Answer 1: Introduction

It is inevitable that the supply chain, logistics, and distribution network architecture of a
company will go out of sync with the company's customer base and market share during the
course of its operation's life.

An array of issues develop as a result, such as higher network costs, longer lead times for
maintenance, product damage or loss, and product liability claims, to name a few.

Products are easily accessible as a result of the high amount of inventory on hand.

It's likely that the design of your company's distribution network has become out of date,
resulting in employee dissatisfaction with their jobs. If you haven't examined your network in a
while, there's a good possibility that this is the situation for you.

Distribution networks, by virtue of the fact that they enable commodities to be transported from a
manufacturer or supplier to a final consumer, may be considered a network.

This network of storage facilities, warehouses, and transportation systems ensures that goods are
transported efficiently to their ultimate destination.

The design of a distribution network should take into consideration the needs of end customers,
the customer experience, product variety and availability, response time, and the returnability of
the product, among other factors.

Concepts & Application

Because of the manner in which businesses interact with their customers, distribution networks
have a substantial impact on both expenditures and customer service.

Because this approach does not take into consideration market conditions that may change over a
long period of time, which is the normal amount of time required for network design projects, it
has a fundamental limitation in that it cannot be used in real-time. Due to the fact that markets in
developing countries are more volatile than those in mature markets, it is much more difficult to
achieve success.

Using mathematical models, researchers from the Malaysia Institute for Supply Chain Innovation
have shown that ideal distribution networks may be formed by merging external components into
mathematical models (MISI).
The distribution network design papers provide specifics on the warehouse locations and product
allocations, among other things.

.. A chemical firm often employs large production facilities to produce its goods in order to cut
manufacturing costs. Orders may be delivered to consumers in a number of different locations.
The cost structure of the distribution network determines the ability to provide items to meet
customer demand while also sustaining service standards at all times.

It is possible to attain these aims in a number of ways. Inventory holding expenses for a
corporation might be decreased by risk-pooling it among a number of warehouses, for example.
Nevertheless, since it is more expensive and takes more time to set up, it is not a feasible option.
Alternatively, businesses may choose to stock their items in many warehouses, enabling them to
react to changes in the market more rapidly and efficiently. It will become more expensive to
keep more objects as a consequence of the requirement to do so, resulting in more money being
saved by the organisation.

However, based on a mathematical model, it is possible that this may not adequately reflect real-
world needs. The normal planning horizon for these design projects is three to five years,
although there are a range of external events that might have a considerable impact on the timing
of their completion.

How to Build the Most Effective Distribution Network

As organisations expand and attempt to reach a larger audience, distribution systems must evolve
to meet the demands of the changing marketplace. A long-term plan is required to ensure that
they are properly set up and maintained over the long run. To create the greatest distribution
network and supply chain, it is critical to understand and anticipate consumers' demands. If
profitability is to be maintained, costs and service levels must be tailored to satisfy the demands
of the whole customer base. The management and planning of the supply chain are required for
strategic planning to be successful.

When constructing distribution networks, a number of aspects are taken into consideration,
including service quality and cost. When establishing a supply chain or distribution strategy, it is
essential to take the geographic location of a consumer into consideration. As soon as they have
determined where their customers are located, they must create a distribution plan that is both
cost-effective and does not drastically affect the end product's price structure. Knowing where
the client is located is beneficial for logistical planning.
Another significant thing to consider is the volume and frequency of orders placed by a
customer. A company's requirement to know how often and how much a product is bought is
essential. Inventory delivery may be monitored more efficiently with its assistance.

When developing a distribution model, it is important to include transportation costs as well as

modalities of transit. The frequency and location of client orders have a significant impact on the
most cost-effective delivery option and its associated expenses.

Construction of a streamlined distribution network is impossible without enough storage space.

Demands from distributors must be satisfied, and customer satisfaction must be assured, by
choosing the most appropriate warehouse locations, sizes, accessibility, and operational
expenses.

Conclusion

A distribution network is a kind of organisation that allows the movement of commodities from a
manufacturer or supplier to a final consumer or customer base. The existence of this network
ensures that commodities are supported throughout their journey from storage facilities to
warehouses and transportation networks. In order to ensure that a product is distributed to its
targeted client base, either a retail network or direct sales are used to accomplish this. According
to a comparison of optimal designs, which explain which distribution centres should be operated
throughout each time period over the planning horizon, for the different scenarios, it was
discovered that one variable had the greatest impact on performance: oil prices, which were
significantly higher than expected. As far as I was concerned, it was the end of the storey. A
further in-depth research of the impact of oil prices was carried out in the following months.

For the chemical industry, it is vital to examine the long-term implications of the network
architecture it chooses to implement. The effectiveness of a distribution network depends on its
ability to accelerate the speed with which items reach the final client while also creating chances
for the company to expand geographically.

