tentaplugg Flashcards
L1. What are the key components of distribution and logistics? (hela bilden)
- Storage, warehousing and materials handling
* Location of warehouses
* number and site of distribution depots
* type of storage
* materials handling equipment. - Packaging and unitization
* unit load
* protective packaging
* handling systems. - Inventory
* what/where to stock
* how much to stock - Transport
* mode of transport
* type of delivery operation
* load planning
* route schedule - Information and control
* design of systems
* Control procedures
* forecasting
L1. Planning Horizons (Hela bilden)
- Strategic
* medium-to-long-term horizon
* 1-5 year time span
* Structural decisions
* Trade-offs btw company functions
* Trade-offs with other organizations
* Corporate financial plans and policies
* Policy decisions developed into a strategic plan - Tactical
* Short to medium-term horizon
*6-12 months planning
* Subsystem decisions are made
* Annual budgets
* A strategic plan detail - Operational
* day-to-day decision making
* operations controlled against the standards and rules
* Control via weekly/monthly reports
* Implementation of the operational plan
L.1 What are the three functions of different planning time horizons?
Strategic
Tactical
Operational
L1. Strategic planning?
- medium-to-long-term horizon
- 1-5 year time span
- Structural decisions
- Trade-offs btw company functions
- Trade-offs with other organizations
- Corporate financial plans and policies
- Policy decisions developed into a strategic plan
L1. Tactical planning?
- Short to medium-term horizon
*6-12 months planning - Subsystem decisions are made
- Annual budgets
- A strategic plan detail
L.1. Operational planning?
- day-to-day decision making
- operations controlled against the standards and rules
- Control via weekly/monthly reports
- Implementation of the operational plan
L.1. What are the key components of distribution and logistics?
- Storage, warehousing and materials handling
- Packaging and unionization
- Inventory
- Transport
- Information and control
L.1. What is included in 1. storage, warehousing and materials handling? (key components)
- Location of warehouses
- number and site of distribution depots
- type of storage
- materials handling equipment.
L.1. What is included in 2. Packaging and unitization? (key components)
- Packaging and unitization
* unit load
* protective packaging
* handling systems.
L1. What is included in 3. Inventory (key components)
- Inventory
* what/where to stock
* how much to stock
L.1 What is included in 4. Transport (key components)
- Transport
* mode of transport
* type of delivery operation
* load planning
* route schedule
L1. What is included in 5. Information and control? (Key components)
- Information and control
* design of systems
* Control procedures
* forecasting
L1.The seven “rights” of customer service
CPCPCTQ
Customer
Product
Cost
Place
Condition
Time
Quantity
L1. Customer service strategy
- Identify the main elements of service and identify market segments
- Determine the relative significance of each service element
- Establish company competitiveness at current service levels offered
*Identify distinct service requirements for different market segments
- Develop specific customer service package
- Determine monitoring and control procedures
L1. The planning and control cycle
- Feedback - where are we now?
- Objectives - where do we want to be?
- Planning - How are we going to get there?
- Monitoring - how do we know when we have arrived?
L2. Value of more efficient transportation - a consumer perspective.
More efficient freight transports –> Decreased transport costs. –> Economies of scale and scope –> increased competitive pressure –> decreased landed cost –> decreased consumer prices.
L2/KC. Transportation impacts the environment in a number of ways, please explain which and how?
- Emissions/GHG -
,* Several modes of transport such as road transportation, shipping and air freight transportation
cause different emissions by burning fuels. This adds to the greenhouse effect which
increases climate change. Road transportation has a particularly high emission rate in relation
to cargo volume.
To draw a broader picture, also the construction of infrastructure needs to be taken into
account which causes huge emissions as well (life cycle analysis). - Land use
,* infrastructure is needed in order to transport goods and passengers.
