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Management Question

Description

I want the answer without similarity at all, and Conceptual and professional, they’re important. I have a solution model.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Logistics Management (MGT 322)
Due Date: 30/11/2024 @ 23:59
Course Name:

Student’s Name:

Course Code: MGT322

Student’s ID Number:

Semester: First

CRN:
Academic Year:2024-25-1st

For Instructor’s Use only
Instructor’s Name: Dr. Abdulelah Alnafisah
Students’ Grade: / 6

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY







The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
Logistics Management
ASSIGNMENT -3
Submission Date by students: 30/11/2024
Place of Submission: Students Grade Centre
Weight:

6 Marks

Learning Outcome:
1. Demonstrate an understanding of how global competitive environments are changing supply chain
management and logistics practice.
2. Apply essential elements of core logistic and supply chain management principles.
3. Analyze and identify challenges and issues pertaining to logistical processes.
Assignment Workload:
This assignment is an individual assignment.

Critical Thinking
Increased global competition leads the industry to increasing efficiency by means of economies of scale
and internal specialization so as to meet market conditions in terms of flexibility, delivery performance
and quality (Yamashina, 1995). The changes in the present competitive business environment are
characterized by profound competition on the supply side and keen indecisive in customer requirements
on the demand side. These changes have left their distinctive marks on the different aspect of the
manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective
manufacturing has become a requirement to remain competitive.
To meet all the challenges organizations try to introduce different manufacturing and supply techniques.
Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the
quality of product. To achieve this goal, different manufacturing and supply techniques have been
employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated
manufacturing strategies that have drastically changed the way manufacturing firm’s leads to
improvement of manufacturing performance (Fullerton and McWatters, 2002).

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

College of Administrative and Financial Sciences
Read textbook chapter 7 or secondary data on the internet and answer the following questions.
Question:
1. Why did large manufacturing companies embrace the JIT model and lean thinking?
2. Discuss major types of Waste, and why overproduction is the mother of all kinds of waste
companies must avoid during production.
3. after artificial intelligence was developed. For SCM in the future, is the agile supply chain an
ideal concept? Use examples to support your points.
4. APA style Reference)
Note: Each answer should be within the 300- 400 words limit.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 2 MGT322 (3rd Term 2022-2023)
Deadline: 03/6/2023 @ 23:59

Semester: 3rd

Student’s Name:
Student’s ID Number:
CRN:

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Course Name: Logistics Management
Course Code: MGT322

IT

Academic Year: 1444 H (2022-2023) IIIrd Term

Students’ Grade: /15

EL

For Instructor’s Use only
Instructor’s Name: Lujain Miralam

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY
● This assignment is an individual assignment.
● Due date for Assignment 2 is 3/06/2023

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● The Assignment must be submitted only in WORD format via allocated folder.
● Assignments submitted through email will not be accepted.

SE

● Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.

● Students must mention question number clearly in their answer.
● Late submission will NOT be accepted.
● Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.

● All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
● Submissions without this cover page will NOT be accepted.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Logistics Management
ASSIGNMENT -2

Assignment Workload:

EL

IT

E

Submission Date by students: Before the end of Week- 11th
Place of Submission: Students Grade Centre
Weight: 15 Marks
Learning Outcome:
1. Demonstrate an understanding of how global competitive environments are changing supply chain
management and logistics practice.
2. Apply essential elements of core logistic and supply chain management principles.
3. Analyze and identify challenges and issues pertaining to logistical processes.

This assignment is an individual assignment.

Critical Thinking

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The global marketplace has witnessed increased pressure from customers and competitors in
manufacturing as well as the service sector (Basu, 2001; George, 2002). Due to the rapidly changing

SE

global marketplace, only those companies will be able to survive that will deliver products of good quality
at a cheaper rate to achieve their goal companies try to improve performance by focusing on cost-cutting,
increasing productivity levels, and quality and guaranteeing deliveries in order to satisfy customers
(Raouf, 1994).

