Warehouse

David walks into the Men’s Warehouse store. He is getting married. No big fan fare here; no entourage to assist him as his fiance had experienced. David explains his purpose for shopping to Joe, the store sales rep. Joe begin to ask questions as he pull a few looks together that he believes David would like. Joe and David talk and laugh as they find the perfect look David wanted for his big day; Joe was proud – another customer satisfied. David walked out about an hour later knowing he would kook good for his wedding.

He felt good George Simmer is known for his classic line, Your goanna like the way you look, I guarantee it”. This is the Men’s Warehouse creed. Their emphasis on quality clothes and customer service in their stores has provided them a steady stream of success. However, they don’t measure their success by earning growth, geographic expansion or consistent return for investors, although they could have. They measure their success in levels of excellence In customer service, employee enthusiasm and customer loyalty In Dalton to the other uncial measures that are required by successful businesses (Denominator, 2006).

The backbone of the Men’s Warehouse organizational and financial success falls on their desire to uphold a culture that is based on customer loyalty and employee satisfaction. The purpose of this paper is to identify and discuss the cultural metaphor that the Men’s Warehouse has embraced. An organization’s culture Like any other culture can be defined by the pattern of development reflected in an organizations system of knowledge, Ideology, values. Laws and day-to-day rituals (Morgan, 2006). However it is more than Just a list of rules required as well. It’s a symbolic significance commonality that is shared amongst a group.

Culture is not something that can be measured but it is a formed of lived experience created by all within it. Creating a positive organization culture takes work from the top down as Men’s Warehouse has successfully demonstrated. Organizations such as the Men’s Warehouse benefit from operating from a Cultural Metaphor for many reasons. The cultural metaphor directs attention to the symbolic significance of almost every aspect of organizational life (Morgan, 2006). The activities have more meaning for the employees. For example, suiting someone for their wedding is not a normal shopping trip.

It is exciting and stressful. Customers will want to get advice from a tuxedo expert who can help them look their absolute best. Also, if fashion is your passion as an employee you are excited to assist In such a wonderful occasion and Knowingly accept ten responsibility Tort ten customers experience as well. It also holds individuals accountable because it makes them own their impact on the way things are and shows that it is their responsibility to change when appropriate (Morgan, 2006). This is demonstrated at the Men’s Warehouse from their top down approach to satisfying customers.

Simmer stated in his company overview that “we are not content to merely satisfy them. We win them over completely. This is not so much the results of rigorous training as it is the result of the unique Mess Warehouse culture that runs from the top down through all our operation”. (Denominator, 2006). Having the authority to do what is necessary to make sure a customer leaves happy allows employees to feel empowered. It is not mistake that in 2006, Men’s Warehouse was ranked in Fortune’s Magazine list as one of the “100 Best Companies to Work For” (Denominator, 2006).

This was based on the policies and culture of the company and satisfaction and opinions of the employees. The Men’s Warehouse prides itself on its culture of collegiality, and repeatable consistent customer service, and knows that one will create the other; both require employees to be authentic and pleasant. Men’s Warehouse believes that when a workforce is treated with respect and encouragement, there’s no limit to where it can take the company (Denominator, 2006). Happy employees’ are more authentic and allows for customer to have an experience that they can feel.

Customers who experience the Men’s Warehouse culture of excellent customer service, empowered happy employees that creates an environment that is service oriented and authentic which fosters repeatable business. Are always going to come back.. In turn, great service almost always fosters repeatable business. This type of interaction creates a cultural enactment that allows for a positive shared reality for both, employees and customers. The Men’s Warehouse embracement of the cultural metaphor is a great example of how culture can create loyalty within organizations. The backbone of the Men’s

Why was Dakota’s existing pricing system inadequate for its current operating environment? – profits only when clients placed large orders for cartons – real drop of profit if many clients place small orders – wrong cost determination for individual customers wrong cost determination for new services provided by DOP (to small charges for the “desktop” delivery, then the actual cost of it) Develop an activity-base cost system for Dakota Office Products based on Year 200 data. Calculate the activity cost-driver rate for each DOP activity in 2000.

