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In: Operations Management

You are the logistics manager for a large retail store chain. The Christmas decorations that will...

You are the logistics manager for a large retail store chain. The Christmas decorations that will go on sale next week are stuck in the port of Los Angeles due to a strike by longshoremen. What can you do to save Christmas for the year and what should you do to protect yourself next year?

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Expert Solution

  • You are the logistics manager for a large retail store chain. The Christmas decorations that will go on sale next week are stuck in the port of Los Angeles due to a strike by longshoremen. What can you do to save Christmas for the year and what should you do to protect yourself next year?

This is really a difficult situation for me as a logistics manager,because it will directly effect my retailing business ,as it is a large retail store chain),a huge cost is associated with the production of Christmas decorations,there will be a huge loss.so ,I have to take decision very wisely.As ,there is not much time available,because decorations are going to sale next week.According to me,we should think about different medium of transportation for the christmas decoration.Due to lack of time,it is difficult to manage other ways of transportation but it can be done by investing more money .Though ,this certain decision may increase the total cost,but in this way we can manage huge loss which will occur if we are unable to sell this.Another thing which can be done is,we can sell it locally ,though the profit will be less.

This situation may also arise in the next year,to protect myself & to avoid this situation,from this year ,I will arrange other different ways for transportation of christmas decorations & if I found that the cost of transportation on other medium is too high,then I will take initiative of selling Christmas decorations early.so,even if there is strike by longshoreman ,there will be enough time & when they will withdraw strike ,we can proceed.


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