Describe advantages and disadvantages of holding inventory, Business Management

Describe advantages and disadvantages of holding inventory

You are the Logistics Manager for a Spanish retailer of sports clothing and equipment (shirts, shorts, swimwear, training shoes, and sports equipment) which has over 150 retail outlets across Spain.

In the past, your company has purchased its products from local suppliers.

To remain competitive the company has decided to purchase its products from 3 overseas manufacturers based in Brazil (swimwear), South Africa (sports equipment) and China (clothing). This will enable the company to purchase their products at a much lower price than from their local suppliers. However, there will be a requirement to carefully plan the logistics support required to ensure the products are shipped in an efficient manner to the Spanish port of Algeciras and then by road to the retail outlets. 

1 Inbound Logistics (30%)

What logistical issues would you have to consider before you could ensure the products could be successfully transported from the overseas suppliers to the port of Algeciras in southern Spain? Assume the goods are shipped in standard 20ft and 40ft containers.

2 Shipping Services (10%)

Select a major container port in Brazil, South Africa and China and produce a table showing:

(a)    Two shipping lines offering services from these ports to Algeciras.
(b)    Their transit times.
(c)    Their frequency of service.

3 Distribution Centre in Algeciras (20%)

The Company's local suppliers currently deliver directly to the retail outlets on a weekly basis. The suppliers use their own fleet of vehicles to make these deliveries. With the planned move to use overseas suppliers, Sol Sport is considering establishing a distribution centre in Algeciras with a view to holding 6 weeks inventory.

Describe what would be the advantages and disadvantages of holding this inventory.

Posted Date: 2/15/2013 2:00:49 AM | Location : United States







Related Discussions:- Describe advantages and disadvantages of holding inventory, Assignment Help, Ask Question on Describe advantages and disadvantages of holding inventory, Get Answer, Expert's Help, Describe advantages and disadvantages of holding inventory Discussions

Write discussion on Describe advantages and disadvantages of holding inventory
Your posts are moderated
Related Questions
What do you understand by “line balancing”? What happens if balance doesn’t exist?

QUESTION For the success in the implementation of any business information system, one has to become familiar with the enterprise and understand its objectives in order to prod

QUESTION You are required to advise the management of UTM Ltd about the different types of information systems that it might require at the various levels of the organisation.

Sid and Nancy both need to buy pens for school. The bookstore has only two types of pens: Basic blue pens (B), which cost $.60 each. Long-lasting green pens (G), which have

What are the features, advantages and disadvantages of sole proprietorship


The Code of ethics for Public Officers sets out the standards of correct conduct expected of Public Officers. It emphasizes the importance of a responsible, responsive and caring

Some people argue that the matrix structure should be adopted only as a last resort because the dual chains of command can create more problems than they solve. Do you agree or dis

The most significant emerging global economies, in terms of growing power and influence, are normally referred to BRIC economies

a) Illustrate that a range of methods and techniques have been applied in demonstration of Way the market forces shape organisational forces        b) Judge how the business and c