Activity cost-driver rates: Activity One: process cartons in and out of the facility Rate=(90% of Warehouse Personnel Expense + Cost o Items Purchased)/cartons processed Rate=(90%*2,400,000+35,000,000)/80,000=464. 5 $/per carton Activity Two: the new desktop delivery service Rate=(10% of Warehouse Personnel Expense + Delivery Truck Expenses)/desktop deliveries Rate=(10%2,400,000+200,000)/2000=220 $/per carton Activity Three: order handling Rate=( Warehouse Expenses + Freight)/ number of orders Rate=(2,000,000+450,000)/(16,000+8,000)=102. 08 $/per order

Activity Four: data entry Rate=Order entry expenses/Order lines Rate=800,000/150,000=5. 3 orders/per line 3. Using your answer to question 2, calculate the profitability of Customer A and Customer B. Activity One: process cartons in and out of the facility –> Number of cartons ordered Activity Two: the new desktop delivery service –> Number of desktop deliveries Activity Three: order handling –> Number of orders (manual + EDI) Activity Four: data entry –> Number of line items Manufacturing Overhead cost-driver rates Customer A Customer B Customer A…

Answer 1

Rollerblade, the popular skate manufacturer based in Minnetonka, Minnesota. Rollerblade has been one of the leading firms in the fast growing high performance roller skate marketplace. Rollerblade was in a bind. The product literally could not be shipped out the door. The managers found that workers were not able to ship products because, as a result of poor storage structures, they could not find the products. Once they were found, overcrowded aisles, in addition to other space constraints, still prevented efficient shipping because the workers could barely manage to get the products out the door. We were out of control because we didn’t know how to use space and didn’t have enough of it,” said Ian Ellis, director for facilities and safety. “Basically, there was no more useable space left in the warehouse, a severe backlog of customer orders, and picking errors were clearly in the unacceptable range,” added Ram Krishnan, Principal of NRM Systems, based in St. Paul, Minnesota. With retailers as their primary customers, the customer competitive imperatives that are being affected by Rollerblade’s inventory problems are mainly of services i. . delay in deliveries, as stated above they were facing problems in making deliveries on time, no shipment was reaching on time. These delays will effect a lot on their customers as the retailers want to sell them and if the products were delayed the retailers will also have to suffer in loosing their customers which will in deed result in backing off from the Rollerblade’s only. Rollerblades were lacking behind in technology so as to meet their customer demands they need to improve their technology.

Answer 2

JIT, or just in time, inventory is a inventory management strategy that is aimed at monitoring the inventory process in such a manner as to minimize the costs associated with inventory control and maintenance. To a great degree, a just-in-time inventory process relies on the efficient monitoring of the usage of materials in the production of goods and ordering replacement goods that arrive shortly before they are needed. This simple strategy helps to prevent incurring the costs associated with carrying large inventories of raw materials at any given point in time.

For a product like Roller skates, a just in time inventory system might not be that useful as the problem with roller skates isn’t associated with production means whereas it is with the time of delivery. The problem arises after the product is manufactured and is dispatched for the delivery. The main problem with them was for the storage and then reallocating it as there was no systematic way of storage and finding it and sending it for the delivery on time. To solve this problem technology was required rather than just in time inventory system.

Real-time data Is often used for navigation or tracking. Continental use real-time data also for flight statistics (where the most valuable customers are while In flight, which ones are affected by delays and cancellations), to support Lorene security efforts, crew scheduling, crew performance, fraud detection and so on. The goal with the real-time warehousing was therefore to solve all those problems and get happy and loyal customers and employees. Some of the goals are listed below: Give employees fast information about the business and customers Flight on time

Take all of the baggage to final destination Easy booking, no overbooking – Increase services What have been shown is that the real-time Blob hasn’t Just improved and completed all of the goals, Continental has even started to use the system in much broader perspective. Make a list of most valuable customers, get knowledge about their trips, what they prefer, if they got good service and if something happening with them in the real-time and in that case give them right and direct service without them to need to ask for it. Customer facing’, near and personal contact with customers example: personal letter and so on) Improve of security because of comparing data in real-time with help of the system, helped FBI with searching after possible terrorists. It also helps to track people who try to track the system. Be almost always on time because of special booking processes, use all capacity of the plains, be always updating about price changes and act from there. Continental has invested approximately $30 million Into real-time warehousing over the last six years.

Of this amount, $20 million was for hardware and software expenses, and $10 million for personnel costs. Although this Investment Is significant, the quantifiable benefits from real-time warehousing are magnitudes larger. Specifically, over the last six years, Continental has realized over $500 million In Increased revenues and cost savings, resulting In a ROI of over 1,000 percent. The data warehousing group made some Important Improvements.

They developed a warehouse architecture that could grow and scalar to meet these real-time and operational need, developed prototypes to show potential end users, to get them excited about data warehousing and to give them ideas about new applications that here was business benefits for each application. They also made that data warehouse operates consistent with organizational culture. The warehouse proved employees with different information so that they can do they Job better and faster. All that changes lead that new project was successful.

