Supply Chain Location

LOG 501 Module 3 - Case

Location

Q1 . Does Gulfstream use location to maximize the effectiveness and efficiency of its supply chain (Explain

Gulfstream has used location to maximize the effectiveness and efficiency of its supply chain . Its plant in Savannah , located on the East Coast , offers great logistics advantages to the company . It has convenient air , rail and seaport access . Having to outsource its major components from around the world , this is a very important consideration for the company . For example , the tails and floors for Gulfstream 's G500 and

G550 aircraft are made by Fokker in Holland , and the engines for its G350 /G450 /G500 and G550 aircraft are manufactured by Rolls Royce in Germany (Thuermer , K , 2004

Q2 . How would you describe the relationship between Gulfstreams `just in time` manufacturing and its strategic approach to choosing locations

Just in time ' manufacturing of Gulfstream is described as smoother production cycle , simplified engineering changes , and fewer parts in inventory through the use of assembled parts in kits . Gulfstream 's strategy is to make sure that there are normally three sets of kits or materials available , one at the manufacturing site , one in the warehouse , and another in transit . When something goes wrong during production and there is a part or parts needed , it is readily available in the warehouse . It will not also cause any delay in the complete production cycle since another kit will be arriving soon as replacement Lower inventory can be translated to cost savings in materials...