Exam 2: Ch 8 Flashcards
Why logistics is critical
- impacts on cost, flexibility, and delivery performance
- advances in information systems
- globalization of markets
push toward sustainability
Truckload (TL)
move full truckloads
- solo
- team
Less-Than-Truckload (LTL)
move pallet quatities
Water travel
- ideal for materials which high weight to value ratio, especially if delivery speed is not critical
- one of the lowest ton-mile rates of any mode
- move full container quanitites
Vessel Routes
Called “strings”
Air travel
- Ideal for customers with a low weight-to-value ratio, especially if delivery speed or delivery reliability is critical
- kidneys, electronics,
- move single box quanities
Forwarders
buy space on flights and sell to suppliers to ship their goods
- middleman
LD3
1/2 WIDTH OF AIRPLANE
LD7
FULL WIDTH OF AIRPLANE
Rail travel
- decreased transit variability
- doubled number of lines along busy areas
- move full container quantities
Factors affecting transit times
Highway (truck)
- weather
- locations of crossdocks
Water
- dependent on number of ports of call
Air
- proximity of airport pickup and drop off location
Rail
- dependent on number of stops and train switches required
**all modes affected by CAPACITY
Warehousing
any operation that stores, repackages, stages, sorts, or centralizes goods or materials.
Consolidation warehousing
pulls together shipments from a number of sources in the same geographic are and combines them into larger more economical loads
Cross-docking
large economical shipments in – small flexible shipments out, breaks bulk from a single source
hub and spoke systems
facilities to sort at high traffic locations
postponement warehousing
combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment
assortment warehouses
carry a wide variety of goods close to the source of demand for longer periods in order to assure short customer lead times
spot stock warehouses
attempts to position seasonal goods close to the market place
Inventory pooling
consolidate safety stocks for individual locations into one centralized location which can provide same-day service to all the stores
Material handling system
the equipment need to move goods within facility
Implications for tranportation
- using slower and cheaper transportation modes will cause inventory levels to rise
- using faster and more expensive transportation modes will enable firms to lower inventory levels
Landed cost
the cost of product plus all costs driven by logistics activities, such as transportation, warehousing, handling, customs fees, etc.
Reverse logistics system
supply chain dedicated to the reverse flow of products and materials for returns, repair, re manufacture, and/or recycling
challenges:
- firms have less control over the timing, transportation modes used
- forward logistics systems typically arent set up to handle reverse logistics flows