Elements of the data warehousing environment at Continental which are necessary to support and extensive end-user Blob application development are: Data exist in the data warehouse from sources that are trusted by end users Help from data warehousing staff is readily available and friendly Metadata is kept current and is easily accessible by end users via the web Users have access to and are trained in tools to access and manipulate data Graphics are used, when appropriate, for data display, making it easier for users to understand and interpret the complicated data being presented Special issues about data warehouse management: Date and time management is amplified because of the finer granularity of data Customized views significantly improve query performance and reduce the load on the data warehouse With the extensive number of on-line, real-time users, views also revived an extra level of security against access to unauthorized data Data loads come in via many different routes and methods, so generalize components to handle data loading are used to save the effort of starting from scratch to develop each new loading process The large volume of constant data loading means that it is not humanly possible to watchful TTL processes, so automated watchdog applications are used to alert data warehouse staff via pagers when their attention is needed for some anomaly Data for loading are put into standardized queues, from which pre- Ritter load utilities pull data for loading into the data warehouse, no matter what the source of the data are There are data loads, tactical queries and strategic queries, each with different patterns of data warehouse use, specific priorities are given to the different types of loads against the warehouse. Priorities also change by type of day. Higher priority is given to queries that require the fewest data warehouse processing resources. I learned ten specific lessons are outlines in the Lessons Learned section. These lessons can be applied to the development of real-time data warehousing in any organization. Blab Britain

The Market Jacobs Industries’ only product is an industrial chemical that can be mixed with air to form a foam that is:

• Lightweight;
• Stable over a very wide range of temperatures;
• A very efficient thermal insulator;
• A very efficient acoustic insulator.

Jacobs sells its chemical to manufacturers of air conditioner retrofit kits. The manufacturers are all located in the region of Calopeia. They purchase the foam chemical as a substitute for competitors’ products. If Jacobs cannot ship an order within 24 hours of receiving the order from the customer, the customer makes its purchase from a competitor without any loss of future demand.

The chemical is shipped in small plastic drums at a price of $1450 a piece. Demand for the chemical is highly seasonal but otherwise very stable. There are no long-run market trends, either upward or downward. The size of orders is very random, with an average size of 7 or 8 drums. Orders arrive randomly throughout each 24-hour day. It is now day 730, two years after Jacobs began producing and marketing the chemical. A new foam technology is in development at Jacobs that will render all production capacity and inventory of the current foam obsolete and worthless on day 1460.

All customers are aware of the pending new technology and as a result, demand will decrease to zero on day 1460. Operations and Finance Jacobs’ distribution network consists of a single factory and a single warehouse, both in Calopeia. The warehouse only supplies air conditioner retrofit kit manufacturers, who are all in Calopeia. Jacobs produces its chemical in batches, loads the chemical into small plastic drums, and then transports the drums from the factory to the warehouse by truck. The warehouse sends drums to customers as orders are received.

The cost of fulfilling an order, including the cost of mailing the drum to the customer, is $150 per drum. The current capacity of the factory is 20 drums per day. More factory capacity can be purchased at a cost of $50,000 per drum per day. For example, expanding the capacity by 10 drums per day for a total of 30 drums per day would be (10)$50,000 = $500,000. Capacity costs are incurred as soon as the capacity expansion begins. It takes 90 days to complete a capacity expansion. Capacity cannot be retired. Production in factories is carried out in batches, where each batch is an integer number of drums set by you.

The cost to produce one batch equals $1500 plus the number of drums in the batch times $1000. For example, the cost to produce a batch of 10 drums is $1500 + (10)$1000 = $11,500. The batch of finished drums is shipped from the factory to the warehouse as soon as production of the batch is completed. The drums can be shipped either by truck or one at a time by mail. One truck can carry 200 drums. One truck making a trip from the factory to the warehouse costs $15,000, regardless of how full the truck is. It costs $150 to mail one drum from the factory to the warehouse.

Transportation times from the factory to the warehouse are 7 days for the truck or 1 day for mail. There is no practical limit to the number of drums a warehouse can hold. Both the costs of producing the batch and then shipping it to the warehouse are incurred as soon as production of the batch starts. If there is insufficent cash to pay for the production and shipping of the batch, the factory will remain idle. Production of a batch is triggered when the finished goods inventory (both en route to the warehouse and in the warehouse) fall below the order point, which is set by you.

