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) add chain tending of spare objet darts so critical for an airline business? advantageously full SCM of spare separate for an airline is really(prenominal) critical imputable to following reasons: ? Spare separate are important part of an airline as aircraft require maintenance to make certainly its precaution to fly with passengers in a long distance. A dismal maintained aircraft entrust cause accidents. Therefore good SCM is very(prenominal) critical. ? It is not simple to manage spare parts of aircrafts. Aircraft lucks were complex, high-ranking 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 regulation regarding the airplane safety. The airwave attention was regulated by international and local government much(prenominal) as the US Federal Aviation plaque (FAA). the FAA had the federal agency to ground a plane if airline operators did not work out the deferrable repairs within the stipulated timeframe.

All suppliers of aeroplane spare parts were essential to possess special legal certifications and formal protocols, which were stipulations that indicated precondition of accountability in case of an accident. Therefore, a good SCM is very critical. ? penny-pinching SCM will reduce cost. The driving force rump supply chain management (SCM) is to reduce stock. high inventory wi ll cost higher for the company as it needs ! more holding cost. ? Good SCM will avoid superfluous materials. contribute chain management is all about having the overcompensate result in the right place, at the right price, at the right time and in the right condition. Therefore planning, computer programing and control of the supply chain is so critical. 2. Explain the monetary impact of having higher inventory level of spare parts. higher(prenominal) inventory level...If you want to get a full essay, guild it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.