47017 - Running head LOGISTICS 1 Logistics Name University...

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Running head: LOGISTICS 1 Logistics Name University
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LOGISITICS 2 Logistics 1. Describe the nature of CPDW problem
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LOGISITICS 3 Answer
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LOGISITICS 4 Determination and implementation of appropriate performance metric that would translate into financial success and indicate real financial situation of the company were the main problems for the CPDW. It is essential for a logistic service provider to appropriately determine performance metric because of associated functional complexity (Coyle, Langley, Gibson, & Novack, 2012). Current space utilization based performance metric was giving wrong picture of the overall performance and financial condition of the company. The logistics facility was completely filled with pallet-loads of glass from local glass manufacturer. The utilization of the storage space went beyond original estimates of 99, 500 square feet to 110, 000 square feet. The increased space utilization was supposed to yield increased profitability but the company could not realize expected profit. The reason for the problem is obvious. Because of the low ceiling height of the facility, the
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