Bill Gates of Microsoft

 

 

Chapter 1

Q / Bill Gates of Microsoft describes the 2000s as ‘business @ the speed of thought’. Discuss the importance of speed in the supply chain. How can speed be increased within the supply chain?

 

Q / Suggest logistics performance priorities for the following, explaining why you have come to your conclusions: a low fare airline such as Ryanair; b a fast food chain such as McDonald’s; c an overnight parcels service such as DHL.

 

Chapter 3

Q / Why are processes important in terms of managing logistics? Suggest how the processes of plan, source, make, deliver and return might differ in the case of the two factories Simple and Complex described in section 3.3.

 

Q / What are the advantages of cutting the ‘total cost cube’ in different ways? Summarize the different perspectives on logistics costs provided by fixed/variable, direct/indirect and engineered/discretionary costs, and by activity-based costing.

Chapter 4

Q / What are the benefits and limitations of international logistics? Illustrate your response by referring to sourcing of standard shirts and fashion blouses (shown in Table 1.1 in Chapter 1) from manufacturers in the Far East. Also, refer to the time v cost trade-off illustrated in Case study 4.4.

Table 1.1 in Chapter 1) from manufacturers in the Far East.
Table 1.1 Different product ranges have different logistics performance objectives
Classic shirts Fashion blouses
Product range Narrow: few colours, standard
sizes Wide: many colours, choice of
styles, designer labels
Design changes Occasional Frequent (at least every season)
Price Everyday low price Premium prices
Quality Consistency, conformance to
(basic) spec High grades of material, high
standards of workmanship
Sales volumes Consistent sales over time Sales peak for given fashion season
Order winners Price Time-to-market
Brand/label
Quality
Order qualifiers Quality
Availability Price
Availability
Logistics priorities Cost
Dependability
Quality Speed
Flexibility
Quality

 

 

 

Q / What is meant by the term ‘corporate social responsibility’ as it applies to international logistics? Illustrate your answer by referring to the Probo Koala disaster and the issue of child labour in the Sialkot soccer ball industry described in section 4.7.

 

Chapter 5

Q / Why is time important to competitive advantage? Identify and explain six key contributions that speed can make to logistics strategy.

 

Sample Solution

 

Utilization of Commodity

Bauxite is a sedimentary shake fundamentally made out of aluminum hydroxide minerals including gibbsite, boehmite, and diaspora, with blends of silica, iron oxide, titania, aluminosilicate, and different polluting influences (United States Geological Survey, n.d, a). Because of its high advancement of aluminum and low substance of pollutions, bauxite is the world’s essential wellspring of aluminum metal (Banks, 1979). Aluminum is one of the most generally utilized metals on the planet credited to its plenitude and particular physical and concoction properties. It has incredible electrical conductivity and flexibility. It is very light gauging just around 33% of steel or copper however with great consumption obstruction and solidness, making it a significant material in transportation and development ventures. It is additionally broadly utilized in bundling since it is vastly recyclable (Government of Canada, 2018). Bauxite is additionally the essential wellspring of gallium, a side-effect of mining and handling of aluminum minerals. Gallium’ wealth in the covering is under 19 ppm, and it has a higher focus in bauxite metals at around 50 ppm because of component substitutions (United States Geological Survey, n.d, b). Gallium is a generous material in microelectronic parts including light-radiating diodes (LEDs), laser diodes, photodetectors, and sun oriented cells, generally utilized in broadcast communications and aviation businesses.

Costs

Bauxite was right off the bat found by French geologist Pierre Berthier in the town Les Baux-de-Provence in 1821, and aluminum metal was initially disengaged in 1825 by Hans Christian Oersted (Bray, 2012). In the early years, the greater part of the aluminum was delivered tentatively, and the procedures were expensive and entangled, making its cost much higher than that of silver. After 1886 when the Hall-Heroult procedure was created and applied, aluminum generation wound up business and extended quickly, prompting diminishing aluminum cost. In the mid twentieth, the cost of aluminum was kept low to contend with copper in the electrical business. After World War II, aluminum was to a great extent utilized in development and transportation businesses, extending its generation, and aluminum cost demonstrated a diminishing pattern because of mechanical headway. As per Bray (2012), the aluminum cost arrived at the low-to mid-$0.20/pound extend during the 1960s. During the 1970s, ascribed to expanding requests and rising creation costs for essential aluminum, aluminum reusing industry grew quickly (Schlesinger, 2013). Aluminum entered the London Metal Exchange in 1978, and its value change was related with the trade paces of the cash. From late 1970s, costs of vitality including power age expanded because of the flood of vitality request in quickly developing nations, prompting slow increment in essential aluminum cost and the move of essential aluminum generation focuses from significant expenses nations, for example, United States, French, and Germany to moderately low costs nations, for example, Australia, Canada, and China.

As per Nappi (2013), the present cost of essential aluminum to a great extent relies upon varieties in vitality costs. For instance, China delivers low-evaluated aluminum since it has moderately modest and bottomless vitality sources and favorable strategies to bring down aluminum generation costs. Despite the fact that aluminum is a US-dollar based ware, its cost isn’t connected much with industry essentials as most generation and utilization happens outside the United States. Aluminum cost varied somewhere in the range of $0.500 and $1.000/pound from the 1990s as of recently (Bray, 2012). In view of information given by the London Metal Exchange, the aluminum cost vacillated around $1850/ton in February 2019.