Increased global competition leads the industry to increase efficiency by means of economies of scale and
internal specialization so as to meet market conditions in terms of flexibility, delivery performance and
quality (Yamashina, 1995). The changes in the present competitive business environment are
characterized by profound competition on the supply side and keen indecisive in customer requirements
on the demand side. These changes have left their distinctive marks on the different aspect of the

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
manufacturing organizations (Gomes et al., 2006). With this increasingly global economy, cost-effective
manufacturing has become a requirement to remain competitive.
To meet all the challenges organizations, try to introduce different manufacturing and supply techniques.

E

Management of organizations devotes their efforts to reducing manufacturing costs and improving the
quality of the product. To achieve this goal, different manufacturing and supply techniques have been

IT

employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated
manufacturing strategies that have drastically changed the way manufacturing firms leads to
improvement of manufacturing performance (Fullerton and McWatters, 2002).

EL

Read textbook chapter 7 or secondary data on the internet and answer the following questions.
Question:

1. Differentiate between lean Thinking and the JIT model. Why have Manufacturing Companies
adopted Lean Thinking and the JIT model? (3.5 Marks)

U

2. Briefly describe major types of Waste, out of all types of waste which one is the biggest waste
companies must keep in mind during production. (3.5 Marks)

SE

3. What are the benefits from Suppliers to end users for using lean thinking? Assess the reasons
(suitable examples), (3.5 Marks)

4. The arrival of artificial intelligence. The agile supply chain is a perfect concept for future SCM?
Give reasons with suitable examples. (3.5 Marks)

5. Reference ((1.0 Marks))

Each answer should be within the limit of 250- 300 words.
The Answer must follow the outline points below:
● Lean Thinking and JIT Concept
● Agile Supply chain
● Their Main functions

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
● Reasons with suitable Examples
● Reference

E

Ans 1: Lean Thinking is a business methodology developed by James Womack and Daniel Jones that
is designed to eliminate waste and create a streamlined system of production in order to maximize

IT

efficiency and profitability. The basic premise of Lean Thinking is to focus on the customer and deliver
value by removing all non-value-added activities from the production process. It is based on the idea that
all activities that do not add value should be eliminated. This is done by examining the entire value stream

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and identifying and removing activities that don’t add value.

The Just-in-Time (JIT) model is a manufacturing approach that focuses on reducing inventory and
increasing efficiency. The basic principle of JIT is to produce what is needed when it is needed, and no
more. This approach is intended to reduce waste by eliminating excessive inventory and excess
production. JIT is a type of lean manufacturing system because it is focused on eliminating all non-value-

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added activities from the production process.
Manufacturing companies have adopted Lean Thinking and the JIT model in order to become more

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competitive. By streamlining their processes and eliminating waste, companies can increase their
efficiency and reduce their costs. Additionally, companies can use Lean Thinking and the JIT model to
reduce their inventory levels and increase the speed of their production cycles. This allows them to respond
faster to customer demand, which can lead to increased sales. The Lean Thinking and JIT model can also
help companies manage their resources more effectively, allowing them to reduce their operating costs
and increase their profitability.

Overall, Lean Thinking and the JIT model have been adopted by many manufacturing companies in order
to improve their efficiency and reduce their costs. By streamlining their processes and eliminating waste,
companies can become more agile and better able to respond to customer demand. Additionally, the Lean

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
Thinking and JIT model can help companies reduce their inventory levels, increase their production
speeds, and manage their resources more effectively.

E

Ans 2: Waste is any activity that consumes resources without producing value. There are seven major

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types of waste that companies must be aware of during production, these include:

1. Overproduction: This is the production of more than what is needed at the moment, and can lead to
excess inventory and longer lead times.

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2. Waiting: This is when products and materials are waiting to be processed and can lead to delays in
production.

3. Transportation: This is the movement of materials and products between locations that are not necessary
for the production process and can lead to delays and added costs.

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4. Motion: This is the unnecessary movement of people and materials during the production process,
which can lead to errors and delays.

