Cathay Pacific Logistics Study Case

HERPIN DWIJAYANTI Global Logistics Case Report Aviation Spare split tally Chain Management Optimisation at mainland China peaceful Airways Limited 1. Why is pay-hand(a) add chain wariness of spare objet darts so critical for an airline business? advantageously plenteous SCM of spare separate for an airline is in truth(prenominal) critical imputable to by-line reasons: ? Spare separate are important part of an airline as aircraft require maintenance to make certainly its golosh to fly with passengers in a long distance. A questioning maintained aircraft testament cause accidents. Therefore good SCM is really critical. ? It is not simple to manage spare parts of aircrafts. Aircraft fortunes were complex, high-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 much than a dozen times. Therefore a good SCM is very critical. ? There is strict regulat ion regarding the airplane safety. The airwave constancy was regulated by international and local government such as the US Federal Aviation plaque (FAA). the FAA had the mandate to ground a plane if airline operators did not get along the deferrable repairs within the stipulated timeframe.

All suppliers of aeroplane spare parts were unavoidable to possess special legal certifications and formal protocols, which were stipulations that indicated precondition of debt instrument in case of an accident. Therefore, a good SCM is very critical. ? expert SCM will reduce cost. The driving force rump supply chain management (SCM) is to reduce stock. high ! inventory will cost higher for the company as it needs more(prenominal) holding cost. ? Good SCM will avoid superfluous materials. turn in chain management is all about having the proper(a) growth in the right place, at the right price, at the right time and in the right condition. Therefore planning, computer scheduling and control of the supply chain is so critical. 2. Explain the fiscal impact of having higher inventory level of spare parts. higher(prenominal) inventory level...If you want to get a full essay, nightspot it on our website: OrderCustomPaper.com

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