Fundamentals Flashcards
What are the main categories of functional activities?
- transport (transfer of objects in space)
- transshipment/handling (modifcation of the order of objects)
- storage (transfer of objects in time)
- packing
⇒ A logistics system consists of facilities, in which one or more functional activities are carried out
What stands the shortcut CDC and RDC for
central distribution system
regional distribution center
Logistic activities involve costs
⇒ value of the product increases
How is value added?
spatial (distribution)
temporal (storage)
What is a formal way of representing logistics systems?
Directed multigraphs
G = (V, A):
V: set of facilities, e.g., production sites, customers, depots,
airports, train stations, . . .
A: set of connections between the facilities, e.g., ow of
materials, transportation requests, fow of information
Name the characteristics of a multigraph
- several arcs between a pair of facilities possible
- representation of alternative forms of transport services, different routes, or different products
Characteristics of Supply logistics:
- before production
- management of raw materials, materials and component parts
supply
Characteristics of Internal logistics:
- in production plants
- receiving and storing materials, transport from warehouse to
production lines, packaging and storing the semi-finished and
finished products
Characteristics of Distribution logistics:
- after production, before market
- supply of sales points or customers
Characteristics of External logistics:
supply logistics and distribution logistics
Characteristics of Primary logistics activities:
storage and distribution of finished
products
Characteristics of typical flow of materials in logistics networks
- suppliers → processing and assembly plants
→ sales points → customers - Exceptions: recycling of product wrapping, return of defective
components or products - Integrated with information fow in the opposite direction:
Make to Order logistics systems: customers’ orders →
production plan → demand for materials and components
Make to Stock logistics systems: market information (demand
recorded in the past, results of possible market surveys etc.)
→ mode of distribution → production plan → supply plan
Handling of growing complexity in logistics systems
Grouping of products into classes of different importance
- Approach:
- -> ABC-Analysis
- -> 80-20 Pareto principle
Which measures can be used to characterize objectives of logistics?
Costs, profits, and service level
profits and service Level
- Logistics activities affect company profits
- Service level: overall degree of customer satisfaction
Measures of service Level 1
Order-cycle time: time interval from the issuing of an order to the delivery of the product
Components:
- order processing time
- availability check
- assembly time
- shipping time
What are the different parts of Management of Logistics Planning
Process of planning, organizing and controlling the logistics
system
- planning: taking the best decisions possible
-organizing the human resources directly involved in logistics
activities - control: measuring the performance
What steps does Planning involve and which difficulties are there?
Planning is the goal-oriented mental anticipation of future actions,
and involves:
- recognizing and analyzing the decision problem
- defining objectives
- forecasting future developments
- identifying and evaluating feasible alternatives (solutions)
- selecting one (good) solution
Main difficulties:
- conflicting goals
- enormous amount of possible alternatives and interdependencies
- uncertainty
What are the decision making areas of planning
- forecasting,
- supply,
- distribution,
- storage,
- and location
Characteristics of strategic decisions
- long-term effect (more than a year)
- involve major financial investments
- unlikely to be reversible in the short term
- based on forecasts relative to aggregated data
- responsibility of top management
Characteristics of tactical decisions
- medium-term effect (year, season or month)
- refer to the use of available resources
- usually based on forecasts
- derived from results of strategic planning
- often rough demand and capacity planning considering
seasonal effects
Characteristics of operational decisions
-short-term effect (week or day)
- detailed plans for the execution of activities respecting the
frame conditions
- concrete, non-aggregated planning objects
- data from the surrounding environment and results of forecasts
Name the four types of analystics
- Descriptive (What happened)
- Diagnostic (Why did it happen)
- Predictive (What will happen)
- Prescriptive (What should I do)
Principle of parsimony:
as detailed as necessary and as simple
as possible
- simplification too strong: not feasible and/or not optimal in
reality - too detailed (more dangerous in practice): eort to model and
solve, availability of data - validation: suitability and correctness of steps of optimization
process
Black box / white box validation
- black box validation: systematic investigation of behavior
using small/well-researched instances - white box validation: inner workings of the code
