1 Demonstrate how procurement manufacturing and customer acc

1.      Demonstrate how procurement, manufacturing, and customer accommodation requirements drive the need for warehouses.

2. Define the components of an ideal logistics system design.

Solution

1.      Demonstrate how procurement, manufacturing, and customer accommodation requirements drive the need for warehouses.

The definition of procurement is the act or process of obtaining or buying goods or services, the process includes preparation and processing of a demand.

Manufacturing is the process of creating a product based on raw materials, the inputs pass through a transformation and become outputs (raw materials purchased through procurement)

Customer accommodation in a few words is satisfying what your customer wants, all of his demands should be meet.

A need of a warehouse is because when you buy raw materials for your production process you do not necessary use them right away, usually you buy a couple of month in advance to avoid any delay, therefore you need a place to store it, if you have a big manufacturing process then you will need a big amount of raw materials and should be close to your production plant, a warehouse is the ideal place for this.

Also, in order to meet your customer’s accommodations and to complete the production process on time you need a place for the supplies and also once the production is done you need a place to store it, you need a warehouse.

2. Define the components of an ideal logistics system design.

Logistics system components: