.
Qualification
Pearson BTEC Level 7 Extended Diploma in Strategic Management and Leadership
Center Name Center Registration No
ABChorizon BTEC 91667
Student name Student Registration No
AHMAD MOHAMMED ALSHAIBAH
Assessor name Unit No/Name
Mr. Samer Hamdoo Choose an item.
Assignment number and title Credit Value
Strategic supply chain management unit - Mar - 2020
15
Issue date Submission date Submitted on
Student Declaration
Student signature: Date:
Page 1 of 13
content
Aims of the topic....................................................................................................................3
Introduction...........................................................................................................................3
WHAT IS SUPPLY CHAIN MANAGEMENT STRATEGY?......................................................3
Product Development:.....................................................................................................................4
Customers:.......................................................................................................................................4
Manufacturing:................................................................................................................................4
Suppliers:.........................................................................................................................................4
The relationship between supply chain management (SCM) and organizational business
objectives................................................................................................................................5
The importance of effective supply chain management in achieving organizational objectives..........5
The key drivers for achieving an integrated supply chain strategy in an organization. . .5
The use information technology to optimize supplier relationships in an organization...7
Evaluate the effectiveness of strategies used by an organization to maintain supplier relationships....7
The use of information technology to create strategies to develop an organization's relationship with
its suppliers...........................................................................................................................................7
Development of systems to maintain an organization’s relationship with its suppliers........................7
The role of information technology in supply chain management.....................................8
Assess how information technology could assist integration of different parts of the supply chain of
an organization.....................................................................................................................................8
how information technology has contributed to the management of the supply chain of an
organization..........................................................................................................................................9
Assess the effectiveness of information technology in managing the supply chain of an
organization...........................................................................................................................9
The role of logistics and procurement in supply chain management.................................9
Evaluate procurement practices in an organization............................................................................10
factors that must be considered when improving logistics and procurement practices in an
organization........................................................................................................................................11
planning a strategy to improve an organization's supply chain.......................................11
Plan a strategy to improve an organization's supply chain.................................................................11
how a supply chain improvement strategy will benefit overall business performance in an
organization........................................................................................................................................12
how barriers will be overcome in an organization when implementing a supply chain
improvement strategy.........................................................................................................12
Page 2 of 13
Aims of the topic
Giving a straightforward build of destinations and methodologies inside gracefully chains
has become increasingly more significant throughout the most recent decades particularly
in profoundly associated supply chain structures,. Be that as it may, practically speaking
there is a striking need inserting gracefully chain methodologies inside organization's
structures. Subsequently, the reason for this report is to build up a for the most part
relevant strategy to set up a vital concentration over the organization's supply chain (SC)
exercises that simultaneously underpins a divine being fit with encompassing worth system
conditions.
Introduction
Supply chain the executives works at three levels; key, strategic and operational. At the key
level, organization the board settles on elevated level key supply chain choices that are
pertinent to entire association. The choices that are made with respect to the supply chain
ought to mirror the general corporate methodology that the association is following. The key
gracefully chain forms that administration needs to settle on will cover the expansiveness of
the gracefully chain. These incorporate item improvement, clients, assembling, sellers and
coordination.
WHAT IS SUPPLY CHAIN MANAGEMENT STRATEGY?
Supply chain the board (SCM) includes the development of items and administrations from
providers to merchants. SCM includes the progression of data and items between and among
gracefully bind stages to boost productivity. The significant capacities engaged with SCM
are the obtainment of crude materials, item improvement, showcasing, tasks, dispersion,
money, and client administrations. Clients are an essential piece of SCM. The target of
gracefully system or SCM is to augment the general worth. Worth is related to supply chain
productivity. Here, benefit is the distinction between the all out income created from the
client and the general supply chain costs.
Methodologies and planning of the supply chain include:
Settling on the gracefully chain structure and the exercises each phase of the supply
chain will perform.
Choosing an area and limits of office.
Settling on the items that are to be made and the area where they should be put away.
Picking the methods of transportation and the source from where the data is to be
gathered.
