Physical Distribution Flashcards
Definition
Outgoing logistics
Forward movement of products
defined network of transport links so delivery is fast and cost effective
Components of physical distribution
Order processing Inventory management Materials handling Warehousing Transport
Order processing
Receiving, processing orders and transmitting sales
Verify credibility
Check for outstanding payments
Prepare invoices
Send consignment and info
Inventory management
Build and maintain enough stock for customer demand
Re order formula
Order lead time x usage rate +buffer stock
JIT Needs
Reliable suppliers
Close communication
Attention to quality
Adequate storage and transport
Materials handling
Max convenience and min damage
Warehousing
Design and operation facilities for storing and moving goods
Warehousing functions
receive goods and assume responsibility Record quantities Sorting goods Hold goods in storage Collect for shipment Check dispatched orders for completeness
Warehouse decisions
Type
Layout
Number
Location
Transportation
Road Rail Waterways Air Pipeline
Transport selection depends on
Product nature Affordability Availability Customer specifications Competitors transport mode
