Cosco’s purchase flowchart
Cosco does not put any specific emphasis on the buyers. Instead, Cosco’s qualification review includes the supplier’s background information, their achievements, capability, and guarantee, quality assurance, and compliance history. These suppliers appear in vendors’ list, and purchasers therefore will be able to select them (Cosco Shipping Lines Co., ltd.. 2017). The vendors on the list are given a grade from A to E. The A-graders will be cooperated with closely, while E-graders will be banned in three years.
Cosco’s material requirement planning puts emphasis on ecological safety of their ships’ construction. Thus, their main objectives are energy conservation and emission reduction, which they follow when constructing new ships. To this end, Cosco has transformed the bulbous pimple of the ship, as well as adopted the hull form of their ships, high-efficiency propellers, and energy-saving devices. Cosco claims that their ships’ Energy Efficiency Design Index (EEDI) has already met the MARPOL 2025 (Cosco Shipping Lines Co., ltd.. 2019). Cosco plans to implement sulfur limit to further reduce emissions.
Flowchart for retail store (Inventory flow chart for retail store, n.d.)
Retail stores utilize simpler methodology, as they focus on the client where Cosco did not do so and focused on the trustworthiness of their vendors instead. While there appear to be more steps, each of them is much less complicated than in Cosco’s case. Retail stores employ Material Requirement Planning Methods such as “Lot for Lot, Economic Order Quantity, Period Order Quantity, Silver Meal, and Least Unit Cost” (Gozali et al., 2019, p. 1924). Period Order Quantity keeps fixed orders every period of the Economic Order Quantity according to the amount of produced or purchased goods. This helps to prevent companies from experiencing a shortage of raw materials, so that the shop may delay the orders and focus on compensating the shortage. If the customers are willing to wait for their desired goods, these methods work.
References
Cosco Shipping Lines Co., ltd.. (2017). Web.
Cosco Shipping Lines Co., ltd.. (2019). Web.
Gozali, L., Irena, F., Jap, L., and Nasution, S. R. (2019). Material Requirement Planning and Inventory Control Application Program of Crispy Retail at PT. Diva Mitra Bogatama with Application Program Based on c# Programming Language. Proceedings of the International Conference on Industrial Engineering and Operations Management Dubai (pp. 1923–1931).
Inventory flow chart for retail store. (n.d.). Web.