Supply chain researchers have concurred that a supply chain procedure ought to be picked
based on the sort of item and by coordinating the technique to the remarkable qualities of
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various items or markets (Fisher, 1997; Lee, 2002; Sebastiao and Golicic, 2008). Moreover,
a gracefully chain technique must be coordinated with training, in light of the fact that a
confuse by and large prompts issues in the supply chain (Fisher, 1997; Christopher and
Towill, 2000). In any case, notwithstanding the very much perceived significance of
investigation into supply chain system, there are constrained exact examinations in creating
economies, particularly South Africa. A large portion of the investigations on supply chain
techniques are situated in Western and profoundly created nations (Qi, Boyer, and Zhao,
2009, p. 668). While these investigations have opened discussion and conversation on
gracefully chain techniques, creating new bits of knowledge into Fisher's (1997) model, there
stays a need to give observational proof of supply chain methodologies in creating
economies. Despite the fact that gracefully chain the executives (SCM) is a notable idea in
South Africa and in the car business specifically, there is restricted examination into supply
chain methodology.
Product Development:
Senior Management needs to characterize a vital course while considering the items that the
organization should fabricate and offer to their clients. As item cycles develop or items deals
decay, the executives needs to settle on key choices to create and present new forms of
existing items into the commercial center, support the current item offering or whether build
up another scope of items and administrations. These vital choices may incorporate the need
to get another organization or sell existing organizations. Be that as it may, when settling on
these key item improvement choices, the general destinations of the firm ought to be the
deciding element.
Customers:
At the key level, an organization needs to recognize the clients for its items and
administrations. At the point when organization the executives settles on vital choices on the
items to fabricate, they have to then distinguish the key client sections where organization
showcasing and promoting will be focused on.
Manufacturing:
At the vital level, producing choices characterize the assembling foundation and innovation
that is required. In view of significant level anticipating and deals assesses, the organization
the board needs to settle on vital choices on how items will be made. The choices can require
new assembling offices to be manufactured or to build creation at existing offices. Be that as
it may, in the event that the general organization goals incorporate moving assembling
abroad, at that point the choices may lean towards utilizing subcontracting and outsider
coordinations. As ecological issues impact corporate arrangement indeed, this may impact
vital gracefully affix choices concerning fabricating.
Suppliers:
Organization executives need to settle on the key gracefully tie arrangements with respect to
providers. Diminishing the buying spend for an organization can legitimately identify with
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an expansion in benefit and deliberately there are various choices that can be made to acquire
that outcome. Utilizing the complete organization's buys over numerous organizations can
permit organization the board to choose key worldwide providers who offer the best limits.
Be that as it may, these choices need to compare with the general organization goals. On the
off chance that an organization has embraced approaches on quality, at that point key choices
on providers should fall inside the general organization objective.
The relationship between supply
chain management (SCM) and
organizational business objectives
The importance of effective supply chain management in achieving
organizational objectives
In the antiquated Greek tale about the turtle and the bunny, the quick and careless hare
nodded off at work, while the "gradual" turtle won the race. That may have been valid in
Aesop's time, however in the present requesting business condition, "gradual" won't get you
out of the beginning entryway, not to mention win any races. Supervisors nowadays perceive
that getting items to clients quicker than the opposition will improve an organization's
serious position. To stay serious, organizations must look for new answers for significant
Supply Chain Management issues, for example, modular investigation, supply chain the
executives, load arranging, course arranging and conveyance arrange structure.
Organizations must face corporate difficulties that effect Supply Chain Management, for
example, reengineering globalization and redistributing. For what reason is it so significant
for organizations to get items to their clients rapidly? Quicker item accessibility is critical to
expanding deals, says R. Michael Donovan of Natick, Mass., an administration advisor spend
significant time in assembling and data frameworks. "There's a significant benefit advantage
for the additional time that you are in the market and your rival isn't," he says. "On the off
chance that you can be there first, you are probably going to get more requests and more
piece of the overall industry." The capacity to convey an item quicker likewise can represent
the deciding moment a deal. "On the off chance that two option [products] have all the
earmarks of being equivalent and one is promptly accessible and the other will be accessible
in seven days, which would you pick? Obviously, "Gracefully Chain Management has a
significant task to carry out in moving merchandise all the more rapidly to their goal".
