SERVICE CONTINGENCIE

much of the logistician's planning and control effort is direct toward running an efficient operation under normal conditions. at the same time, preparation must be made to handle those extraordinary circumstances that may shut down the system or drastically alter its operating characteristis in a short time period, such as labor strikes, fire, floods or dangerous  product defect. two common contingencies are system breakdown and product recall.

SYSTEM BREAKDOWN

• no logistics operating system will run perfectly all of all the time.
• expenditing :

1. a delay purchase order
2. handling seasonal ordering peak load
3. having redundant equipment to meet breakdowns
4. the probability of occurrence is considered lower than for events included in the regular planning process.
5. The actual occurrence of such an event would cause serious damage, especially if not dealt with quickly.
6. It deals with a subject about which the company can  plan ahead to deal with swiftly if the event occurs.

PRODUCT RECALL (REVERSE LOGISTICS)

• customer recall back the product because broken or did not functional well
• to establish a task force committee to guide the recall efforts
• pull the product back toward the manufacturer
• two product-tracing methods
• tracing method uses warranty card information