Statistical control in reverse logistics Research Paper

Statistical control in reverse logistics - Research Paper Example It is a common phenomenon especially in the motor industry. For instance in 2009, General Motors recalled approximately one million vehicles from showrooms and consumers due to defects in their braking system. Statistical control plays a role in reverse logistics by ensuring process of recalling goods back to a manufacturer is conducted quantitatively to avoid financial losses to a manufacturer. Several parameters are considered before reverse logistics can be actualized, statistical control serve to moderate the said parameters to ensure that the process is conducted in a controlled manner that will be to the advantage of the organization financially. Some group view reverse logistics as an important aspect of the supply chain while other do not. Statistical control applies its measure in the situation by depicting the advantages that will be gained by successfully implementing reverse control for instance if a company is responsible for all its inventory returns chances are it will retain consumer loyalty and at the same time protect the brand of the product in question. Conversely, whenever decisions are being made on whether to return a product or not various considerations should be explored before a final decision can be done. Statistical control is applied to provide the analysis of the trade-off thus making informed decision concerning reverse logistics (Keller, 201 1). Before an organization can make, a decision on reverse logistics various considerations have to be explored to ensure the decision is viable financially to the firm at the same time it is also beneficial to the customers (Dyckhoff, Fandel and Reese, 2004). Whenever a product is being recalled it is, of course, not in its original condition, it may be worn out or damaged. Reverse logistics will be viable to a product of high quality, since the cost of transporting the product back to the manufacturer can be met

Homework Essay Example | Topics and Well Written Essays - 2000 words

Homework - Essay Example For example an advertisement made in contrast of black and white may be eye catching and affects perceptual selection. Expectations Consumer’s expectations also affect how things are perceived by consumer. Consumers generally see what they expect to see. A person expecting to see some particular shop in a shopping mall will soon find out one than the one in no expectation to see that shop. Motives Perceptual selection is also influenced by consumer’s motives at that time, consumer’s current needs and desires affect the stimulus selection for perception. A consumer planning to have a vacation will be more open to resorts’ advertisements, airlines deals and hotels’ offers. These are the two major factors that affect selection of perceptual stimuli. FACTORS AFFECTING NATURE OF PERCETION Exposure Attention Interpretation Exposure Exposure highlights the stimulus to which a consumer is exposed to. Exposure can be either deliberate or random. Selective ex posure is deliberate, it happens when consumers seek out for messages that are pleasant and avoid the ones that are painful. Attention Attention explains out of all exposed stimulus, on which stimulus does the consumer pay concentration on. The attention paid by the consumer can be categorized as either of high involvement or of low involvement. The extent to which a consumer pay attention to particular stimulus is affected by a consumer’s needs interests and motives at that time. A person who is price conscious may pay attention to saver deals advertisements and on discount offers. Interpretation Interpretation defines the assignment of meaning to sensations. Interpretation of stimuli is also uniquely individual process. It is different for every person as each person perceives and interprets stimuli differently and uniquely. Attention Attention occurs when any stimulus is able to activate one or more sensory receptor nerves, and the sensation produced as a result of it, goe s to the brain for further processing. Attention requires consumers to allocate limited mental processing towards information processing. There are multiple stimulus and situational factors that affect on which stimuli consumers pay attention to. Stimulus factors Stimulus factors mostly include physical characteristics and nature of stimulus. Size and Intensity – any stimulus that is huge or giant in size will automatically catch attention of a person. Intensity may include the length, brightness or loudness of the stimulus. Color and Movement – the more colorful a stimulus is, the greater it has the chances to catch an individual’s attention. In addition to being colorful, if stimulus is mobile rather than stagnant, it has greater probability of attracting individual’s attention. A bright colored package is more likely to attract attention. Position – placement of the object in a person’s visual field. Mostly stimuli placed at prime locatio n, or at eye level or somewhere that is much unexpected for an individual to expect that stimulus to be. The greater it will attract the attention. Isolation –