Explain the link between supply chain management and business functions in an
organization
Williams et al. (2002) expressed authoritative advancement would drive the progressions of
the entire hierarchical structure and that of representatives, which further influences the
activity of the entire gracefully chain. The expanding prerequisites for the participation and
the association among purchasers and providers would make solid impacts the authoritative
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development (Lee, 1995). Atuahene-Gime (1996 a/b) likewise expressed that supply chain
the board chiefly focuses on the bit of leeway and nature of the item advancement. With
respect to support industry, the upsides of advancement in both help and quality are
dependent upon a decent gracefully chain the executives. Athaide et al. (1996) said that in
the procedure of both item development and strategy advancement, the gracefully. The sort
of the corporate culture influences the chance of the individual advancement and the
authoritative development. The bureaucratic culture controls the individual advancement and
the enterprises' capacity to make any change against rivalry. The strong culture is least
demanding to energize the individual advancement, and can likewise satisfy enterprises to
change for improving their capabilities. The successful culture can empower the individual
development. Be that as it may, its over the top accentuation on results will welcome on the
opposite clashes among staff, and turns into a major block for the authoritative change.
Hurley and Hut (1998) said that an association would give more assets to energize more
advancement and create abilities if its way of life stresses development.
The key drivers for achieving an
integrated supply chain strategy in
an organization
As organizations progressively utilize their supply chain to contend and pick up piece of the
pie, spending and action around there are strikingly on the rise. Innovation and procedure
updates at ground breaking organizations unmistakably show that gracefully chain greatness
is all the more broadly acknowledged as a component of by and large business system and
that expanding an incentive to clients isn't simply management's, however everybody's
business. The move in how organizations see their supply chain is grabbing hold. Look at
how your organization sees its gracefully chain and think about your responses to these
essential inquiries. Does initiative view your supply chain as a key upper hand? If not, would
you say you are thinking about re-appropriating your gracefully chain? Are the limit qualities
of your supply chain generally known and comprehended by administration of the
organization? Assuming this is the case, how would they sway development, benefit and
client care?
Hitachi Consulting works intimately with driving assembling and conveyance organizations
and encourages them address their business challenges. From our experience working with
key organizations in food and drink, purchaser items, innovative and modern assembling,
there are six key patterns making critical effect and change supply chain structure and
execution:
1. Demand arranging
2. Globalization
3. Increased rivalry and cost pressures
4. Outsourcing
5. Shortened and progressively complex item life cycles
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6. Closer incorporation and cooperation with providers
The use information technology to
optimize supplier relationships in an
organization
The effectiveness of strategies used by an organization to maintain
supplier relationships
Viable administration of providers is one of the manners in which assembling organizations
can improve their presentation. There are a few significant parts of provider the executives,
they incorporate sourcing methodologies, the manner in which connections are the board and
the data trade approaches embraced by producers. Commonly, it has been contended in the
writing that cozy associations with providers ought to be created, rather than the customary
cost driven value-based relationship. Related to this methodology makers should utilize a
solitary sourcing procedure as opposed to multi-sourcing. This paper presents the aftereffects
of an examination (utilizing an overview) of provider the executives rehearses among
German assembling organizations. The exploration found that noteworthy segment of the
organizations studied had encountered an adjustment in their relationship with providers over
the most recent couple of years. In the primary connections had gotten nearer and the
utilization of organizations was in proof. In spite of the fact that the organizations had
created associations with a portion of their providers most of firms kept on inclining toward a
multi-sourcing strategy. The exploration results have suggestions for German assembling
organizations as they show the potential for development through the more prominent
appropriation of best practices in the region of provider the board.
The use of information technology to create strategies to develop an
organization's relationship with its suppliers
As search costs and other coordination costs decrease, hypothesis predicts that organizations
ought to ideally build the quantity of providers with which they work together. Regardless of
ongoing decreases in these expenses because of data innovation, there is little proof of an
expansion in the quantity of providers utilized. In actuality, in numerous enterprises, firms
are working with less providers. This recommends different powers must be represented in a
progressively complete model of purchaser provider connections. As firms attempt to build
their exhibition, the interface with providers has become a significant purpose of
accentuation in the journey for extra efficiencies. This point is getting a charge out of
expanding prominence, particularly taking into account the distinctions in client provider
connections among Japanese and American firms. For example, better provider relations
have been assessed than give a $300-600 for each vehicle cost bit of leeway to Japanese
makers. These patterns are reflected in the data innovation (IT) writing also, which has
distinguished the effect of IT on provider connections as a significant territory for research,
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and has talked about these connections in an institutional financial aspects system tending to
the ramifications of firm size and the administration structure of the relationship.
