M4-A2 -OPERATIONS MANAGEMENT Essay Example | Topics and Well Written Essays - 250 words

M4-A2 -OPERATIONS MANAGEMENT - Essay Example Physical control and information generation enables the lenders to reduce the financial risks and uncertainties in the global supply chains. Risk mitigation ensures effective generation of capital. A report published by the Aberdeen Group in 2008, 58% of multinationals suffered financial losses in 2007 due to disruptions in the global supply paths. Supply chains disruption sat the global level were caused by mostly financial and political instabilities. There is also the risk associated with forecasting errors that result in overstocks or inventory shortfalls (Welborn & Kasten, 2007). Increased financial losses impact negatively on company’s operations. Companies usually scale down their production processes as a result of financial constraints. Decreased production leads to reduced supplies in the global market. The customers experience reduced sat6isfaction, if supply of products is limited. Forecasting errors leads to poor prediction of market requirements. This leads to low levels of customer satisfaction. The threats lead to low profits margins of companies. For instance, the financial threats leads to low sales levels hence reduced profits. Low profit margins lowers the operation levels of the company, hence low production of products to meet global market requirements. Inadequate commodities in the market, leads customers to purchase substitute products, or products of competitors. Forecasting errors leads to wastages of resources, especially during overproduction. This can drive companies to high loss levels (Manuj & Meotez, 2008). An effective selection criteria should adopted so as to assess a global supply chain partners on issues like quality, quality, geographical presence, and reliability. Certain logistic service providers should be outsourced. This ensures risk reduction and appropriate adoption of innovation; for instance, adopting information technology solutions (Welborn & Kasten, 2007). Global supply chains that

Fleet Assignment Essay Example | Topics and Well Written Essays - 250 words

Fleet Assignment - Essay Example Thus, the spilled passengers are 50 passengers, and they would wish to travel in flight 1 and 125 passengers who would want to travel in flight 2. Since the fare for A-B itinerary is much less than the two local itineraries, the profit maximization is to spill 50 passengers on the A-B itinerary (15000 dollars). From this, the remaining demand for flight 1 does not exceed the capacity (Holloway, pp.124-178). Because the local fare for flight 2 is much less than the fare for X-Z itinerary, 75 passengers are spilled from B-C itinerary (16875 dollars). Hence, the minimum spill cost for fleeting 1 15000+16875 = 31875. The spill cost for each transient is in Table 5. Thus, the fleeting contribution for fleeting 1 is 71250-(30000+31875) = $9375. Through analysis, the rest of the fleeting as shown in Table 5, that the optimal fleeting is fleeting 1. The spill minimizing strategy for this case in every flight is to drop passengers in view of increasing fare until passenger’s number accurately equals the assignment capacity in every flight. For instance, managers always spill passengers in order to keep the higher fares for connecting