Cathay Pacific Logistics Study Case

HERPIN DWIJAYANTI Global Logistics Case Report Aviation Spare part tally Chain Management Optimisation at chinaware peaceful Airways Limited 1. Why is pay-hand(a) fork out chain heed of spare objet darts so critical for an air duct? advantageously bounteous SCM of spare separate for an airline is genuinely(prenominal)(prenominal) critical imputable to side by side(p) reasons: ? Spare separate are important part of an airline as aircraft require maintenance to make certainly its arctic to fly with passengers in a long distance. A worst maintained aircraft lead cause accidents. Therefore good SCM is very critical. ? It is not simple to manage spare parts of aircrafts. Aircraft lots 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 to a greater extent than a dozen times. Therefore a good SCM is very critical. ? There is stric t regulation regarding the airplane safety. The airwave effort was regulated by international and local government such as the US Federal Aviation plaque (FAA). the FAA had the ascendency to ground a plane if airline operators did not distinguish the deferrable repairs within the stipulated timeframe.

All suppliers of aeroplane spare parts were compulsory to possess special legal certifications and formal protocols, which were stipulations that indicated precondition of tariff in case of an accident. Therefore, a good SCM is very critical. ? bang-up SCM will reduce cost. The driving force rump supply chai n management (SCM) is to reduce stock. hig! h inventory will cost higher for the company as it needs more holding cost. ? Good SCM will avoid superfluous materials. cede chain management is all about having the set proceeds in the right place, at the right price, at the right time and in the right condition. Therefore planning, computer computer programming and control of the supply chain is so critical. 2. Explain the financial impact of having higher inventory level of spare parts. higher(prenominal) inventory level...If you want to get a full essay, social club it on our website: OrderCustomPaper.com

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