & Liaw, 2007). With this concern, the logistic network and overall supply chain management activities of Ford are conducted by Penske Logistic. In this similar context, Penske has been identified to be a leading service provider of logistics for Ford since the year 1999. It executes streamline operations for Ford through ado pting as well as implementing six-sigma initiatives in terms of maintaining and creating more effective as well as centralized logistic network. As the leading logistic provider of Ford, Penske performs effective and quality based logistic management functions that further ensure to mitigate different challenges resulting from inbound inconsistencies, unnecessary costs and shipment overages (Penske, 2013). Comparison of Location Decision of Ford To a Distributor According to the global business scenario, it can be recognized that the exact location choice is quite important for an organization to accomplish its predetermined business targets. In order to determine effective location decisions, the organizations in this present day context must need to focus upon enhancing their various

Determining How Costs Behave Research Paper Example | Topics and Well Written Essays - 500 words

Determining How Costs Behave - Research Paper Example The purpose of this assignment is to study the behavior of fixed, variable and total cost at different level of business activities. The behavior of cost is related to the level of business activity (â€Å"Identifying Cost Behavior†, n.d.). It implies that a change in business activity exerts influence on the parameters of the above equation. This reaction of it is called cost behavior. Some costs may stay same, and others may change proportionally in response to a change in business activity. That is why; for managers of a company, it is necessary to understand how a cost reacts to a change in the business activity. This knowledge helps managers to determine future profit from a new product, prepare a forecast and create a budget (Horngren, Sunden, Schatzberg, & Burgstahler, 2012). From the perspective of cost behavior, there are three type of costs: fixed, variable, and mixed. Fixed are those costs that do not change due to the change of level of activity. However, fixed cost, if expressed per unit basis, varies inversely due to the change of level of activity (Caplan). Some of the examples of fixed costs are salaries, rent, and property taxes. Variable are those costs that change due to the change of level of activity. It is constant per unit. In linear equation, variable costs vary linearly with the change of level of activity. Variable costs, by definition, are considered as cost drivers (Horngren, Sunden, Schatzberg, & Burgstahler, 2012). Cost drivers also demonstrate cause and effect relationship between the level of an activity and costs related to that activity (â€Å"Types of Cost Behavior†, n.d.). Some of the examples of variable costs are direct material, direct labor, and sales commission. Mixed are those costs that have both fixed and varia ble components. The discussion above can be expressed as Total cost = Total fixed cost + Total variable cost. From this equation, we can