If we use our own transportation system what are the benefits and drawbacks.

  1. Being a Logistics Manager, you have been asked to give a suggestion whether to manage a stores in house or to outsource the entire stores (warehouse) operations. Suggest a best option with cost benefit details.
  1. You are working with a distributor of pharmaceutical products. One of your clients (manufacturer) has been dumping stock to your warehouse to show sales. Due to space constraint in the warehouse your company asks you to prepare a report of nonmoving items of last 6 months based on ABC analysis. The client has dumped 925 items. Average Stock value is Rs. 4 crores/month and sales value is Rs. 1 crore per month. Prepare a report based on ABC analysis and inform the total number of nonmoving items lying in the warehouse. Explain the complete process of the analysis to get the non-moving items.
  1. You are heading a Distribution company which distributes consumer items to the wholesalers. The orders are placed whole day by 80 wholesalers. The wholesalers are located in the vicinity of 60 – 80 kms from your warehouse. Orders placed by 3.00 p.m. should be delivered on the same day and the orders placed after 3.00 p.m. should be delivered by next day 12 noon. Apart from this there are urgent orders which should be delivered in 3 to 4 hours on the same day of orders. Your management wants you to suggest the following:
  1. If we use our own transportation system what are the benefits and drawbacks.
  1. If we outsource the transportation systems what are the benefits and drawbacks. What is your recommendation to the organization on this?
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