importance of country’s economic system

Topics: Management, Suez Canal, Logistics Pages: 2 (386 words) Published: March 21, 2014

Q1: ) Did it surprise you that logistics can be such an important component in a country’s economic system? Why or why not?


I not surprise , according to my past experience as a material controller in LG electronics and nowadays as a purchasing member in Suez Canal Authority The Logistics has a historical relationship with the Economic system specially with GDP . before 1980 logistics didn't exceed the 10% of GDP , but this percentage has been increased yearly until 2005 , the logistics represent 45% of the GDP

This importance not only on the Macro level bit also on the Micro level , for example the private sector in china recognize that as china's labor cost advantage shifts to other countries , logistics becomes an essential component to fueling an economy that has been expanding at between 8 and 10 % per year

Q2:) 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 perspective, describe how the logistics function can contribute to overcome Toyota's recall crisis.


First of all we must define the problem that cause the recall , TOYOTA has found in 2013 That the problem is due to water leaking out from the air conditioning condenser unit into the airbag control module TOYOTA recall around 850,000 cars from the international market

To contribute the overcome recall TOYOTA must work on 2 main points: 1- The inbound logistics : this focus on the purchasing materials and input quality control ( IQC ) . the purchasing dep. Must check the supplier material to ensure that TOYOTA get best quality and best price and must make a continuous physical inspection by IQC dep. 2- The outbound logistics : Toyota has faced an unprecedented series of recalls in recent years, including a number of service actions related to so-called unintended acceleration, The...
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