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2007ЛогистикаЧасть2.doc
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  1. Mark the statements as true or false.

1. A product’s life cycle consists of 5 sages.

2. Sales volume declines as a result of technological stage.

3. A firm’s different products are typically in the same stages of their life cycles.

4. A logistician cannot anticipate distribution needs.

5. The growth stage is usually very long.

  1. Fill in the suitable words from the list (control, distribution, availability, logistician, cycle, strategy, stocking, deployment).

Many ________________ points are used with good ________________ over product _________________ throughout the marketplace. To maintain efficient ________________, patterns of product movement and inventory _________________ may have to be adjusted. The product life ________________ phenomenon has an influence on distribution __________________. It allows the ______________ to anticipate distribution needs.

4) Make word combinations.

1. life

a) locations

2. distribution

b) change

3. market

c) availability

4. product

d) acceptance

5. managerial

e) area

6. centralized

f) points

7. stocking

g) judgment

8. technological

h) cycle

9. sales

i) strategy

10. geographic

j) volume

Part 3. Product Characteristics.

The most important characteristics of the product that influence logistics strategy are the attributes of the product itself – weight, volume, value, perishability, flammability, and substitutability. When observed in various combinations, these characteristics are an indication of the need for warehousing, inventories, transportation, materials handling, and order processing. These attributes can best be discussed in four categories: weight-bulk ratio, value-weight ratio, substitutability, and risk characteristics.

1.Weight-Bulk Ratio

The ratio of product weight to bulk (volume) is a particularly meaningful measure, as transportation and storage costs are directly related to them. Products that are dense, that is, have a high weight-bulk ratio (e.g., rolled steel, printed mate­rials, and canned foods), show good utilization of transportation equipment and storage facilities, with the costs of both tending to be low. However, for products with low density (e.g., inflated beach balls, boats, potato chips, and lamp shades), the bulk capacity of transportation equipment is fully utilized before the weight-carry­ing limit is reached. Also, the handling and space costs, which are weight-based, tend to be high relative to the product's sales price.

As the product density increases, both storage and transportation costs decline as a percentage of the sales price. Although price may also be reduced by lower storage and transportation costs, they are just two cost factors among many that make up price. Therefore, total logistics costs can decline faster than price.