Supply Chain Management and Logistics

4-4. Describe the Hierarchical and Matrix Organizational Design. The hierarchical organizational theory has its roots in the command and control of the military institution. In such a structure, decision making and communication follow a top-down pattern. Employees are expected to respond to their supervisors. In a matrix design, employees have cross-functional responsibilities. Therefore, employees report to different supervisors in different departments such as logistics, marketing, and production (Murphy & Knemeyer, 2014). 4-10. Discuss The Reasons Why Logisticians Might Be Concerned With Theft.

Theft is a global issue affecting not only logisticians but also business owners and consumers alike. Nowadays, the sourcing of raw materials and manufacturing of goods happens in every corner of the globe just as the warehousing, shipping, and consumption of the finished goods. However, cargo theft can occur at any given point in between hence compromising product availability and integrity.

Although their insurance provider may reimburse a company for the market value of the goods stolen, the insurance will not cover the costs and time related to theft (Murphy & Knemeyer, 2014). Secondly, logisticians are concerned with theft because it interferes with the planned flow of goods and could trigger stock-outs in the distribution channel. In the worst case scenario, theft can also affect the facility location decision since most companies tend to avoid locating their facilities in places with high theft rates (Murphy & Knemeyer, 2014).

Moreover, the stolen goods are likely to emerge in the market at lower prices thus competing with the company’s products, which have passed through the proper distribution channels. 10-7. How Does Multiclient Warehousing Mix Attributes of Public and Contract Warehousing? Many companies are adopting multi-client or commonly known as shared warehousing to enjoy the various advantages of public and contract warehousing. Multiclient warehousing mixes attributes of public and contract warehousing such as flexibility, efficiency, and reduced costs.

One greatest attribute of multi-client warehousing is that it saves costs (Bjerreskov et al. 2013). Sharing warehousing space with other companies is a cost-effective and flexible way of storage. It means that operational and labor costs are spread out among all the other businesses leading to significant savings. A company will only pay for space it occupies meaning that there will be no huge spaces standing empty in the warehouse when a company does not need the space.

Multi-client warehousing gives businesses flexible and shorter contracts unlike those of a contract warehousing. Therefore, it is useful for start-up businesses, companies that deal with seasonal goods, and those with a small customer base since such companies tend to be uncertain about the future of their warehousing needs. Multi-client warehouse facilities are controlled by logistic experts who use analytic tools to maintain a tight supervision over the inventory (Murphy & Knemeyer, 2014). In the end, it reduces costs and maximizes space management; the benefits finally trickle down to the consumer. 10-9.

Examples of Trade-Offs Involving Space, Labor, and Mechanization in Warehousing Design Regarding warehousing design, various trade-off involving space, labor, and mechanization exist. Enough space may not necessarily be advantageous since it increases the distance that machines or employees have to travel in the retrieving and storing of goods (Bjerreskov et al. 2013). Conversely, small spaces lead to a cramped environment in the warehouse which eventually causes inefficiencies. For instance, inadequate aisle width can lead to movement bottlenecks and forklift puncture which can cause product damage. 10-15. How Can.