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Explain five ways in which proper management of the transport function may enhance efficiency in an organization. (10 marks)November 2022
Route optimization: Proper management of the transport function can enhance efficiency by optimizing routes to minimize travel time and costs. Vehicle and driver management: Proper management of vehicles and drivers can improve efficiency by ensuring that vehicles are properly maintained and that drRead more
- Route optimization: Proper management of the transport function can enhance efficiency by optimizing routes to minimize travel time and costs.
- Vehicle and driver management: Proper management of vehicles and drivers can improve efficiency by ensuring that vehicles are properly maintained and that drivers are properly trained and scheduled.
- Real-time tracking: Proper management of the transport function can enhance efficiency by implementing real-time tracking systems that allow for the monitoring of vehicle and driver performance.
- Communication: Proper management of the transport function can enhance efficiency by ensuring that there is clear and effective communication between drivers, dispatchers, and other stakeholders.
- Load planning: Proper management of the transport function can enhance efficiency by effectively planning the loading and unloading of vehicles to minimize waste and ensure maximum utilization of space.
- Flexibility: Proper management of the transport function can enhance efficiency by ensuring that there is flexibility in the transportation network to adapt to changes in demand and other factors.
- Compliance: Proper management of the transport function can enhance efficiency by ensuring compliance with regulations and laws related to transportation.
- Cost-effective: Proper management of the transport function can enhance efficiency by minimizing the costs associated with transportation, such as fuel and maintenance costs.
- Customer service: Proper management of the transport function can enhance efficiency by improving customer service by ensuring on-time delivery and providing accurate delivery information.
- Data analysis: Proper management of the transport function can enhance efficiency by analyzing data on transportation operations to identify inefficiencies and areas for improvement.
See lessExplain five factors that should be considered when selecting a stores layout to adopt for a warehouse.(10 marks)November 2022
Space utilization: The layout should maximize the use of available space and facilitate the efficient flow of goods and materials. Storage requirements: The layout should take into account the size, weight, and frequency of use of the items being stored. Accessibility: The layout should provide easyRead more
- Space utilization: The layout should maximize the use of available space and facilitate the efficient flow of goods and materials.
- Storage requirements: The layout should take into account the size, weight, and frequency of use of the items being stored.
- Accessibility: The layout should provide easy access to all stored items, and allow for efficient picking and packing operations.
- Safety and security: The layout should promote a safe working environment and prevent unauthorized access to stored items.
- Flexibility: The layout should be adaptable to changing storage requirements and allow for future expansion.
- Aisle width: The layout should consider the type of equipment and vehicles that will be used in the warehouse and ensure that there is enough room for them to move around safely.
- Lighting and ventilation: The layout should ensure that all areas of the warehouse have adequate lighting and ventilation.
- Inventory management: The layout should facilitate the efficient management of inventory and make it easy to track the movement of goods.
- Environmental factors: The layout should take into account factors such as temperature and humidity levels to ensure that stored items are protected from damage.
- Cost-effective: The layout should be cost-effective, minimizing the investment and operation costs and providing the best return on investment.
See lessFire outbreak is one of the risks associated with warehouse operations. Outline five measures that should be taken to minimize such a risk. (10 marks)November 2022
Conduct regular fire safety inspections and drills to ensure that all employees are familiar with evacuation procedures and understand the location of fire extinguishers and other emergency equipment. Implement a system for monitoring and controlling sources of ignition, such as electrical equipmentRead more
- Conduct regular fire safety inspections and drills to ensure that all employees are familiar with evacuation procedures and understand the location of fire extinguishers and other emergency equipment.
- Implement a system for monitoring and controlling sources of ignition, such as electrical equipment and heating systems.
- Store flammable materials in designated areas, away from sources of heat and ignition.
- Regularly maintain and clean all equipment and machinery to reduce the risk of fires caused by mechanical failure or overheating.
- Develop a fire response plan, including procedures for calling 911 and contacting the fire department.
- Install fire suppression systems, such as sprinklers and fire alarms, throughout the warehouse.
- Train employees on how to properly use fire extinguishers and other fire-fighting equipment.