Development of systems to maintain an organization’s relationship with
its suppliers
A characteristic way to deal with deciding the ideal number of providers is to begin from the
presumption that a firm would profit by expanding the quantity of its providers, in this way
widening its decision, yet that innovative contemplations compel this system. In this
viewpoint, the quantity of providers is constrained by contemplations, for example, the
expense of setting up a relationship, search expenses, and exchange costs, which can for the
most part be summed up as coordination costs. For instance, in attempting to decide the ideal
number of providers for a given information, it might be accepted that providers' item
contributions are fill in for each other, then again, actually they vary in some attractive
component, for example, value, fit, or item qualities. Cooperating with every provider
involves a coordination cost. Subsequent to looking over some number of providers, the
purchaser chooses the item offering that gives the best an incentive as indicated by its
arrangement of rules. The ideal number of providers is dictated by exchanging off the
expense of further pursuits against the normal profit by distinguishing a superior provider.
To represent these exchange offs, in this segment we offer a model for the ideal number of
providers in the neoclassical custom of Stigler (1951). For instance, Consider a two-period
setting with a purchaser firm and N hazard impartial expected providers with
indistinguishable creation innovation confronting the equivalent peripheral cost, thought to
be zero. Provider contributions contrast in an item trademark, which, without loss of
consensus, is thought to be one-dimensional, giving to the purchaser firm utility e
disseminated in the stretch [0,1] as per a realized thickness work fe; e can be thought of as a
"fit" pointer. Providers' e can be found simply after a relationship has been built up between
the purchaser firm and the comparing provider. The purchaser firm faces an irreversible cost
K for every provider it works with, which can be thought of as a coordination cost. In the
main time frame, the purchaser firm chooses n providers from the N accessible providers as
the providers it will work with. In the subsequent period, the purchaser finds the estimations
of the fit boundaries for example for the providers and buys from the provider whose
offering gives the "best match" (i.e., the most elevated e).
The role of information technology
in supply chain management
How information technology could assist integration of different parts of
the supply chain of an organization
Today organizations are regularly not thought about free elements, yet parts of multi-
organization, multi-echelon systems, for example flexibly chains, conveying products and
enterprises to the last client (Christopher, 1992; Lambert and Cooper, 2000). Gracefully
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chain the board (SCM) writing suggests that coordinated control of these multi-organization
systems can give noteworthy advantages (for example Cooper et al., 1997; Burgess, 1998; de
Leeuw et al., 1999; Mason-Jones and Towill, 1999; Norek and Pohlen, 2001). The usage of
data innovation (IT), thus, is viewed as a basic prerequisite for dealing with these systems,
and has been related with critical gracefully chain productivity upgrades (for example Lee
and Billington, 1992; White and Pearson, 2001).
how information technology has contributed to the management of the
supply chain of an organization
Supply chain management (SCM) is concerned with the flow of products and information
between supply chain members' organizations. Recent development in technologies enables
the organization to avail information easily in their premises. These technologies are helpful
to coordinates the activities to manage the supply chain. The cost of information is decreased
due to the increasing rate of technologies. In the integrated supply chain model (Fig.1) bi-
directional arrow reflect the accommodation of reverse materials and information feedback
flows. Manager needs to understand that information technology is more than just
computers. Except computer data recognition equipment, communication technologies,
factory automation and other hardware and services are included. Bi-directional arrow
reflects the accommodation of reverse materials and information feedback flows.Managers
need to understand that information technology is more than just computers. Except
computer, data recognition equipment, communication technologies, factory automation and
other hardware and services are included.