Topographical Setting

Bauxite is a sort of terrigenous (got from land) material created from the extraordinary compound enduring of aluminum-rich rocks. Parent materials of bauxite are normally shakes containing a generally high substance of aluminous silicates, shifting from volcanic rocks including stone and basalt, changeable rocks including gneiss and migmatite to sedimentary rocks including shale and Al-rich limestone (ALS Global, 2017). Under tropical or subtropical atmospheres, Al-rich muds created from parent rocks are drained by fleeting water, during which procedure versatile components are expelled, leaving moderately stationary aluminum in situ with silicon and iron. Two kinds of bauxite stores, lateritic bauxite and karstic bauxite, are distinguished dependent on various parent materials and enduring procedures included. Lateritic bauxite is for the most part created from aluminous silicate shakes, for example, rock and gneiss through draining, basically made out of gibbsite or a blend of gibbsite and boehmite. Karstic or carbonate bauxite is delivered through the substance enduring of carbonate rocks which contain scattered Al-rich earth layers. Karstic bauxite structures when synthetically endured muds are washed and gathered into dissolved limestone holes, and it is normally made out of diaspore. Lateritic bauxite represents the greater part of the bauxite stores on the planet (ALS Global, 2017).

Bauxite stores are commonly very broad and conveyed generally around the globe. Some enormous monetary bauxite metals happen in Guinea, Australia, Brazil, Vietnam, Jamaica, Indonesia, China, India, Guyana, and Greece, which additionally add to the vast majority of the world’s bauxite mine generation. As indicated by Harder (1949), bauxite metal stores of financial criticalness regularly framed in Medial Cretaceous, Late Cretaceous, Early Eocene, Miocene, Pleistocene, and Recent age, incorporating Miocene bauxite in Jamaica, stores generally Tertiary and Pleistocene in Guyana, Brazil, Australia, and India, and Carboniferous and Permian bauxite in China. Bauxite stores normally speak to non-depositional interims, and structure inside levels created from dissolved unique bedrocks or silt. Bauxite creases have different thickness, running from a couple of meters to up to 25 meters, the thickest one for Sangaredi which is the biggest bauxite store on the planet (Abzalov and Bower, 2014). Bauxite layers can have different surfaces including free or solidified pisolites, cylindrical or monstrous bauxite with holes, and nodular bauxite. They likewise contain different alumina, silica, and iron substance. Various surfaces and synthetic organizations reflect diverse enduring conditions including changing guardian materials and atmospheres (temperature and precipitation) (Harder, 1949).

Events/Potential in Canada and Ontario

As per United States Geological Survey (Patterson, 1967), warm to hot and sticky atmospheres are basic for the arrangement of bauxite. Because of the absence of appropriate depositional conditions, Canada doesn’t have bauxite mineral stores. Consequently there is no bauxite mined in Canada (Natural Resources Canada, 2018).

Notwithstanding, Canada is one of the biggest aluminum creating nations on the planet, positioning after China and Russia. Quebec is the significant aluminum maker in Canada with one alumina processing plant and nine essential aluminum smelters, speaking to about 60% of North American Capacity. English Columbia likewise adds to aluminum creation with one essential aluminum smelter (Natural Resources Canada, 2018). In 2017, Canada delivered around 3,212 thousand tons of essential aluminum and sent out aluminum items esteemed at $12.7 billion.

References

Abzalov, M., and Bower, J. (2014). Topography of bauxite stores and their asset estimation rehearses. Applied Earth Science (Transactions of the Institution of Mining and Metallurgy, Section B), 123(2), 118-134.

ALS Global. (2017). Bauxite. Recovered from: https://www.alsglobal.com/ -/media/als/assets/administrations…/bauxite-specialized note.pdf

Banks, F. (1979). Bauxite and aluminum: A prologue to the financial aspects of nonfuel materials. Lexington, Mass.: Lexington Books.

Legislature of Canada. (2018). Regular Resources Canada: Aluminum certainties. Recovered from: https://www.nrcan.gc.ca/mining-materials/certainties/aluminum/20510

Harder, E. C. (1949). Stratigraphy and Origin of Bauxite Deposits. GSA Bulletin. 60 (5): 887–908. doi: https://doi.org/10.1130/0016-7606(1949)60[887:SAOOBD]2.0.CO;2

London Metal Exchange. (2018). LME Aluminum. Recovered from: https://www.lme.com/Metals/Non-ferrous/Aluminium#tabIndex=1

Nappi, C. (2013). The worldwide aluminum industry 40 years from 1972 [Report]. Universal Aluminum Institute. Recovered from: http://large.stanford.edu/courses/2016/ph240/mclaughlin1/docs/nappi.pdf

Regular Resources Canada. (2018). Aluminum Facts. Recovered from: https://www.nrcan.gc.ca/mining-materials/actualities/aluminum/20510

Patterson, S. H. (1967). Bauxite stores and potential aluminum assets of the world. U.S. Land Survey Bulletin 1228, 176 p.

Schlesinger, M. E. (2013). Aluminum Recycling (2 ed.). CRC Press. pp. 2–6. ISBN 978-1-4665-7025-2.

Bawl, E. L. (2012). Metal Prices in the United States Through 2010: Aluminum (Al) [Report]. US Geological Survey. Recovered from: https://pubs.usgs.gov/sir/2012/5188/sir2012-5188.pdf

US Geological Survey. (n.d, a). Bauxite and Alumina Statistics and Information. Recovered from: https://www.usgs.gov/focuses/nmic/bauxite-and-alumina-insights and-information?qt-science_support_page_related_con=0#qt-science_support_page_related_con

US Geological Survey. (n.d, b). Gallium – A Smart Metal. Recovered from: https://pubs.usgs.gov/fs/2013/3006/pdf/fs2013-3006.pdf

 

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