- Keep exits and aisles clear of obstructions to ensure easy access for employees and emergency personnel.
- Maintaining a fire log book to record all fire incidents, near misses, and fire drills, and then use them to improve the warehouse’s fire safety.
- Regularly review and update warehouse fire safety procedures to ensure they are up to date and meet current regulations.
See lessThe racking method one of the methods that may be adapted for the storage of goods in a warehouse. Explain five SIS under which the method may be appropriate for use.(10 marks)November 2022
Racking is a method of storing goods in a warehouse by using shelving or other storage structures. The SIS (Size, Shape, and Weight) of the goods will determine the suitability of using racking method for storage. Size: Racking method is appropriate for use when the goods are of a smaller size, suchRead more
Racking is a method of storing goods in a warehouse by using shelving or other storage structures. The SIS (Size, Shape, and Weight) of the goods will determine the suitability of using racking method for storage.
- Size: Racking method is appropriate for use when the goods are of a smaller size, such as small parts or components. This is because racking allows for the efficient use of vertical space, which can be ideal for smaller items.
- Shape: Racking method is appropriate for use when the goods are of a uniform shape and size, such as boxes or cartons. This is because racking systems are typically designed for specific types of products, such as pallet racks for palletized goods, and are not as suitable for irregularly shaped items.
- Weight: Racking method is appropriate for use when the goods are of a lighter weight, such as small parts or components. This is because racking systems are typically designed to support specific weight loads and are not as suitable for heavy items.
- Volume: Racking method is appropriate for use when the goods have high volume, meaning that a large quantity of goods need to be stored in a limited space.
- Durability: Racking method is appropriate for use when the goods are of a durable nature, meaning that they can withstand the conditions of being stored on racks.
- Handling: Racking method is appropriate for use when the goods require frequent handling, meaning that they need to be easily accessible and retrievable.
- Type of goods: Racking method is appropriate for use when the goods are of a non-perishable nature, meaning that they do not require special storage conditions such as temperature or humidity control.
- Protection: Racking method is appropriate for use when the goods require minimal protection, meaning that they do not need to be protected from dust, moisture, or other environmental factors.
- Security: Racking method is appropriate for use when the goods do not require high level of security, meaning that they are not valuable or are not prone to theft.
- Organization: Racking method is appropriate for use when the goods require organization, meaning that they need to be stored in a specific way for ease of identification and retrieval.
See lessExplain five likely adverse consequences to an organization that fails to properly classify its goods.(10 marks)November 2022
Incorrect tax liability: Improper classification of goods can result in the organization being liable for incorrect taxes, such as tariffs, import/export duties, and value-added taxes. This can lead to financial penalties and fines. Compliance issues: Improper classification of goods can result in nRead more
- Incorrect tax liability: Improper classification of goods can result in the organization being liable for incorrect taxes, such as tariffs, import/export duties, and value-added taxes. This can lead to financial penalties and fines.
- Compliance issues: Improper classification of goods can result in non-compliance with laws and regulations, such as customs regulations and trade agreements. This can lead to legal issues and fines.
- Difficulty in obtaining insurance: Improper classification of goods can make it difficult for an organization to obtain insurance coverage for the goods, which can result in financial losses in case of damage or loss of goods during transportation.
- Difficulty in forecasting demand: Improper classification of goods can make it difficult for an organization to forecast demand for the goods, which can negatively impact the ability to meet customer requirements.
- Difficulty in managing inventory: Improper classification of goods can make it difficult for an organization to manage inventory levels, which can result in stockouts or overstocking of goods.
- Difficulty in identifying patterns: Improper classification of goods can make it difficult for an organization to identify patterns and trends in sales, which can negatively impact the ability to make informed business decisions.
- Difficulty in providing technical assistance: Improper classification of goods can make it difficult for an organization to provide technical assistance to customers, which can negatively impact customer satisfaction.
- Difficulty in tracking goods: Improper classification of goods can make it difficult for an organization to track goods, which can negatively impact the ability to manage and monitor the warehouse operations effectively.
- Difficulty in providing accurate financial reports: Improper classification of goods can make it difficult for an organization to provide accurate financial reports, which can negatively impact the ability to make informed business decisions.
