Chapter 2 Flashcards
aims to treat the many different elements that come under the
broad category of distribution and logistics as one single
integrated system.
TOTAL LOGISTICS CONCEPTS (TLC)
- is a situation that involves losing one quality or aspect of something in return
for gaining another quality or aspect.
TRADE OFF
FOUR DIFFERENT LEVELS OF TRADE-OFF:
- Within distribution components
- Between distribution components
- Between company functions
- Between the company and external organization
– those trade-offs that occur within single functions. ( e.g. warehousing) One example would be the decision to use random storage locations compared to fixed storage locations in a depot. The first of these provides better storage utilization but is more difficult for picking; the second is easier for picking but does notprovide such good storage utilization
Within distribution components
– those trade-offs between the different
elements in distribution.
Between distribution components
– where a trade-off
may be beneficial for two companies that are associated with each
other.
Between the company and external organization
– a set of procedures for making decisions about the
organization’s long-term goals and strategies.
Strategic
– a set of procedures for translating broad strategic
goals and plans into specific goals and plans that are relevant to
a distinct portion of the organization, such as a functional area
like marketing.
Tactical plans focus on the major actions a unit must take
to fulfil its part of the strategic plan.
Tactical
– the process of identifying the specific
procedures and processes required at lower levels of the
organization.
Operational
– system-wide management of entire logistics
chain as a single entity, instead of separate management of
individual logistical functions.
Integrated logistic
is a technique of allocating all of the
appropriate costs and allowances to a given product. DPP techniques can identify the
costs of specific products to individual customers and so provide invaluable
information for effective marketing strategies
Direct product profitability (DPP)
distribution requirements planning
(DRP)– are systems have been developed as sophisticated, computerized planning
tools that aim to make the necessary materials or inventory available when needed.
Materials requirements planning (MRP)
is a system for calculating the materials and
components needed to manufacture a product. It consists of three primary steps:
taking inventory of the materials and components on hand, identifying which
additional ones are needed, and then scheduling their production or purchase.
Material requirements planning (MRP)
is an integrated information system used
by businesses. It evolved from earlier materials requirement planning (MRP) systems
by including the integration of additional data, such as employee and financial
needs.
Manufacturing resource planning( MRP II)
is a process of determining the right
amount of manufactured goods to be shipped to each distribution center or
warehouse in order to satisfy customer demand.
DRP- Distribution requirements planning
– originated as a new approach to manufacturing and has
been successfully applied in many industries such as the automotive industry.
Just-in-time (JIT)
is the monitoring and optimization of the production
and distribution of a company’s products and services. It seeks to improve and make all
processes involved in turning raw materials and components into final products more
efficient and getting them to the ultimate customer
Supply chain management (SCM)
5 Phases of Supply Chain Management (SCM)
- Planning
- Sourcing
- Manufacturing
- Delivery
- Returns
The objectives of JIT are vitally linked to distribution and logistics, including as
they do:
- thae production of goods the customer wants;
- the production of gods when the customer wants them;
- the production of perfect-quality goods;
- eliminating waste (labor, inventory, movement, space, etc.)
