All-Indian Logistics Services denotes a corporation that offers third-party logistics to firms across India. The corporation's head offices are positioned in South Delhi. The company deals with a variety of logistics activities. The firm specializes in providing logistical facilities as well as solutions. The corporation’s facilities take in exports, door-to-door collection in addition to supplies, import consolidation, along with consultancy amenities on logistics and customs. The company also offers consulting services on site selection for manufacturing companies. The American Athletic Apparel (AAA) company hired the All-Indian Logistics Services to examine and identify the best site for a prospective factory that will make wicked shirts. AAA firm required a strategic site for its industrial factory that would manufacture wicked shirts for selling in America and Europe.
Should AILS recommend that the manufacturing plant be located in Patna or Lucknow? Why?
Grounded on all the evidence from the preceding queries, I believe that AILS ought to propose positioning the AAA industrial plant in Lucknow. This is for the reason that, in Lucknow, the factory has access to the resources necessary to produce the shirts. Moreover, Lucknow is nearer the Mumbai harbor than Patna, and because the costs of transport play a vital role, shorter distances imply reduced costs, thus giving Lucknow advantages over Patna. Economical and more suitable means of transportation of the shirts for export from Lucknow than from Patna notwithstanding the transportation mode chosen. Additionally, Lucknow offers healthier living standards than Patna (Jangam et al. 2015) implying that the corporation’s staff will be better off and therefore more interested to operate in Lucknow than in Patna. Nonetheless, AILS must solely propose the firm position the factory in Patna in case the savings on costs of labor exceed the costs of transportation, and conveyance suitability in addition to the aggregated worth of contented workers thanks to healthier living conditions in Lucknow.
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Would your answer to Question 5 change if the shirts are exported through the Port of Kolkata? Why or why not?
In case the corporation chooses to export the shirts via the Kolkata Port, my response to query five might differ. The alteration in the conveyance harbor would certainly influence the costs of transportation incurred as well as the suitability of transporting the commodities to the new harbor. The length from the districts to the Kolkata Port is considerably smaller than to Mumbai harbor. Expressly, it simply takes about fourteen hours to travel through the highway between Lucknow and Kolkata, a six hundred and fifteen miles’ length. Correspondingly, it merely takes nine hours to travel between Patna and Kolkata, a three hundred and sixty miles distance (Tiwari & Sharma, 2016). Furthermore, both regions provide non-stop rail transportation facilities to Kolkata. They similarly provide direct airlifts to Kolkata, thus eliminating the additional costs in addition to the inconvenience associated with connecting flights. Additionally, Kolkata and Patna provide permanent terminuses on the National Waterway (Ramachandra, Aithal & Sowmyashree, 2014). The novel transformation enhances the transport metrics for Patna and makes it a more economical and the most convenient position to set up the AAA manufacturing factory. Mixing the subsequent economical costs of transportation and lesser costs of labor implies that the corporation will significantly lessen its costs of operation if it establishes the AAA manufacturing factory in Patna. A proportion of the savings on labor and transport may be utilized to pay workers better salaries to upsurge their disposable earnings and therefore the capability of living healthier lives similar to Lucknow.
References
Jangam, C., Sanam, S. R., Chaturvedi, M. K., Padmakar, C., Pujari, P. R., & Labhasetwar, P. K. (2015). Impact assessment of on-site sanitation system on groundwater quality in alluvial settings: a case study from Lucknow city in North India. Environmental monitoring and assessment, 187 (10), 614.
Ramachandra, T. V., Aithal, B. H., & Sowmyashree, M. V. (2014). Urban structure in Kolkata: metrics and modeling through geo-informatics. Applied Geomatics, 6 (4), 229-244.
Tiwari, R., & Sharma, N. (2016). Patna: city profile.
