Did it Surprise you that logistics can be such an important component in a country’s economic system? Why or why not? Answer: No I am not surprised; Logistics is an integral factor in the success of any manufacturing company’s operations as it is a part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements. The scope of logistics management involves a multitude of different factors;

Transportation management, freight and inventory management, materials handling, and order fulfillment are just a few of the factors that must be considered when it comes to logistics management, the effective logistics management operation must lead the company to increase revenue, improve operating cost structure, reduce overall transportation costs and Improve customer service as well. 2- Due to technical problems, Toyota had recalled various models of their cars in the international market. This in return had a severe impact on their strategic and operational thinking and planning.

From a logistics management respective, describe how the logistics function can contribute to overcome Toast’s recall crisis. Recall Date: COT 17, 2013 Model Affected: 2013 Toyota campy Summary: Toyota Motor Engineering & manufacturing North America, Inc. (Toyota) is recalling certain model year 2013-2014 Campy and Campy NV, model year 2013 Valor and Valor HP and model year 2014 Corolla vehicles. In the affected vehicles, the windshield wiper switch assembly may short circuit. As such, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard, No. 04, “Windshield Wiping and Washing Systems. Consequences: A short circuit could cause inoperative windshield wipers, reducing driver visibility and increasing the risk of a crash. Remedy: Toyota will notify owners, and dealers will replace the wiper switch assembly, free of charge. The recall began on November 8, 2013. Owners may contact Toyota at 1-800-331-43311-800-331-4331. Potential Units Affected: 9795 Notes: Toyota Motor Engineering & Manufacturing Answer: We will ask the distributor for a study shows all parts needed to fix this defect and how many vehicles have been sold in the market to minimize loses as we can.

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We will place the order with the required no. Of parts and make it available at the distributors end before calling customers. We will ask the distributor to contact customers to come to service centers to check their windshield under warranty coverage. Distributor should examine the stock from the same defected model, to solve any problem before being sold. Study this defect impact on the market to find an appropriate compensation to the customer (for instance a discount on a periodic maintenance). We should have a very well trained quality control in Toast’s factories to avoid any problems in the future.

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