Jacobs pays insurance and other out-of-pocket holding costs on chemicals once production is complete. These holding costs for one drum for one year equal $100, whether the drum is en route to a warehouse or the drum is physically in the warehouse. There are no such holding costs for work-in-process inventory in the factory. Jacobs earns 10% per year on its cash, compounded daily. Assignment Your team has been hired to manage the supply chain for the Jacobs Industries. You can make the following changes to the supply chain: Capacity additions to the factory. The finished goods inventory threshold that triggers production of a new batch in the factory. The factory’s production batch size. Whether batches are transported to the warehouse by mail or by truck. Your objective is to maximize the cash generated by the foam technology over the remaining two years of its lifetime. On day 1460 the game will end and all inventory and capacity will be obsolete. The simulation will run continually at the rate of 104 simulated days per real day, or 1 simulated day about every 14 minutes.

You will have control of the game from day 730 to day 1460, or 730 days total. The game will conclude 7 days and about half an hour after it started. During that time you can access your supply chain any time of the day or night. The winning team is the one with the highest cash position on day 1460. After the game is over, your team should turn in a 4-page memo describing the actions you took and in retrospect, whether there were other choices that would have allowed your team to do even better.

You will graded on the use of conceptual tools from class that you use to justify your conclusions. Selling price = $1450 Demand order size = 7 or 8 Obsolete date = 1460 day Set up Cost = $150 Capacity = 20 per day Capacity expansion = $50,000 to increase add 10 drum per day , but 90 days to complete capacity Cost of production = $1500+(units in a batch)*$1000 Holding cost =$100 per drum for one year Averagemin Max Day 123269 Day 26622133 Day 344397 Day 413163 Day 5425106 Day 66422108 Day 722185 -Most efficient if we set the batch size to 200 when only using truck delivery – –

Lecturer’s Comment: 3/3 4 Overall own paragraph structure and logical flow (not cut and paste) 5 Overall grammar and sentence structures 6/6 Lecturers overall comment: 15/15 / 15 All material contained within the thesis, including without limitation text, logos, icons, photographs and all other artwork, is copyright material of Aviation Management College unless otherwise stated. Use may be made of any material contained within the thesis for non-commercial purposes from the copyright holder.

Commercial use of material may only be made with the express, prior, written permission of Aviation Management College. Copyright @ Aviation Management College Abstract of thesis presented to the Panel of Aviation Management College In lifetime of the requirement for the Diploma in Flight Operation Management Abstract Aviation Management College Diploma in Flight Operation Management The movement of materials and goods between point of origin and point of use involves storage, transportation, and handling. This is where logistics and warehouse management plays a critical role.

The crux Of logistics and warehousing is getting the right goods to the right place at the right time. From production to distribution, manufacturers often have a plant with raw materials on hand and a warehouse nearby where additional materials can e kept. Some manufacturers have central warehouses that feed smaller local warehouses to optimize distribution routes in major markets. Inaccurate information regarding quantities, storage locations, pricing and identification remain the biggest problem in logistics and warehouse management.

These inaccuracies may arise from order adjustments, human handling, long processing procedures, miscalculations, lack of automation, or poor management systems. In addition to these problems, businesses have to be concerned with the flow of products and information both within the equines and in the wider supply chain. In order to make products available for end consumers, businesses must manage their logistics and warehousing in terms of product movement and demand management. They need to know what is selling in the stores in order to both anticipate and respond to changes in demand.

Acknowledgements Salaam Shatter and Salaam 1 Malaysia, Compliments to all and sundry, I am very delighted to utter that I have successfully accomplished my assignment with no uncertainties and postponement. During implementing my task, faced some problems but Andre to explain it everything appropriately and intelligently. First of all, I would like to address my big thanks to my lecturer, Madam Maria for choosing me this theme. Without her guidance, might fail to produce my assignment on time. She supported me from the very beginning to generate a good and best result.

In addition, would like to express a million thanks to the Director Of Aviation Management College, Captain ABA. Amman Manson for giving me this golden prospect to produce my very own assignment based on my critical thinking skills and knowledge that have gained throughout my years here in Aviation Management College. Last but not least, thank you to all my fellow friends that bond around with me throughout the whole completion of my project paper 1. They guided me by giving, advising, sharing and also exchanging information and thoughts to produce the best assignment.

DCH logistics planning for La Cafetiere

What are the advantages of having a bonded Warehouse and how can it help in doing international business?

A Bonded Warehousing can be defined as storage, manipulation, or further manufacturing of dutiable goods in a building or other secured area without the payment of duty on it. Advantage: Goods can stay in a bonded warehouse for an unlimited period of time, and no import duties and VAT will have to be paid until the moment they are actually imported into free circulation in the EU, e. g. o be transported to a customer. – You get the possible suspension of certain trade policy measure (license, ID, … ) – You get a significant cash advantage, because the fees and charges are payable only when goods are released for consumption, – Your competitiveness is increased in the case of re-export to third countries, since tariffs have not affected the cost.

