Logistics management at Ameriwidget
Logistics management at Ameriwidget refers to the transportation of raw materials and final products through control and implementation of life cycle manufacturing. At the Ameriwidget, logistics management refers to the production of three different types of bicycles and ensuring that the products meet the final consumer at recommended quality and pricing for maximum utility. Supply chain management factor the flow of goods in manufacturing life cycles to meet consumer demands in terms of tastes and preferences, including storage and transportation to consumers. Supply chain management priorities acquisition of raw materials in the production of Mountain Bike, Beach Cruiser, and Fixies, and the process of value addition while creating utility for the final consumers.
Key differences between the two are that Logistics management focuses on transportation and coordination of goods and services in the production life cycle stages. In contrast, supply chain management prioritizes the movement of finished goods to the final consumers (Wolf, 2011, pp.225). As such, supply chain management at Ameriwidget is shipping its products directly to consumers, while Logistics management includes the acquisition of raw materials from suppliers into the company for production.
Logistics and supply chain management drive business decisions through allocating funds for the acquisition of raw materials and predicting the size of demand in terms of managing supplies and inventories. Logistics and supply chain management determines business decisions by allocating and managing employees with different functions in the production process and costs associated with the transportation of bicycles to the final consumers.
The goals of logistics and supply chain management are facilitating the production capacity of 16 machine hours per day and continuous manufacturing for five days a week (de Lourdes, Naim, and Potter, 2012, pp.28). Objectives of logistics management at Ameriwidget is to source available war materials and labour in the production of one bicycle every three hours in order to sustain production growth of 7% each month. Supply chain management objectives include allocating two machines to each production line, thereby meeting market demand for the three classes of bicycles, Mountain Bike, Beach Cruiser, and Fixies.
Qualitative and quantitative analyses are used in logistics planning to determine amounts of capital, human resources and structural integrity of the production lines to offer sufficient supply and quality products. The qualitative approach in planning and Logistics management includes supervision of employees based on 16 machine hour’s schedules daily and estimating level of demand based on daily consumer traffic (Mathiyazhagan, Govindan, NoorulHaq, and Geng, 2013, pp.287). Quantitative analyses used in logistics planning manifests through calculations of daily production rates and estimating costs and fixed overheads incurred in the manufacturing process. As such quantitative analyses in logistics and supply chain management rely on sales data, consumer demand information and production potential of one bike every three hours in more than six separate processes at Ameriwidget.
Qualitative analysis in logistics and supply chain management refers to decision making based on production observations, such as rating the productivity of employees based on their human capital skills. For instance, a pool of expert engineers at Ameriwidget would be able to produce one bicycle every three hours, based on qualitative observations of expertise and production techniques (Dong, Zhang, and Nagurney, 2004, pp.197). Quantitative analyses in logistics and supply chain management are by factoring production numbers of each month and predicting future manufacturing capacity based on a 7% growth rate.
Insights from these analyses leveraged in making business decisions at Ameriwidget determine employees to allocate roles and responsibilities based on observed productivity and reflecting of consumer tastes and preferences in terms of good quality bicycles. Insights from both qualitative and quantitative analyses at Ameriwidget include practices such as just-in-time inventory on the production line to save on financial resources and space requires for different stages in product life cycles.
The capacity of Ameriwidget’s three production lines is utilizing six different fabrication machines working at 16 machine hours per day results to a combined capacity of 32 bicycles daily and 160 in a week of five days of production capacity. A 7% growth of production capacity each month predicts 803 Fixie, 883 Mountain Bikes, and 936 Beach Cruisers for the upcoming month (How to Figure Out Percentages, 2020, n.p). The current production capacity for each manufacturing line is producing an average of 5 bicycles are a rate of three every hour. For the combined three production lines with two machines each, Ameriwidget could provide 32 bicycles daily. The monthly utilization rate for each production line is 640 machine working hours and two machines, with a potential of 214 bicycles. A combined monthly utilization rate in all production line is 640 bicycles.
Ameriwidget ought to use quantitative data of the three production lines to estimate daily and monthly demand hence producing the appropriate amount of bicycles to avoid costs associated with variations on consumer demand. Ameriwidget ought to use both qualitative and quantitative data on logistics management, leading to better handling of raw materials from suppliers and anticipating monthly demand to arrange for available inventory capacity. Ameriwidget could also employ qualitative and quantitative approaches in supply chain management in the process of storing produced bicycles and planning shipment schedules while avoiding to warehouse utilization and capacity.