Answer 2: Introduction
A firm keeps safety stock to prevent running out of supplies or going "line down."
Safety stock management establishes the minimal amount of inventory to have on hand to defend
against unexpected demand (or sales) spikes or supply shortages. Instead than waiting until a
resource is desperately required. In many cases, both tactics are utilised together. Inexpensive or
hard-to-find commodities should be kept on hand.
Having enough material on hand to satisfy demand is as vital as not having extra safety stock.
Your organisation may benefit from modern technology, trustworthy operations, and inventory
management.
Or a manufacturing glitch
Concept and Application
Not having enough inventory to meet consumer demand is avoided by keeping a safety stock.
ASSURANCE STOCK MANAGEMENT serves solely The other aims are purely financial.
Accurate consumer demand estimates are necessary to avoid the danger of stockouts. When
demand is predictable, it's straightforward to forecast inventory needs between replenishment
cycles (builds).
Constant supply becomes difficult when demand fluctuates. Queue client orders and ship with a
lead time if holding expenses are too high. If holding fees are acceptable, a greater buffer may be
preferable.
Accept a compromise. As a consequence, little purchases may be required while bigger ones are
postponed. This technique may help most customers while keeping holding costs low since better
knowledgeable purchasers with safety stock plans typically make greater purchases.
Cost-Control
The holding cost is an idle inventory expense. Because idle inventory has little value, spending
money on it seldom generates a profit. Keeping safety stock levels low benefits the organisation.
Prioritize item cost while deciding on desired inventory levels.
Project End Date
Lead time is the time it takes from placing an order to getting the material. Some things take
longer than others. Products' lead times vary. If lead times and material demand are predictable,
you may lower target inventory. The volatility of lead times makes accurate planning difficult.
Extra safety stock helps accommodate for lead time fluctuations.
Supply Chain Simplicity
Electrical resistors, for example, are commonly accessible. Notifying manufacturers of
temporary modifications allows for some sourcing flexibility. In addition to saving time and
money, having a single source of supplies reduces waste. Increasing commodity safety stock
levels may simplify purchase and manufacturing.
Intermediate Product Costs ($)
A manufacturing process's economics are likely to vary. On the other hand, several stages have
steep entry fees that dramatically raise the expense of low-volume manufacturing. More volumes
may be run by increasing target minimums or target ranges.
Contrast a locally created additively manufactured gear with an injection-molded plastic widget.
As production volume increases, the manufacturing cost should decrease. Setup costs for
injection-molded widgets surpass overall costs at low volume. Higher lot sizes and target ranges
may be advantageous.
Good management
Simple recommendations might help you manage safety stock in Aligni.
Fix minimum and maximum goals.
It's tough to determine how much of an item to buy while considering the minimum. When
buying, buyers should have a definite ultimate aim in mind. Order volume, frequency, and cost
are balanced.
Analyze the aims Periodically
Sales and demand for a product fluctuate. Some items' lead times vary. It is critical to routinely
review item safety stock targets to avoid demand mismatches.
Aligni's safety stock history may be helpful here. The frequency of refill is monitored. This may
help you detect whether an item is being cycled too often.
When demand for an item ceases, the target range for that item may shift. The sleep button
temporarily hides an object from view without impacting the target range.
Why do we need safety stock even when we know the risks? To protect against two external
elements, demand uncertainty and lead time uncertainty, you must first implement a safety stock
plan.
Uncertainty of Demand
Every shop and manufacturer has year-round and seasonal bestsellers. Repurchase numbers are
easy to compute for items like razor blades. Depending on supply and demand, you may not need
much safety stock.
Desk fan demand, on the other hand, is harder to anticipate. But how can you prepare for an
exceptionally hot summer? You'll need more desk fans than razor blades to prepare for an
unpredictable occurrence.
unknown lead time
Lead time is vital for manufacturers and firms that assemble goods. It also specifies minimum
inventory and safety stock levels.
Components must arrive at the plant at least a few hours prior to their use on the manufacturing
line. Production lines may shut down due to supplier and customer supply delays.
This may alter your lead times. It may help you maintain production if supplies arrive sooner or
later than planned.

Conclusion
Out of stock on a hot item means lost sales to your competition. Being the lone vendor of a hot
item during the holidays or a trend might assist long-term conversions.
It's difficult to forecast how well an item will sell or when it won't be delivered on time. Your
warehouse has to be supplied and your customers delighted.
Accounting for unpredictability of consumers or suppliers. It may be useful to purchase time if
you need to acquire additional units due to supplier issues.
Answer 3a: Introduction
While a full manufacturing plan is being established, an aggregate plan ensures that production is
not halted. Depending on its complexity, the aggregate production planning approach takes three
to 18 months to execute. Instead of considering individual production runs or items, aggregate
planning considers the whole manufacturing activity of a facility (or, in the case of big
organisations, across numerous sites). Aggregate production planning helps organisations to
maximise resource allocation even when demand for certain commodities fluctuates greatly.
Aggregate planning is a characteristic of advanced planning and scheduling systems that
organisations using digital technology should consider while managing production processes.
Aggregate production planning may be done on paper, in a spreadsheet, or using dedicated
software. In order to develop a large-scale operation, more data must be examined than ever
before. APS solutions are increasingly being used by enterprises to meet their aggregate planning
needs.

