M2S3 Flashcards
Globalization and Integration:
complexity provides some significant implications for logistics operations (6)
- extended supply lead times
- production postponed with local added value
- complicated node management
- multiple freight transport option
- extended and unreliable transit times
- the need for greater visibility in the supply chain.
the development in logistics and distribution systems is the concept of total logistics to have more integrated operations.
Integrated system
The major reason for this explosion of new ideas is two fold.
- first is realization of importance, cost and complexity of logistics
- is the progress made in field of information technology.
is a technique of allocating all of the appropriate cost and allowances to a given product.
DPP (Direct product profitability)
All distribution costs (storage, transport, etc) are therefore assigned to a specific product rather than taking an average over a whole product range
DPP (DIRECT PRODUCT PROFITABILITY)
A budgetary system operates, the actual costs of distributing a product are monitored and compared to a standard cost determined using DPP. In this way, areas of inefficiency throughout the whole logistics operation can be identified.
DPP (DIRECT PRODUCT PROFITABILITY)
is an inventory control technique for determining
dependent demand for manufacturing supply.
MRP (MATERIAL REQUIREMENT PLANNING)
was developed with the objective of improving productivity through the detailed planning and control of production resources.
MRPII (MANUFACTURING RESOURCE PLANNING)
is a application MRPII techniques to the management of inventory and material flow - effective warehousing and transportation support.
DRP (DISTRIBUTION REQUIREMENT PLANNING)
Operate by breaking down the flow of material from the source of supply through the distribution network of depots and transportation modes.
DRP systems
This approach to manufacturing and has been successfully applied in many industries such as the
automotive industry.
JIT
It has significant implications for distribution and logistics.
JIT
It provides a production system that eliminates all activities that neither add value to the final product nor allow for the continuous flow of material – in simple terms, that eliminates the costly and wasteful elements within a production process
JIT
The OBJECTIVES of JIT are vitally linked to distribution and logistics, including as they do:
- the production of goods the customer wants
- the production of goods when the customer wants them
- the production of perfect-quality goods
- the elimination of waste
associated with the movement and storage of goods, it is now recognized that distribution and logistics also provide a very positive contribution to the value of a product.
Cost
