course logistics Discuss FOUR 4 common challenges experience

course: logistics

Discuss FOUR (4) common challenges experienced by international logistics companies in cross border trucking

Briefly explain TWO (2) of these potential inventory related risks.

FOUR (4) factors that a firm should consider when deciding on whether to centralise or decentralise the location of its warehouse

Briefly describe the differences between uncertainty/safety stock and anticipatory stock

Solution

Q1) Below are the four common challenges experienced by international logistics companies in cross border trucking -

1. Licensing issues for trucks which are registered in one country and travel to other countries crossing borders.

2. Difference in regulations and thresholds for weight and dimensions of the truckloads.

3. Security issues concerning the destination countries

4. Traceability issues

Q2) Below are two of these potential inventory related risks -

1. Excess inventory resulting in increase of holding costs for meeting unpredictable demand.

2. Shortage of inventory resulting in stockout costs due to lost sales from not stocking inventory when demand arises.

Q3) Below are the four factors that a firm should consider when deciding on whether to centralise or decentralise the location of its warehouse -

1. Operating costs

2. Customer service

3. Material handling costs

4. Transportation costs

Q4) Safety stock is the buffer inventory needed to meet current demand if the existing inventory is not enough. Anticipatory stock is the additional inventory of materials, components or products kept to use if issues related to sudden spike in demand or erratic production results in requirement for these items.