Concept and Application

Factors Affecting Aggregate Planning

Aggregate planning is an operational activity that helps an organisation balance long-term

strategy planning with short-term production performance. Prior to starting the aggregate
planning process, consider the following:

It is vital to know the available production facilities and raw materials.

Medium term demand is expected to be high.

Aside from raw materials, labour, and inventories, manufacturing costs must be planned.

Organizational policies include labour management and quality management policies.

Good aggregate planning considers the following:

an estimate of total demand for the time under inquiry

Subcontracting, outsourcing, and other techniques of controlling capacity are explored.

The present workforce (number of workers, skill types, and inventory) is shown in the table
below.
Using aggregate planning, an organization's staff, inventory, and production rate may all be
planned to meet its strategic goals.

Regarding Aggregate Material Administration

There are three types of aggregate planning systems, each with its own benefits and drawbacks.
Here are the details.

Preparation (also known as "levelling up" strategy)

The level method's name implies that it maintains consistent production rates and labour levels
across time. This method requires a detailed forecast demand in order to raise or decrease
production in anticipation of lower or greater customer demand. A level plan helps you to keep
your people steady. Using a level of service approach always increases inventory and backlogs.

Method 2: Achieving Your Goals

The "chase" strategy aims to match client demand with corporate capacity. When reducing
inventory and backlogs, a technique is used. The economy suffers from decreasing productivity,
lesser quality, and a shrinking labour force.

Tactics combining both are conceivable.

This is a hybrid strategy since it combines a level approach with a chasing plan.

Conclusion

The process of establishing, maintaining, and frequently modifying an organization's overall

scope of operations. It often gives sales projections as well as inventory and production data.
Capacity is calculated initially, then costs are reduced by comparing them to capacity. Pre-
marketing to estimate manufacturing costs and other essential supplies might assist a firm lower
overall operating costs. Pre-marketing includes any marketing done in advance to identify
manufacturing costs and other suppliers.

Answer 3b: Introduction

Due to great demand for covid, Inc.'s goods, Bio-medical Secure's personal protection equipment
is severely out of supply. "Bio-Secure" is a medical PPE company that is severely out of stock
for their PPE kits and components. Consider the following instances from real-life:
The aggregate planning process generates and maintains a basic anticipated timeline for all
activities of an organisation, which is modified when new information becomes available. The
overall plan frequently includes sales projections, manufacturing goals, inventory targets, and
customer backlogs. This period was set to satisfy demand forecasts while keeping prices low.

Concept and Application:

When demand has to be increased to match capacity, the market has many options:
Product and service costs are defined as follows: 1. Price modifications should be made to
increase demand when demand is lower than peak demand. Seasonal pricing includes discounts
on movies and hotel rooms, as well as prices on goods that are in great demand at specific
periods of the year.
The second kind of action is promotion. Advertising, direct marketing, and other promotional
efforts may help alter demand.
Three, the ability to place a future order. Delivery delays shift demand for current orders to a
period when capacity is not fully used. In reality, this is just another way of "smoothing out"
demand. For example, service industries might minimise demand by taking reservations or
appointments in advance, preventing walk-in customers. Some call this a "partitioning"
necessity, which is right.
4. The development of fresh market demand. As a consequence, a new (but complementary)
demand for an existing product or service emerges. When clients are forced to wait at
restaurants, they are typically sent to the bar for free (but not complimentary). Other examples
include the incorporation of video arcades into movie theatres and the expansion of convenience
store services.
Following are some examples of ways to increase or decrease capacity to meet current demand:
1. Recruiting and terminating employees are critical activities. Companies may maintain a
healthy balance between capacity and demand by recruiting more people when required and
firing those who are no longer needed to meet demand.
Extending business hours. According to the Harvard Business Review, employers that force their
staff to work longer hours or on extra days might temporarily increase their capacity without
hiring new personnel.
Temporary or part-time work is another alternative. Temporary or casual labour have a
detrimental influence on the economy (workers who are considered permanent but only work
when needed, on an on-call basis, and typically without the benefits given to full-time workers).

Conclusion
Making predictions helps the organisation avoid having to adjust its manufacturing strategy last
minute. This saves the organisation money while simultaneously causing staff unrest and
uncertainty, which negatively impacts the company's overall performance. Using aggregate
planning approaches, it is possible to predict medium-term demand and capacity with fair
precision.
Resource management is the management of resources.
You are primarily concerned with the allocation of scarce resources in the short term. So you
limit the risk of overproduction, which wastes resources and costs while raising the possibility of
market saturation. Reduced output during periods of low demand saves labour and resources,
helping to stabilise the firm's finances.
It is feasible to cut costs.
Aggregate planning may help organisations achieve financial goals and increase profits. To meet
customer demand while minimising order processing time, the most efficient utilisation of
existing manufacturing capacity is required.
The problem must be well understood.
While aggregate planning forecasting may help many businesses, it is not a cure. To correctly
foresee the future, you need high-quality data (and people). Humans have well-documented
biases that lead them to misread economic data or use incorrect prediction models to create
economic projections. There will always be unknowns, such as material price rises, new
legislation, and fluctuating borrowing rates. Remember that if you do not adjust to changing
labour conditions, your staff may become dissatisfied with their jobs.