Transportation requires a huge space and with a constantly growing demand, land is used to
build roads, railways, terminals, logistic centers. Soils are getting closed which leads to that
water can not reach the underground any more which again affects the ecosystem’s balance
negatively. Also, natural habitats of animals are moved. - Noise
, * All modes of transport cause noise. Engines, the rolling on asphalt surfaces as well as the
operation of different machines in order to lift goods are loud. This impacts the ecosphere
since many animals are noise sensitive and therefore are moving from their natural habitats
which imbalances the whole system. It also has a negative impact on attractiveness for people
residing in close proximity to for instance an airport or motor highway) - Visibility
,* Transportation is not invisible. Wherever goods or passengers are transported, it is visible not
just by the means of transport itself but also by their infrastructure needed (e.g., roads,
bridges, railways, terminals, ports…). Shortly, transportation has a massive impact on the
landscape and urban infrastructure. In terms of attractiveness to reside but also in relation to
several ecologic factors, it is a careful tradeoff to be made between transportation and other
needs and preferences. - Vibration
,* As with noise, vibration is caused by the movement of heavy goods. This applies in particular
to road and rail transportation whereas road is more sensitive to heavy goods. The rolling of
wheels paired with heavy freights are leading to small movements of the ground which in the
long term can lead to changes in the soil structure which is dangerous for both the ecosphere
as well as the infrastructure since it increases risks for earth movement - Pollutions
- Air quality (health)
- Safety (hazardous material)
- Accidents
L2. Demand for transportation - Trends
- Freight:
,* globalization
, * Specialization
, * Outsourcing (3pl)
People
, Mobility
, * Work
, *Pleasure (low cost traveling over long distances)
L2. Service components of freight demand?
- Transit time
- Reliability
- Accessibility (frequency etc)
- Capability
- Security
L2. What is the EU strategy for sustainability?
- Revitalize the railways and other alternatives to road haulage.
- Get freight traffic to switch from
roads to alternative transport forms,
especially rail, but also short-sea and
inland waterways. - Encourage travellers to go by rail
rather than by air for short journeys
(under 400 kilometres). - Promote alternatives that combine
transport modes for both passenger
and freight traffic. - In Trans-European Network projects,
concentrate on removing major
cross-border bottlenecks, particularly
in the rail sector, like Alpine crossings
or passages through the Pyrenees. - Make users of transport systems pay
more directly for the infrastructure
and facilities they use. - Reduce pollution and the sources of
pollution, and increase safety and
security.
L2. What is Galileo?
- 30 satellites orbiting at an altitude of nearly 24 000
kilometres. Ground stations will be responsible for
management and control.
*10 Billion EUR
- Operational from now-2018
- Track and Trace (meter precision)
- Alternative/cooperation with GPS and Glonass. Non
military
Precision : In a combined GPS-Galileo use (compared to GPS by itself) the higher number of satellites available to the user will offer higher precision. From most locations, six to eight Galileo satellites will be visible which, in combination with GPS signals, will allow positions to
be determined up to within a few centimetres.
Availability : The high number of satellites will also improve the availability of the signals in high-rise cities, where buildings can obstruct signals from satellites that are low on the horizon.
Coverage: Galileo will also provide a better coverage at high latitudes than GPS, thanks to the location and inclination of the satellites. This will be particularly interesting for Northern Europe.
L.3 Why should we regulate?
- To get fairer distribution of benefits among groups
,* Equity = benefits distributed fairly among various stakeholders. E.g regulations on pricing and access can precent monopolistic practices and ensure that transportation services remain affordable and accessible to all.
,* Social welfare = by regulation transportation, governments can consider the broader social welfare implications. E.g regulations can encourage the use of public transportation or promote the dev of infrastructure in underserved areas.
- For efficiency reasons
,* Resource allocation = reg help optimize allocation of resources within the transportation sector. They set standards for veichle maintenance and fuel efficiency, which can reduce waste.
,* Congestion management = traffic management rules help prevent traffic congestion –> time and fuel savings, reduced emissions and predictable delivery times.
,* Intermodal efficiency = regulations can promote the seamless movement of goods across different modes of transport. This intermodal efficiency can reduce delays and costs of transferring cargo between modes.
- For safety reasons.
,* Human safety = regulations can minimize accidents and injuries.
,* Cargo Safety = labeling hazardous materials, reducing risk of accidents or environmental damage.
,* Security = safety regulations can protect transportation systems from terrorism and criminal activities.
L.2 What are the difference btw green and white papers?
Green papers are discussion papers published by the commission for a specific policy area.
White papers are documents containing proposals for community action for a specific area.
L2. What do you need to think of when choosing the right transport modal?
- Operational factors
* External factors - infrastructure, trade barriers, law & tax, communications systems, economic conditions, culture.
* Customer characteristics - SLA and requirements
* Physical nature of the product - volume to weight, special charecteristics, substitutability
* Other logistics components - supply points, warehouses, marketing plans, existing delivery system. - Transportation mode characteristics
Air, Road, Rails, Sea, Container/intermodal - Consignment factors
* Routing (avoid some countries?)
* Distance
* Type of cargo
* Quantity, unit load and volume - Cost and service requirements
* Size and distance
* Speed of delivery and service reliability.
