Föreläsning 3 Flashcards
Name some activites associated with logistics
- Customer Service: customer service is important to the firm
- Order Processing: the firms central nervous system (orderentry, scheduling, tracking, collecting money……
- Distribution communications: effective communication is vital
- Inventory control: financially impacts the firm
- Demand: management and planning
- Traffic and Transportation: mode, regulations, routing
- Warehousing and Storage: Products must be stored
- Plant and warehouse site selection: Where?
- Material Handling: movement and flow of …
- Procurement: where to get it from?
- Parts and Service Support: after sales service
- Packaging: Dual role (Marketing, Transport + Information)
- Salvage and Scrap disposal and Reverse Logistics: waste disposal and reverse logistics
What is Customer Service?
The role of customer service it to provide time and place utility!
What are the fundamental elements of costumer service?
- Availability
- fill rates
- stockout frequency
- orders shipped complete
- Operational performance
- speed
-consistency
-flexibility
-malfunction recovery - Service reliability
-damage free
-error-free invoices
-shipment matches orders
-shipped to corrrect location
For example, Federal Express introduced real-timetracking of shipment status. In response UPS and otherparcel delivery firms added this service to their platform
What is Order Processing?
the firms central nervous system. Has to do with:order entry, scheduling,tracking, collecting money……
* Emphasis on Accuracy
* Work Balancing
* Forecasting and Communication
Why is distribution communication important?
effective communication is vital. Bullwhip effect: when demand signals get distoreted as a result of the different steps in a supply chain. Inventories become increasing larger looking back through the supply chain
Why is inventory control important?
financially impacts the firm
Why Hold Inventory?
Economies of scale
- Purchasing advantages
– Transportation advantages
– Manufacturing advantages
Balancing supply and demand
– Seasonality/Speculative
– Maintaining supply sources
Buffering against uncertainty
– Uncertainty in demand
– Uncertainty in supply
what is demand management?
Demand management describes the various tools and procedures that enable a more effective balance between supply and demand through an understanding of the possible uncertainties
Demand Planning is a translation of what is required in a market (orders) into a fulfilment program
describe independant vs dependant management
Independent demand – end user of the supply chain/consumer demand(e.g., consumer demand for breakfast cereal)
*Demand is unrelated to the demand for other items
* Demand is forecasted
Dependent demand – demand for a product depends on demand ofanother product (e.g., demand for cereal boxes depends on the demandfor cereal)
* Demand for components that are used in the final product (e.g., bill-of materials)
* Demand can be derived/planned if the independent demand forecast is known
Name some reasons for warehousing
– Demand / supply / lead time uncertainty
– Manufacturing economies: production smoothing
– Transportation economies: volume discounts
– Customer service support
What are some benefits of Warehousing
Service Benefits – operational strategy to add valuewithin the supply chain process
Economic Benefits – operational strategy to save moneyby using a storage point
What are functional tradeoffs
How to best balance customerservice and costs.
Warehouse
Transportation
Inventory
Customer service
What are facility level tradeoffs
How to best balance financial and performance.
Space
Equipment
People
How do you determine the number of facilities?
Determining the number of facilities needed for a supply chain involves the evaluation of cost tradeoffs with other functional areas.
How do you select location effectively?
Effective location selection requires analysis of the DC’s intended function, sources and volume of supply, customer locations and demand patterns, and related fulfillment costs.