SE

5. Inventory: This is the excess stock that is kept in order to meet customer demand, which can lead to
higher costs and a longer lead time.
6. Over-processing: This is the production of products with more features or higher quality than what is
needed, which can lead to higher costs and longer lead times.
7. Defects: This is when products or materials do not meet customer specifications and can lead to higher
costs and customer dissatisfaction.
Out of all these types of waste, the biggest one that companies must keep in mind during production is
overproduction. Overproduction can lead to excess inventory, longer lead times, and higher costs.
Additionally, it can result in wasted materials, time, and effort. Companies should strive to produce only
what is needed when it is needed in order to reduce waste and increase efficiency. This can be done through

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
the use of Lean Thinking and the JIT model, which focuses on eliminating all non-value-added activities
from the production process.

Ans 3: The use of Lean Thinking can provide many benefits to suppliers and end users. For suppliers,

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Lean Thinking can help reduce costs by eliminating waste and streamlining processes. By removing nonvalue-added activities, suppliers can reduce their overhead costs, simplify their production process, and

which can lead to better cash flow and reduced risk.

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increase their efficiency. Additionally, Lean Thinking can help suppliers reduce their inventory levels,

For end users, Lean Thinking can lead to better customer service, faster delivery times, and improved

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quality. By streamlining their processes and reducing waste, suppliers can increase their production speed
and deliver their products in a timely manner. Additionally, by removing non-value-added activities,
suppliers can improve their product quality, which can lead to higher customer satisfaction.
In addition, Lean Thinking can help suppliers and end users reduce their environmental impact. By
reducing waste and streamlining processes, companies can reduce their energy consumption and

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emissions. Additionally, by reducing inventory levels, companies can reduce their need for packaging
materials and transportation, which can help them lower their carbon footprint.

SE

Overall, the use of Lean Thinking can provide many benefits to both suppliers and end users. For suppliers,
Lean Thinking can help reduce costs and simplify their production process. For end users, Lean Thinking
can lead to better customer service, faster delivery times, and improved quality. Additionally, Lean
Thinking can help both suppliers and end users reduce their environmental impact.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
Ans 4: The arrival of artificial intelligence (AI) is transforming the way companies manage their supply
chains. AI can provide companies with the tools and insights they need to become more agile and
responsive to customer demand. AI can enable companies to quickly identify trends and adjust their supply

E

chain accordingly in order to meet customer needs. Additionally, AI can help companies improve their
forecasting capabilities, allowing them to more accurately predict customer demand and plan their

IT

operations accordingly.

The agile supply chain is a perfect concept for future SCM, as it embraces the use of emerging technologies
such as AI to become more responsive and efficient. An agile supply chain is one that is able to quickly

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adapt to changing market conditions in order to meet customer needs. By leveraging AI, companies can
gain access to real-time data and insights that can help them identify customer trends and adjust their
supply chain accordingly. Additionally, AI can help companies automate processes and reduce their costs,
allowing them to become more competitive.

Furthermore, AI can help companies reduce their environmental impact by optimizing their supply chain

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operations. AI can help companies reduce their energy and resource consumption, as well as their
emissions. Additionally, AI can help companies identify areas where they can reduce waste and increase

SE

efficiency, which can help them reduce their carbon footprint.
Overall, the arrival of AI is transforming the way companies manage their supply chains. The agile supply
chain is a perfect concept for future SCM, as it embraces the use of emerging technologies to become
more responsive and efficient. AI can provide companies with the tools and insights they need to become
more agile and reduce their environmental impact.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫الجامعة السعودية اإللكتونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
References
1. Womack, J., & Jones, D. (2003). Lean thinking: Banish waste and create wealth in your corporation.
New York, NY: Simon & Schuster.

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2. Ahire, S. L., Golhar, D. Y., & Waller, M. A. (1996). Just-in-time manufacturing: An update. Journal of

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Operations Management, 14(3), 193–213.
3. Kayal, M., & Bhattacharya, S. (2018). Impact of artificial intelligence on supply chain management.
International Journal of Business and Management, 13(1), 1–7.