These factors are used for choosing the right mode of transport.
L.2 Pros and cons with ROAD
+ felxible
+ Last mile delivery
- congestion
-emissions
- Safety/accidents
- Can’t be used as well for bulk/heavy/large cargo
+/- high variable cost
L2. Pros and cons with RAIL
+ Heavy transport
+ Energy efficent
+ Automated
+ Safe
+ comparably low transit times
+ high volumes can be transported
- Centre to centre (dependent on other modes of transport)
- No last mile
+ Double handling (lastbil på tåg, container direkt från hamn)
L2. Pros and cons with Sea/Inland waterways
+energy efficient
+ cheap (in comparison to the large amount that can be shipped)
+ long distance
- slow (long lead-times)
- dangerous (piracy)
- Safety (problem of alcohol abuse)
-overbooking
- need for infrastructure and ports/coast/inland waterways
- very sensitive to whether conditions (ice, flood drought conditions)
L2. Pors and cons with AIR
+ fast
+ good for high value goods
+ good for long distances in short time
+ short transit times
- high emissions
- packing standards (no containers)
-expensive
- accessability (no last mile)
L3. What are the costs of transportation?
- Internal costs
* Infrastructure cost
* Private cost
,’ fuel, maintenance, repairs, insurance, taxes, dep - External costs (costs borne by others than those generating them)
* Environmental costs
,* energy
,* Pollution
,* landscape
,* Vibration
* Noise
* Congestions
* Accidents
*Land use
L3. SCM - What flows are in supply chain?
Financial flow
Physical flow
Information flow
MGM. Advantages of navigable channels?
Reliability, energy efficency and a competitive alternative to road and rail.
MGM. What are the main challenges of inland waterways?
- Climate change
Global warming effect: Extreme meteorological situations –> navigation difficulties + cost increase.
Canals: increase in sea level
Navigable rivers: drying up or severe floods. - Dam’s construction: To precent floods or as a source of energy –> reduction of river flows.
MGM: Inland waterways Europe - Rhine
”Europe has more than 37,000 km of waterways.
Some 21 out of 28 countries have inland waterways
and 13 of which have an interconnected waterway
networks.
The European Commission aims to “promote and
strengthen the competitive position of inland
waterways in the transport system, and to facilitate
its integration into the intermodal logistics chain.”
Additionally, the European Federation of Inland
Ports (EFIP): 200 inland ports in 16 countries of the
European Union, Switzerland and Ukraine.
Main problem: climate change.
Main challenge: drying up / floods.
MGM. What are the main advantages with canals?
- Reduce travel distance and time (more efficient and competitive)
- Decrease transport costs and emissions
MGM. Panama canal
The ancon ship became the first ship to officially pass through the canal. French hade unsuccessfully built a canal (1880-1889). Then America helped Panama win their independence from Colombia and constructed the canal. Length 64km.
Main purpose: reduce time and distance from the Atlantic to the Pacific.
The increase of traffic: risk of congestion and new vessels. The Panama Canal authority has a project to improve the canal’s capacity and double the capacity with a new lane AND allow larger ships to transit.
Problems: Draughts due to climate change (low water levels)
MGM. What are motorways of the sea? MOS?
Motorways of the Sea (MoS) is the maritime pillar of the TEN-T. It consists of short-sea routes, ports, associated maritime infrastructures, equipment, facilities and relevant administrative formalities. MoS contributes towards the achievement of a European Maritime Transport Space without barriers, connecting Core Network Corridors by integrating maritime links with hinterland. In doing so, it aims at providing more efficient, commercially viable and sustainable alternatives to road-only transport. MoS has a dual effect:
It improves access to markets throughout Europe
It reduces the strain upon already over-stretched European road systems
MGM. What are the 5 navigable rivers?
Nile - Egypt
Yangtze - china
Europe - Rhine
Amazonia - Brazil
Missisippi - Missouri
MGM: Problems with Nile and Yangtze?
- Dam infrastructure –> reduction of river flows
MGM: Problem with Rhine?
drying up/floods
MGM: What is the problem with Amazonias?
Bad infrastructure
MGM: Problems with the Mississippi River?
Drying up/floods
KC. Four categories of bulk cargo?
- Liquid Bulk This requires transportation by a tanker and includes cargoes such as crude oil, oil products, wine, beer, liquefied gas etc.
- Major Bulks Iron ore, coal, grain, phosphate and alumina/bauxite.
