Final answer:
Improving efficiency and effectiveness in order picking and assembly can be achieved through just-in-time delivery, leveraging economies of scale, and optimizing production technology and scale.
Step-by-step explanation:
One method for improving efficiency and effectiveness in the order picking and assembly stage is adopting a just-in-time delivery system.
This approach, made popular by Japanese car manufacturers in the 1980s, involves having parts delivered as they are needed in the assembly process, reducing the need for storing large quantities of inventory. This can result in better quality control and cost reductions.
Moreover, strategically placing factories near suppliers and transport networks can lower transportation costs and increase production efficiency.
Another method is leveraging economies of scale, which implies that as production output increases, the cost per unit decreases. This principle can be applied by increasing the scale of production for savings in cost.
Also, companies can assess the least costly production technology, potentially leading to a shift towards more mechanization for tasks, thereby reducing labor costs and increasing efficiency.
Additionally, optimizing the scale of production can help in determining the most cost-effective quantity of output, eventually leading to significant cost savings.
By focusing on warehouse efficiency, firms can use technology and scale to their advantage for more cost-effective operations.