Cathay Pacific Logistics Study Case

HERPIN DWIJAYANTI Global Logistics Case Report Aviation Spare move tally Chain Management Optimisation at mainland China peaceful Airways Limited 1. Why is pay-hand(a) furnish chain guardianship of spare objet darts so critical for an skyway? advantageously adequate SCM of spare separate for an airline is truly(prenominal) critical imputable to hobby reasons: ? Spare separate are important part of an airline as aircraft require maintenance to make certainly its condom to fly with passengers in a long distance. A distressing maintained aircraft give cause accidents. Therefore good SCM is very critical. ? It is not simple to manage spare parts of aircrafts. Aircraft factors were complex, upper-level modules consisting of dozens or hundreds of parts. The life span of a component could exceed two decades, during which it might be repaired or overhauled more than than a dozen times. Therefore a good SCM is very critical. ? There is strict regulation rega rding the airplane safety. The airwave assiduity was regulated by international and local government such as the US Federal Aviation plaque (FAA). the FAA had the permission to ground a plane if airline operators did not fatten the deferrable repairs within the stipulated timeframe.

All suppliers of aeroplane spare parts were involve to possess special legal certifications and formal protocols, which were stipulations that indicated precondition of accountability in case of an accident. Therefore, a good SCM is very critical. ? close SCM will reduce cost. The driving force rump supply chain management (SC M) is to reduce stock. high inventory will! cost higher for the company as it needs more holding cost. ? Good SCM will avoid superfluous materials. try chain management is all about having the correctly mathematical product in the right place, at the right price, at the right time and in the right condition. Therefore planning, computer programming and control of the supply chain is so critical. 2. Explain the financial impact of having higher inventory level of spare parts. high inventory level...If you want to get a full essay, night club it on our website: OrderCustomPaper.com

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