- Minor Bulks The other commodities that travel in bulk such as steel, cement, gypsum, forest products etc.
- Specialized Bulk This includes bulk commodities that require particular forms of handling or storage. For example, cars and reefer cargoes.
KC. With surplus capacity in the market, freight rates will fall:
- To improve profit margins or minimise losses, slow steaming to conserve bunker fuel. Thus, the supply of shipping capacity falls to match the existing level of demand.
- The least efficient ships will no longer be able to cover operating costs and so will be moved into lay-up.
- With declining demand, secondhand prices of ships fall in line with the freight rates. Eventually, they fall below the level at which it is economic to scrap the ships. In the long-term, this reduces the supply of shipping and the overcapacity that exists in the market.
- At the same time, falling secondhand prices generally reduces the financing costs for purchasers of secondhand tonnage, which means that there is less pressure on ensuring high levels of productivi
KC. The supply of shipping?
Freight rates are determined by the balance between supply and demand. Whenever there is excess demand, freight rates will rise. In response, shipowners will increase the supply of shipping by:
- Improving the operating efficiency of the existing fleet. Ships operate at full speed, routine maintenance will be reduced and turnround times will be speeded up (helped by cargoes being readily available).
- Should the rise in freight rates justify it, shipowners will bring ships out of lay-up. There are fixed costs associated with this which must be paid for and freight rates will have to be significantly higher because these ships are older and more inefficient.
- Generally increasing freight rates makes it viable to order new ships at higher prices, thus increasing long-term supply to meet the increasing demand.
KC. The northern sea route NSR
Climate models project summer sea ice in the arctic basin will retreat further and further away from most arctic landmasses. New shipping routes will open, extending the navigation season in the NSR by 2-4 months. Previously frozen areas in the arctic may therefore become seasonally or permanently navigable.
KC. What do we learn from the IMO?
- carries 90%+ of world trade
- underpins the global economy and is essential for
sustainable development - is safe and secure
- is the most environmentally- friendly and fuel-efficient
of all modes of transport
KC. Motivation for unilateral action?
- Directly profitable: greater fuel efficiency reduces costs. A win-win green-gold solution.
- Revenue generation: possible trade-off between cost increase and ill-defined ‘green image benefits’ (Maersk)
What types of unilateral actions are there?
- technical
- operational
kc. What alternative fuels/energy sources? (Technical)
Technical
* improved fuel consumption - hull and engines. (remove microorganisms to improve fuel consumtions i.e.
* More efficient propellers and rudders
Alternative fuels/energy sources
Bio fuel - capacity and ethics. Bio-diesel supplement. Price (more expensive). Supply problems - cars.
Methanol - Stena Germanica ferry (expensive fuel)
Nuclear power - military vessels. Regulation. Crew compentence (they would have different training). Waste - what do you do with the waste.
Gas (LNG) Auxiliary engines. Will be limited to short sea shipping/ferries. Carrying capacity. Large reserves (advantage). These are the ones preferred from carriers/ship owners.
Fuel cells - upstream inefficiencies (manufacturing the cells lead to emissions, using the fuels cells does not lead to emissions)
Wind and solar - supplementary on selected routes. (there is a massive fixed cost associated with taking up the sail.)
Shore power -”cold ironing) - electric, would work in sweden were electric supply is environmental but would perhpas not work anywhere in the world. Problem with world-wide integration, the solution demands investments from ship owners as well.
What are the operational unilateral actions?
Energy optimal fleet operation
Vessel speed reduction
Improved routing & less waiting
Enchanted fleet management
IMO Regulation 1?
April 2008, IMO’s MEPC agree sulphur emission caps as
follows:
* A reduction to 3.50% (35,000 ppm) effective 1 January 2012
* A reduction to 0.50% (5,000 ppm) effective 1 January 2020
but subject to a review to be completed no later than 2018
* If this review is negative, the effective date defaults to 1
January 2025
IMO Regulation 2
Specific ‘Sulphur Emission Control Areas’ (SECAs) have
been defined - English Channel, Baltic Sea and North Sea
where:
* A reduction to 1.00% (10,000 ppm) effective 1 March 2010
* A reduction to 0.10% (1,000 ppm) effective 1 January 2015
Regulation 3
When adopting the IMO regulations, the EU had varied the regulations by committing to 2020 as the date it would apply the ’global’ sulphur regulations.
October 2016, IMO decides on global Sulphur cap in 2020
October 2016, IMO makes Baltic and North Seas ECAs (with Tier III NOx regulations) as from January 1st 2021.