- Reputation damage: Improper classification of goods can damage the reputation of the organization, which can negatively impact customer loyalty, sales and future business opportunities.
See lessDescribe the steps that a warehouse officer should follow i in the order picking process.(10 marks)November 2022
The order picking process involves the selection of specific items from the warehouse inventory to fulfill customer orders. A warehouse officer should follow these steps in the order picking process: Receive the order: The warehouse officer should first receive the order from the customer, which typRead more
The order picking process involves the selection of specific items from the warehouse inventory to fulfill customer orders. A warehouse officer should follow these steps in the order picking process:
- Receive the order: The warehouse officer should first receive the order from the customer, which typically includes a list of items to be picked and the quantities required.
- Check inventory: The warehouse officer should then check the inventory to ensure that the items are in stock and that there are sufficient quantities to fulfill the order.
- Prepare for order picking: The warehouse officer should then prepare for order picking by gathering the necessary equipment, such as hand trucks or pallet jacks, and by reviewing the order to ensure that all items are present and in good condition.
- Begin order picking: The warehouse officer should then begin the order picking process by locating the items in the warehouse and selecting them for the order.
- Check and pack: The warehouse officer should then check the items to ensure that they are in good condition and that they match the order. The warehouse officer should then pack the items securely for transport.
- Record items picked: The warehouse officer should then record the items that have been picked, typically by updating an inventory management system.
- Prepare for shipment: The warehouse officer should then prepare the items for shipment by labeling them correctly and arranging them for transport.
- Notify the shipping department: The warehouse officer should then notify the shipping department that the order is ready for shipment.
- Quality check: The warehouse officer should conduct a final check of the items before the order is shipped to ensure that the items match the order, are in good condition and are properly packaged
- Document and report: The warehouse officer should document the order picking process and report any discrepancies or issues to the appropriate personnel for resolution.
See lessExplain five reasons that may account for the increased use of Standard Gauge Railway (SGR) as a mode of transport for transit of goods in Kenya. (10 marks)November 2022
Cost efficiency: SGR is typically less expensive than road transport, particularly over long distances. This can result in cost savings for businesses that transport goods over long distances. Reliability: SGR is a more reliable mode of transport than road transport, particularly in areas with poorRead more
- Cost efficiency: SGR is typically less expensive than road transport, particularly over long distances. This can result in cost savings for businesses that transport goods over long distances.
- Reliability: SGR is a more reliable mode of transport than road transport, particularly in areas with poor road infrastructure. The SGR is less prone to disruptions due to traffic congestion, road closures, and other issues that can delay road transport.
- Speed: SGR is a faster mode of transport than road transport, particularly over long distances. This can result in faster delivery times for goods, which can be particularly important for perishable goods or for businesses that need to meet tight delivery deadlines.
- Capacity: SGR can transport more goods at once than road transport. This can result in increased efficiency for businesses that transport large quantities of goods.
- Safety: SGR is a safer mode of transport than road transport, particularly in areas with poor road infrastructure. SGR is less prone to accidents and other safety issues than road transport.
- Reducing traffic congestion: SGR can help to reduce traffic congestion on the roads, particularly in urban areas. This can result in improved traffic flow and reduced travel times for all road users.
- Reducing environmental impacts: SGR has lower emissions than road transport, particularly for long-distance transportation. This can result in reduced environmental impacts and improved air quality.
- Government initiatives: Government initiatives to improve infrastructure, such as the SGR, can attract more businesses to invest in Kenya and increase the competitiveness of the Kenyan economy.
See lessWevule Limited has decided to locate its warehouse far away from the customers. Outline five disadvantages of this move to the organization.(10 marks)November 2022
Increased transportation costs: The longer distance between the warehouse and customers will increase the cost of transportation and logistics. This includes higher fuel costs, longer transit times, and the need for more transportation resources. Longer lead times: The longer distance between the waRead more
- Increased transportation costs: The longer distance between the warehouse and customers will increase the cost of transportation and logistics. This includes higher fuel costs, longer transit times, and the need for more transportation resources.
- Longer lead times: The longer distance between the warehouse and customers will increase the lead time for delivery of goods, resulting in longer waiting times for customers, which may negatively impact customer satisfaction.