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4. Kekre, S., & Deshmukh, S. (2000). Agile supply chain: An approach to customer service. Journal of

SE

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Business Logistics, 21(2), 47–64.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 2 MGT322 (3rd Term 2022-2023)
Deadline: 03/6/2023 @ 23:59

Semester: 3rd

Student’s Name:
Student’s ID Number:
CRN: 30439

E

Course Name: Logistics Management
Course Code: MGT322

For Instructor’s Use only
Instructor’s Name: Dr. Mir S Satar
/15

Level of Marks:

EL

Students’ Grade:

IT

Academic Year: 1444 H (2022-2023) IIIrd Term

Instructions – PLEASE READ THEM CAREFULLY

This assignment is an individual assignment.
Due date for Assignment 2 is 3/06/2023

U

 The Assignment must be submitted only in WORD format via allocated folder.
 Assignments submitted through email will not be accepted.
 Students are advised to make their work clear and well presented, marks may be reduced

SE

for poor presentation. This includes filling your information on the cover page.

 Students must mention question number clearly in their answer.
 Late submission will NOT be accepted.
 Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.

 All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
 Submissions without this cover page will NOT be accepted.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Logistics Management
ASSIGNMENT -2

EL

Assignment Workload:

IT

E

Submission Date by students: Before the end of Week- 11th
Place of Submission: Students Grade Centre
Weight: 15 Marks
Learning Outcome:
1. Demonstrate an understanding of how global competitive environments are changing supply chain
management and logistics practice.
2. Apply essential elements of core logistic and supply chain management principles.
3. Analyze and identify challenges and issues pertaining to logistical processes.

This assignment is an individual assignment.

Critical Thinking

The global marketplace has witnessed increased pressure from customers and competitors in

U

manufacturing as well as the service sector (Basu, 2001; George, 2002). Due to the rapidly changing
global marketplace, only those companies will be able to survive that will deliver products of good quality

SE

at a cheaper rate to achieve their goal companies try to improve performance by focusing on cost-cutting,
increasing productivity levels, and quality and guaranteeing deliveries in order to satisfy customers
(Raouf, 1994).

Increased global competition leads the industry to increase efficiency by means of economies of scale and
internal specialization so as to meet market conditions in terms of flexibility, delivery performance and
quality (Yamashina, 1995). The changes in the present competitive business environment are
characterized by profound competition on the supply side and keen indecisive in customer requirements
on the demand side. These changes have left their distinctive marks on the different aspect of the
manufacturing organizations (Gomes et al., 2006). With this increasingly global economy, cost-effective
manufacturing has become a requirement to remain competitive.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
To meet all the challenges organizations, try to introduce different manufacturing and supply techniques.
Management of organizations devotes their efforts to reducing manufacturing costs and improving the
quality of the product. To achieve this goal, different manufacturing and supply techniques have been
employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated

E

manufacturing strategies that have drastically changed the way manufacturing firms leads to
improvement of manufacturing performance (Fullerton and McWatters, 2002).

IT

Read textbook chapter 7 or secondary data on the internet and answer the following questions.
Question:

EL

1. Differentiate between lean Thinking and the JIT model. Why have Manufacturing Companies
adopted Lean Thinking and the JIT model? (3.5 Marks)

2. Briefly describe major types of Waste, out of all types of waste which one is the biggest waste
companies must keep in mind during production. (3.5 Marks)
3. What are the benefits from Suppliers to end users for using lean thinking? Assess the reasons

U

(suitable examples), (3.5 Marks)

4. The arrival of artificial intelligence. The agile supply chain is a perfect concept for future SCM?

SE

Give reasons with suitable examples. (3.5 Marks)
5. Reference ((1.0 Marks))

Each answer should be within the limit of 250- 300 words.
The Answer must follow the outline points below:

Lean Thinking and JIT Concept

Agile Supply chain

Their Main functions

Reasons with suitable Examples

Reference

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
Ans 1:
Lean Thinking vs. JIT Model:
Lean Thinking and Just-In-Time (JIT) models have the same overarching objectives, which are to optimize

E

efficiency, decrease waste, and increase production respectively. However, their goals and the areas in
which they might be used are distinct from one another. Lean Thinking is an all-encompassing concept

IT

with the purpose of establishing an atmosphere in which there is a continuous push to enhance processes
and get rid of stages that aren’t essential. It is necessary to identify inefficient procedures in areas like as

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product creation, production, administration of the supply chain, and contact with clients, and then put an
end to such procedures. The primary objective of lean thinking is to maximize the value provided to
customers while simultaneously lowering manufacturing costs and preserving or enhancing product

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quality.