Assess the effectiveness of information technology in managing the supply chain of an
organization
Preceding 1980s the data stream between practical regions inside an association and between
gracefully chain individuals associations were paper based. The paper based exchange and
correspondence is moderate. During this period, data was regularly over looked as a basic
serious asset since its incentive to supply chain individuals was not obviously comprehended.
IT foundation capacities give a serious situating of business activities like process duration
decrease, usage, executing overhauled cross-utilitarian procedures. A few understand firms
associated with supply chain relationship through data innovation. Three components have
firmly affected this adjustment in the significance of data. Initially, fulfilling in truth
satisfying client has become something of a corporate fixation. Serving the client in the best,
generally productive and viable way has gotten basic. Second data is a urgent factor in the
directors' capacities to decrease stock and human asset necessity to a serious level. Data
streams assumes a pivotal job in vital arranging.
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The role of logistics and
procurement in supply chain
management
The role of logistics in supply chain management in an organization
Both coordination and gracefully chain the board are significant and energizing territories
that touch our lives. Simply envision the various items that are purchased and devoured by us
consistently. How would they arrive at the client and at what cost? In antiquated occasions,
universal exchange was commanded by massive crude materials. Today, in-process and
completed items (not crude materials) assume a more prominent job in world exchange.
Attributable to accumulating of stock and conveying cost, emergency clinics and processing
plants have set up in frameworks to capture pointless buys. Coordination the executives is
that piece of SCM that plans, actualizes and controls the proficient, powerful, forward and
invert stream and capacity of products, benefits and related data between the purpose of
birthplace and the purpose of utilization so as to meet client prerequisite. Coordination
includes getting in the correct manner, the correct item, in the correct amount and right
quality, in the ideal spot at the perfect time, for the correct client at the correct expense.
Getting a portion of these 'Rs' right might be simple for some, however getting all right can
be a significant test. For instance, in both retail appropriation and in high-esteem fabricating,
it is currently very basic to offer providers very explicit and restricted time windows inside
which to convey cargo.
Evaluate procurement practices in an organization
Today, buying must be the most dynamic gathering in the organization. Your frameworks,
strategies, and operational speculations must be adaptable and dynamic. The run of the mill
theory of ―We have done it that path for a long time, so it must be good,‖ or, ―We bring in
cash notwithstanding ourselves!‖ doesn't have any significant bearing in present day
acquisition rehearses. Overall serious weights require more prominent commitment from the
buying and gracefully the board capacities, acquisition practices and providers to improve
the association's relative situation on quality, value, innovation, and responsiveness—that
doesn't mean lounging around and sitting tight for it to occur!
Here are some intriguing general perceptions dependent on ongoing buying examinations:
Each day, purchasers burn through countless dollars which can represent somewhere
in the range of 20-70% of an association's income, spending plan, or deals dollar.
An examination of installments has demonstrated that, in many organizations, 50-
60% of the quantities of checks to merchants are of installments of under $500.
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These installments frequently speak to under 5% of the yearly material
consumptions. The installments under $1,000 speak to the distributions and roughly
10% of the dollars.
factors that must be considered when improving logistics and
procurement practices in an organization
Obtainment is a key movement in the flexibly chain. It can altogether impact the general
achievement of a crisis reaction relying upon how it is overseen. In helpful gracefully chains,
acquirement speaks to an extremely huge extent of the all out spend and ought to be overseen
successfully to accomplish ideal worth. Acquirement works like a rotate in the inner
gracefully chain process pivoting demands into real items/products or administrations to
satisfy the requirements. It serves three degrees of clients:
1. The inside client.
2. Projects because of crises and progressing programs.
3. Prepositioning of stocks, for both inside clients and program needs.
In a joint effort with the distribution center capacity, items/products are assembled and
conveyed.
planning a strategy to improve an
organization's supply chain
Plan a strategy to improve an organization's supply chain
This system (as is appeared in outline) was created utilizing a multi-layered methodology.
The Department united topic specialists from part organizations and divisions including the
USCG, CBP, TSA, DHS Policy, Science and Technology, Domestic Nuclear Detection
Office, Grants and Training, and Preparedness to make an underlying draft of the procedure.