- Increased inventory holding costs: The longer distance between the warehouse and customers may result in the need for larger inventory holding to ensure that products are available for customers when needed. This increases the cost of holding inventory.
- Reduced flexibility: A warehouse located far away from customers makes it difficult to respond quickly to changes in demand, which can negatively impact the ability to meet customer requirements, and can also cause difficulties in forecasting.
- Reduced control: A warehouse located far away from customers can make it difficult to manage and monitor the warehouse operations effectively, which can negatively impact the accuracy and efficiency of the warehouse.
- Increased risks: A warehouse located far away from customers increases the risk of delays or disruptions in the supply chain, which can negatively impact the ability to meet customer requirements, and may cause stockouts.
- Difficulty in forecasting demand: A warehouse located far away from customers may make it difficult to accurately forecast demand for goods, which can negatively impact the ability to meet customer requirements.
- Difficulty in managing returns: A warehouse located far away from customers may make it difficult to manage and process customer returns, which can negatively impact customer satisfaction.
- Difficulty in providing technical assistance: A warehouse located far away from customers may make it difficult to provide technical assistance to customers,
See lessExplain five factors that an operations manager should consider when developing a physical distribution system for the firm. (10 marks) November 2022
Transportation: The type of transportation to be used, such as road, rail, sea, or air, and the corresponding infrastructure available. The manager should also consider the cost of transportation, transit times, and reliability of the carrier. Warehousing: The location, size and type of warehouse, aRead more
- Transportation: The type of transportation to be used, such as road, rail, sea, or air, and the corresponding infrastructure available. The manager should also consider the cost of transportation, transit times, and reliability of the carrier.
- Warehousing: The location, size and type of warehouse, as well as inventory management systems, including safety and security of the warehouse.
- Distribution channels: The number of distribution channels and their location, as well as the type of products and services that the company offers.
- Lead times: The time it takes for the product to be delivered from the supplier to the customer, and the time it takes for the product to be delivered from the warehouse to the customer.
- Order processing: The time it takes to process an order, including the time it takes to receive the order, pick and pack the order, and deliver the order.
- Customer service: The level of customer service required, including the type of customer service provided and the time it takes to respond to customer inquiries.
- Capacity: The capacity of the physical distribution system, including the number of products that can be stored, the number of orders that can be processed, and the number of customers that can be served.
- Cost: The cost of the physical distribution system, including the cost of transportation, warehousing, order processing, and customer service.
- Inventory management: The inventory management systems, including the number of products that should be held in inventory, the reorder point, and the safety stock.
- Legal and regulatory compliance: The legal and regulatory requirements, including compliance with customs, import and export regulations, and safety and environmental regulations.
See lessA recent audit of the warehouse function at Homo Limited has revealed a high level of stockholding. Explain five sectors that may account for this situation.(10 marks)November 2022
Procurement: The procurement process may not be aligned with the company's inventory management strategy. This could lead to overstocking of goods, as well as delays in the receipt of goods from suppliers. Production: The production process may be producing more goods than the company can sell, leadRead more
- Procurement: The procurement process may not be aligned with the company’s inventory management strategy. This could lead to overstocking of goods, as well as delays in the receipt of goods from suppliers.
- Production: The production process may be producing more goods than the company can sell, leading to an increase in inventory levels.
- Sales: The sales process may not be meeting the company’s expectations, leading to an increase in inventory levels.
- Logistics: The logistics process may not be efficient, leading to delays in the delivery of goods and an increase in inventory levels.
- Quality control: The quality control process may be leading to high levels of defective goods, which may need to be held in inventory until they can be repaired or sold as seconds.
- Seasonal demand: The company may be stocking up on goods to meet seasonal demand, which may lead to overstocking of goods when demand is low.
- Plan forecasting: The forecasting process may not be accurate, leading to overstocking of goods.
- Economic environment: The economic environment may be uncertain, leading to an increase in inventory levels as the company tries to protect itself against possible future shortages of goods.
- IT system: The IT system of the company may not be up-to-date, which may lead to inaccurate inventory data and an overstocking of goods.
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