On the other hand, the JIT model is a production strategy that tries to improve return on investment (ROI)

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by lowering the amount of stock-in-process inventory as well as the costs that are connected with it. JIT
is an approach that places a major emphasis on the management of inventory, and it may be understood
as a particular method within the greater context of Lean Thinking. Just-in-time manufacturing is based
on the concept of producing and delivering finished things, sub-assemblies, and purchased materials at
precisely the right moment so that they may be converted into finished goods and manufactured
components.
2. Adoption of Lean Thinking and JIT Model

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
Both the Lean Thinking philosophy and the Just-In-Time production model have seen widespread
adoption in the manufacturing industry for a variety of reasons. Eliminating wasteful spending is a major
driving force. By lowering the amount of trash produced, these strategies help to bring down overall

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manufacturing costs. Waste reduction may take many forms, including the elimination of needless
production and inventory, which can eat up capital and result in expenses associated with storage, as well

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as the saving of time and energy throughout the manufacturing process.

One further significant benefit associated with these methods is an improvement in the overall quality of

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the products that are produced. It is not uncommon for a company’s output quality to increase in direct
correlation with its dedication to the pursuit of continuous improvement and the reduction of waste. As a
direct consequence of this, customer satisfaction levels rise, and there is a possibility that the company’s

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market share may increase.

Lean Thinking and JIT both have a number of benefits, one of which is an improved responsiveness to

SE

customer demand. Just-in-time manufacturing is one method that enables businesses to swiftly adjust their
production strategies in response to fluctuating customer preferences. This method requires businesses to
maintain a smaller inventory of goods than is traditionally done.
Productivity is another area that will increase because to the implementation of these tactics. Eliminating
ineffective processes and shifting attention to those that offer value are two of the most common ways for
businesses to boost productivity without increasing the amount of resources they commit.
Finally, the deployment of Lean Thinking and JIT has the potential to cultivate a workforce that is more
self-reliant and invested in their job. When workers at every level of an organization are encouraged to

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
participate in the process of locating and getting rid of trash, those workers acquire a deeper feeling of
ownership over their job and take more delight in the outcomes.

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Ans 2:
1. Types of Waste:

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In Lean Thinking, waste is classified into seven subcategories, which are sometimes referred to
collectively by the acronym “TIMWOOD.” The following are the classes that are being questioned:

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• Transport: This refers to moving goods or products to locations where it is not essential to do so when
there is a possibility of making a profit. There is no benefit to transferring an object, and there is a risk
that the item will become damaged or disappear altogether.

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• Inventory: It is counterproductive to have an excessive amount of stock on hand. It is a significant waste
of resources, it consumes space in the storage facility, and it runs the risk of becoming bad before its due

SE

date. The amount of time and money required to handle an increased inventory is proportional to the size
of the inventory.

Waste Motion The phrase “wasteful motion” refers to the additional walking or reaching that a worker is
required to do when a workplace or a technique is not optimized for the worker’s demands. This can lead
to injuries.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
• Waiting: The term “waiting waste” refers to situations in which underutilized resources are allowed to
stay idle. It’s possible that workers are holding back as they wait for supplies or orders, or that a piece of
machinery is idle while its load is being switched. The time that is spent waiting is time that is always lost.

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• Overproduction occurs when there is a greater supply of a good than there is demand for it or when

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production of a product begins before there is a requirement for the good. When a product is produced in
excess, it increases the likelihood that it will become obsolete, as well as the costs associated with its
storage and management.

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• Over processing: When referring to a product, the term “over processing” denotes that it has undergone
or been equipped with more effort or features than are strictly required. This results in the waste of
resources and has the potential to push up the price of the product without providing the customer with

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anything of value.

• Defects: Anything that does not meet the quality standards established for a product or service is

SE

considered to be defective. It is a waste of time and resources to attempt to fix or replace things that are
defective. In addition, issues are directly responsible for clients who are unhappy with the service they
received.

