Trade Off Logistic

1. Discuss the trade-off between locating manufacturing operations in countries with relatively low wages versus manufacturing in relatively high-wage countries like Singapore or Australia.

Operations in low wage countries would make the total cost lower because spent less for wages, and low wages means that the countries are developing countries which means raw materials, wages, other costs cheaper but the goods that manufactured will be cheaper.

Operations in high wage countries would effect the total cost which is more expensive but the goods that the manufactured will be more expensive either, and high wage countries means the countries are developed countries which company should get more profit by increase the price of the goods.

2. In terms of warehousing design, give examples of trade-offs involving space, labour, and the use of automation. Why is it important to understand these trade-offs?

Space, labour, and the use of automations are related to each other. In term of warehousing design, space handling is important because it will decrease cost such example arranging the freight before transporting the goods and maximize the effiency to reach limit weight and it will decrease the transportation costs. Handling needs more experienced or more skilled labour, so labour and space related to each other, to increase the efficiency of the space arrangement it needs skilled labour which might spent more wage for it. The use of automation has 4types: manual which is labour-intensive, slower (human limitations), and higher human error rates ; mechanised system such as using forklift, tractor trailers, etc ; semiautomated system which has high fixed cost but low variable cost and low flexibility such as robotics system ; automated system which has highest fixed cost, lowest variable and labour cost with low flexibility, automated sysmte potential to eliminate of direct labour by change it with capital equipment.

3. What benefits to flexible unit-load materials...