This draft was then exposed to a broad survey process including inner staff over the
Department, interagency audits with non-DHS organizations, conference with the private
segment through warning councils, including: the National Maritime Security Advisory
Committee and the Commercial Operations Advisory Committee, and interview with global
exchange accomplices, primarily chose by volume of exchange with the United States (e.g.,
APEC). After a last round of remedies, considering the proposals and solicitations of the
analysts and specialists, the technique subject to a conventional survey by DHS parts and
submitted for formal Department audit.
Page 11 of 13
how a supply chain improvement strategy will benefit overall business
performance in an organization
It helps in the following ways:
1. Improved Supply: Chain Network: Supply chain management software provides
complete, 360-degree visibility across the entire supply chain network. It allows users to
monitor the status of all activities across all suppliers, production plants, storage facilities,
and distribution centers.
2. Minimized Delays: Many supply chains – particularly those that haven’t been enhanced
with a supply chain application – are plagued by delays that can result in poor relationships
and lost business. With SCM software, all activities can be seamlessly coordinated and
executed from start to finish, ensuring much higher levels of on-time delivery across the
board.
3. Enhanced Collaboration: This type of instantaneous, unhindered communication and
data-sharing will help keep all key stakeholders informed, so that supply chain processes can
run as smoothly as possible.
4. Reduced Costs: Supply Chain Management software can help reduce overhead expenses
in a variety of ways.
how barriers will be overcome in an
organization when implementing a
supply chain improvement strategy
Organizations need compelling apparatuses for gracefully chain the executives. The supply
chain is characteristically is regularly flighty and consistently unique, and ineffectual
gracefully chain the board implies helpless business execution and a lower main concern.
Ordinary programming answers for the supply chain the executives issue have demonstrated
modestly viable, yet they have been not able to render information obvious, sensible and
available. The IBM Cognos SCPM arrangement gives an incorporated programming
application that empowers gracefully tie administrators to recognize and cure issues viably
and productively, keeping data sorted out and within reach. Organizations can utilize the
IBM Cognos SCPM answer for interface flexibly bind information to other venture
applications, including money, HR, CRM, and outside information. Along these lines, IBM
Cognos SCPM not just improves the exhibition of a gracefully chain, it coordinates a whole
organization into a solitary wellspring of crucial data, adequately expanding execution,
however the benefit of existing IT assets. Representatives all through the association can get
to IBM Cognos SCPM for exact and current information expected to work together on issues
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and settle on better business choices. The advantages of IBM Cognos SCPM accordingly
become those of the whole association es.
Item Development: Senior Management needs to characterize a vital course while
considering the items that the organization should fabricate and offer to their clients. As item
cycles develop or items deals decay, the executives needs to settle on vital choices to create
and present new forms of existing items into the commercial center, excuse the current item
offering or whether build up another scope of items and administrations. These key choices
may incorporate the need to secure another organization or sell existing organizations. In any
case, when settling on these vital item improvement choices, the general targets of the firm
ought to be the deciding component. Clients: At the vital level, an organization needs to
distinguish the clients for its items and administrations. At the point when organization the
executives settles on vital choices on the items to produce, they have to then recognize the
key client fragments where organization promoting and publicizing will be focused on.
Assembling: At the vital level, producing choices characterize the assembling framework
and innovation that is required. In view of significant level determining and deals appraises,
the organization the executives needs to settle on vital choices on how items will be
produced. The choices can require new assembling offices to be constructed or to build
creation at existing offices. Notwithstanding, in the event that the general organization
destinations incorporate moving assembling abroad, at that point the choices may lean
towards utilizing subcontracting and outsider coordinations. As ecological issues impact
corporate arrangement indeed, this may impact vital gracefully tie choices with respect to
assembling. Providers: Company the board needs to choose the vital flexibly tie approaches
concerning providers. Diminishing the buying spend for an organization can legitimately
identify with an expansion in benefit and deliberately there are various choices that can be
made to get that outcome. Utilizing the all out organization's buys over numerous
organizations can permit organization the board to choose key worldwide providers who
offer the best limits. Be that as it may, these choices need to relate with the general
organization destinations. On the off chance that an organization has embraced arrangements
on quality, at that point vital choices on providers should fall inside the general organization
objective.
Page 13 of 13