Lean Thinking examines these seven different types of waste (TIMWOOD) in order to boost productivity
and provide customers more value for their money.
2. The Biggest Waste to Keep in Mind:

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
It is usual practice to see overproduction as the single most critical type of waste that companies must
handle during the production process. When items are created in excessive quantities due to the outcome
of having extra inventory, significant amounts of waste are produced. This includes traveling, moving,

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standing about, and experiencing delays. In addition, because there is always an accessible surplus of

factor that may be concealed by overproduction.

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stock, quality defects have a greater chance of going unnoticed for longer intervals of time, which is a

It is essential for firms to cut back on their surplus production since doing so may result in large savings,

EL

improved cash flow, and more receptivity to shifting demands from customers. As a consequence of this,
businesses that are just getting started with Lean or JIT implementations would be wise to concentrate
initially on reducing their levels of overproduction. It is essential to keep in mind, however, that because
every company operates under its own particular conditions and has its own particular set of activities, the

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“most significant” waste may seem differently from one company to the next. In order to determine which

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type of waste poses the greatest threat to the company, it is necessary to do a thorough analysis of its
operations.
Ans 3:

1. Suppliers:

When it comes to perks, adopting a lean approach may be quite advantageous for suppliers. By
streamlining their operations and cutting down on waste, suppliers may improve their efficiency, reduce
their expenses, and enhance their profitability. Just-in-time inventory procedures are one example of a
way that enables suppliers to cut down on the quantity of stock that they have on hand, hence saving

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
money. In a similar vein, if a provider can reduce the amount of errors that occur with their goods and
services, they may save both money and time. In addition, lean procedures improve the dependability and
regularity of the products that are created, which is beneficial not only to the status of the provider but

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also to the relationship it has with its customers.

IT

2. Manufacturers:

It’s possible that adopting a lean approach may be of considerable advantage to manufacturers as well. By
concentrating on operations that add value to their products and reducing waste, manufacturers may

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increase their operational efficiency and drive down their operating expenses. It is generally agreed that
Toyota was an industry pioneer in the use of lean manufacturing techniques. Through the use of lean
concepts such as Just-In-Time production and continuous improvement (kaizen), Toyota has emerged as
one of the most successful automobile manufacturers in the world. Because of these strategies, they have

SE

standard.

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been able to swiftly adapt to the ever-shifting demands of their customers and produce vehicles of a high

3. Distributors:

Distributors may employ “lean thinking” to cut away at efficiencies in the method of delivery, such as
inefficient transit, movement, and hoarding, which are all examples of inefficiencies that may be reduced.
It is instructive to look at how one distributor used lean ideas to restructure its warehouse structure and
reduce the amount of time it took for products to flow through the warehouse. As a direct consequence of
this, the amount of effort required for selecting and packaging orders is reduced. A Just-In-Time system,

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
which synchronizes delivery with the demands of consumers, is another method that distributors may use
to decrease the amount of stock they have on hand.
4. Retailers:

E

The adoption of a lean mindset may result in a number of positive outcomes for retail establishments,

IT

including improved inventory management, less overstocking, and more effective operations. If a retailer
uses a demand forecasting system, it may be able to better anticipate the demand from customers and
adjust orders accordingly, hence lowering the likelihood of stockouts and surpluses occurring. In addition,

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the company may implement lean principles into its checkout process in order to enhance its efficiency
and reduce the amount of time customers have to wait.
5. End Users:

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When applied throughout the entirety of the supply chain, lean thinking has the potential to have
significant and far-reaching benefits on customers. Consumers profit from the price reductions that are the

SE

direct result of players in the supply chain discovering new methods to run their businesses more
effectively and save expenses. Because they contribute to improved product quality and more consistency,
lean techniques are also beneficial to the final consumer. The implementation of lean manufacturing
processes has allowed the automotive industry to provide consumers with the benefits of both affordable
costs and high-quality products, making it a great instance of how this idea is put into practice. In addition,
putting JIT concepts into practice enables organizations to be very responsive to the demands of their
consumers by delivering the products and services their clients want precisely when they want them.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
Ans 4:
The development of artificial intelligence (AI) has not only increased the significance of the notion of an
agile supply chain, but it has also unlocked an immense potential for altering supply chain management

E

(SCM). The dynamic nature of the modern economy necessitates the maintenance of a supply chain that
is able to adapt rapidly to shifting patterns of demand and supply. The concept of “agility” in supply chains

IT

comes into play at this point. This flexibility is being strengthened and improved in numerous ways

EL

because to the work of AI, which is the driving force behind these improvements.