Customs duties and VAT at import are only paid in the country of destination, and double payment is avoided -Goods kept in bonded warehouse are used as collateral security for bank loan. Goods kept in bonded warehouse are safe and are free from the fear of being stolen or damaged. All those advantages are useful to do international business What are the common logistics issues faced by multinational companies? Common logistic issues that multinational companies often have to cope with :

• Late delivery
• Bad or poor infrastructure in some countries: to receive the goods, road, hardboard…
• Environmental/political issues in the host country, Regional trade agreements
• Legal : trade regulation & standars Trade protection mechanisms, Tariffs , Quotas, Voluntary export restriction, Local content requirements, Health/environmental regulations, Government procurement policies
• Customs procedures and regulations as well as cross-border points infrastructure and operations
• Quality management is often done in the origin country which lead to high transport cost
• Cultural difference
• Lack of business network when developing on a new market
• Currency risks What benefits can La Cafetiere get from DCH Logistics?

DCH know how to deal with Chinese market, have experience with international trade; lot of modern warehouses and infrastructures, distribution center and bonded warehouses.. Offering also packaging services In Xinhui LC together with an array of follow up arrangements, including quality control, warehousing, inventory, shipment transportation and sales responses. Kuk was trying to come up with an attractive solution for La Cafetipre’s late delivery problems. In addition he wanted to explain the benefits of a solution involving DCH Logistics.

La Cafetiere can get benefits from DCH Logistics because one the one hand the Chinese market is growing very quickly and on the other hand, this market correspond perfectly to the strategy of La Cafetiere who wants to propose new products, adapted to this new market. Moreover, nowadays, China is a cross trade place where all countries come in order to do business. It’s today a central point for the manufacturing and the trading thanks to the work and the financial power of this country.

Basically, what a 3PL can bring to a company is the opportunity to focus on their core competency, in oder to achieve better quality, time management, and reduce the Total cost of ownership of their product. Here DCH logistics offer to la cafetiere to take care of the implementation of facilities on the Asian market in order to reduce their delivery time, especially when it comes to reverse logistics since quality management is operated in UK. Then DCH also offer La cafetiere a storage solution with the bonded warehousing hat will allow la cafetiere to saves up on inventory/ storage cost/ facilities implementation. Overall we can say that DCH is bringing La cafetiere opportunities to develop their market in Asia, allowing them to continue to produce high end goods, and to develop in a new area, without experiencing the “starting up” problem that are link to new implementation such as:

• Warehouse implementation
• Reverse logistics problem
• Tax on manufacture goods
• Business network Reputation in the new country

What should DCH Logistics do to develop its business further? DCH is a 3PL, which means that the network they build in a particular area is their main assets, aside from their experience and reputation, that is their “Trust insurance” for company that want to implement in the area “mastered” by the 3PL. Here DCH is really well integrated in the Asian business network, and have developed their infrastructure in strategic area.

They offer bonded warehousing for their client, business network and facilities:

• Distribution center
• Packaging services
• Stock management and facilities.

These are the 3 main option DCH are offering, if they want to develop their business, there is a lot of services they can bring up to their future client. Increase their range of solution.

1. Logistics of Transport: Invest and develop a software that is able to esign best route for transport in the area they are operating, which will be sold as a “Solution for transport” to the companies they are working with. In the same idea, they can decide to invest in Transport assets such as truck, or cross docking platform, which will allow them to offered the total transport logistics to a company that is willing to develop its business in the particular area, or just a part of the transport, since they will have fragmented the chain of transport into different level of solution.
2. Reverse logistics: Build an infrastructure that cope with international standard of quality, that offer the reverse logistics solution such as:

• Fluctuating product (return from clients, reparation)
• Eco-Treatment of unusable product (recycling)
• Partnership with other manufacturer to resell part of the product that are re-usable.
• Platform of quality management dedicated to the partner for installing their quality management service in order to reduce transport cost and delivery time. B. Implement their business in a different area.

Such as Europe, since they can work with la cafetiere they will be allowed to gather information about the way European are working and can bring up a case study of “Is working with European is worth it? ”  United State, since it’s the core business area of the world, and also because entrepreneurship is extremely developed in this particular area, starting up company often need to outsource a part of their logistics, since they need to focus on their core competency in order to gain market share.