Question

Section 1 Short Answer Questions:

2. What is the relationship between logistics and Marketing?

3. What is the relationship between logistics and Production?

4. What is the difference between logistics network design and logistics process design? Provide an example

Answer 1

(1) Logistics and marketing are often considered to be as complementary business operations that enable a company to ensure that it can offer the right products to the right customers in the right place.

With good coordination between logisticks and marketing, comapnies can build the highest level of customer satisfaction which is the key goal for any company. A business with good logistics can keep track of product shipments and move products or information quickly to correct loaction. This have direct impacts on marketing thus marketing is always connected with logistics strategies.

(2) Production logistics aims to ensure that each machine and workstation recieve the right product in the right quantity and quality at the right time. It concerns with production, testing, transportation, storage and supply. The relationship between production and logistics provides the means to achieve customer response and capital efficiency. Also it helps to keep in check the proper quantity and quality of the products which is a must for a comapany's reputation.

(3) # Logistics Network planning and design involves building transport, inventory and location strategies around the customer service goals ensuring the total package achieves the best service at the lowest cost.

For example - Logistics network design is a vital strategic decision for Audi. It is very important to allocate the customer demand points to warehouses, aand allocate products from the warehuses to production plant.

# As the name suggest, a logistical process is involved with the processing of a product. A logistical process tries to find the best solution for manufacturing and distributing goods by considering how the market uses these products.

This helps the company to keep a check on the factors that are involved in production, i.e the factors that affect production quality and efficient transportation to the perticular destination. For example - Production of tyres by MRF for the automobile company Audi. Logistical processes are incolved to keep a check on the tyres and its production to ensure premium quality.

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