Service Breakdown

• No logistics operating system will run perfectly all of the time.

• None of this situations really require contingency plan since they are a normal part of business activity:
• Delayed purchase order.
• Handling seasonal ordering peak loads.
• Having redundant equipment to meet breakdown.

• The nature of event to indicate when contingency planning should undertaken:
• The probability of occurrence is considered lower than for events included in the regular process.
• The actual occurrence of such an event would cause serious damage, especially if not dealt quickly.
• It deals with subject about which the company can plan ahead to deal with swiftly if the event occurs.