Analytics Predictive: With the aid of AI, supply chains are able to anticipate changes in demand and alter
their operations appropriately. This is made possible by predictive analytics. An artificial intelligence
system is able to estimate the demand for a product by assessing historical data on product sales, current

U

market circumstances, and even public opinion as expressed on social media. This enables businesses to
make modifications to production and inventory levels in a timely manner and with perfect precision. As

SE

a result, businesses are able to reduce the possibility of having surpluses or shortages while still satisfying
the requirements of their clients.

Automation and Optimization: Artificial intelligence (AI) makes it feasible to automate and optimize
numerous phases in the supply chain, which results in a gain in both production and accuracy. This is
accomplished through automation and optimization. It may be possible to reduce time, labor, and human
error by automating order picking and packing through the use of AI in warehouse management systems,
for example. When using AI-optimized routes, both delivery times and costs may be reduced significantly.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
The supply chain is able to swiftly adapt to changing conditions as a result of the automation and
optimization of these activities.

E

Real-Time Visibility: Enhanced decision-making and more adaptability are two benefits that accrue from
the improved supply chain visibility that is made possible by the use of AI technology. With the help of

IT

Internet of Things (IoT) devices, it is possible to monitor in real time the locations of products as well as
their current statuses. Artificial intelligence systems have the potential to examine this data and provide

EL

helpful insights and precautions as a result of their findings. For example, the AI system might promptly
notify critical stakeholders if a shipment has been postponed or a product is damaged, so enabling these
individuals to take prompt corrective action.

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Management of Suppliers and hazards: Artificial intelligence is helping with both the management of
supplier relationships and the reduction of hazards in the supply chain. An AI system may monitor the

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effectiveness of suppliers, identify any issues that may arise, and help speed up the process of resolving
those issues in order to maintain healthy relationships with those suppliers. By analyzing a variety of data
sources, AI may identify supply chain risks such as political instability in a supplier’s nation or expected
price changes of vital raw materials. These risks can be avoided by implementing appropriate mitigation
strategies. When these risks are recognized in their earliest stages, companies have a higher chance of
avoiding them by adopting precautionary measures, such as moving to a different supplier or purchasing
a price-protection hedge.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
References

Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0
on the ripple effect and supply chain risk analytics. International Journal of Production

Ivanov, D., & Dolgui, A. (2019). New disruption risk management perspectives in supply chains:

IT

E

Research, 57(3), 829-846.

Digital twins, the ripple effect, and resileanness. IFAC-PapersOnLine, 52(13), 337-342.

Simonetto, M., Sgarbossa, F., Battini, D., & Govindan, K. (2022). Closed loop supply chains 4.0:

EL

From risks to benefits through advanced technologies. A literature review and research
agenda. International Journal of Production Economics, 108582.

Chae, B. K. (2015). Insights from hashtag# supplychain and Twitter Analytics: Considering

U

Twitter and Twitter data for supply chain practice and research. International Journal of
Production Economics, 165, 247-259.
Sodhi, M. S., & Tang, C. S. (2019). Research opportunities in supply chain

SE

transparency. Production and Operations Management, 28(12), 2946-2959.

Queiroz, M. M., Ivanov, D., Dolgui, A., & Fosso Wamba, S. (2022). Impacts of epidemic
outbreaks on supply chains: mapping a research agenda amid the COVID-19 pandemic through a
structured literature review. Annals of operations research, 319(1), 1159-1196.

Ivanov, D., & Dolgui, A. (2020). Viability of intertwined supply networks: extending the supply
chain resilience angles towards survivability. A position paper motivated by COVID-19
outbreak. International Journal of Production Research, 58(10), 2904-2915.

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