- •What are two inventory classification systems? How do these differ? What is the purpose of such systems? How is each analysis done?
- •What is the 80-20 rule? How is it stated? What causes this to occur when looking at products?
- •What are the various costs associated with inventory? Which are largest? How are they expressed?
- •Ordering Cost
- •Carrying Cost (Holding costs) – the largest!
- •Inventory Storage Cost
- •Cost of Capital
- •4. What are reasons for holding physical supply inventory? What are reasons for holding physical distribution inventory?
- •Market penetration
- •Transportation and Physical Barriers
- •Production lead times
- •Avoid Certain Costs
- •6. What is "just-in-time" inventory management? What are the characteristics? When does it work best? How does it compare to the American system? Problems?
- •7. What are the functional types of inventory we find in a logistical system?
- •8. Trade-off Analysis: Service-Level vs. Cost
- •What is the objective of inventory management and control?
- •Inventory Management provides:
- •Meet Demand
- •Control Costs
- •Identify Opportunities
- •4 Categories of an Inventory Management Tool
- •Logistics Interfaces with Operations
- •Interface activities:
- •Explain the value-added role of logistics
- •Costs Are Significant
- •Logistics Customer Service Expectations Are Increasing
- •Supply and Distribution Lines Are Lengthening with Greater Complexity
- •Logistics/sc Is Important to Strategy
- •Logistics/sc Adds Significant Customer Value
- •12. What are the six major steps that are recommended for a logistics network design process?
- •13. Describe the four main scenarios which occur in the event of a stockout?
- •14. Explain the productivity objective to be achieved through warehouse layout and design?
- •Describe the role of transportation in logistics?
- •Creating Economic Utility
- •Market Area Decision
- •Purchasing Decisions
- •Location Decisions
- •Pricing Decisions
- •Transportation's Place in the Economy
- •Geographic specialization
- •Large-Scale Production
- •Describe some of the dimensions upon which supply chain relationships may differ?
- •17. What are the possible reasons for a company to outsource its logistics? What does this trend mean for today’s businesses?
- •18. What is the role and functions of supply chain intermediaries?
- •20. What are the reasons for logistics providers to improve and expand their businesses? In what way logistics providers of different levels differ?
- •21. How to identify what level of customer service should be offered? (consider tradeoffs)
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Describe the role of transportation in logistics?
Transportation is a very key element of the logistics process and the supply chain. It involves the movement of product, service/speed and cost which are three of the five key issues of effective logistics.
Transportation is critical to logistics and supply chain effectiveness. It impacts throughout the key issues of logistics effectiveness and the global supply chain. To meet the dynamic requirements of the supply chain, we must have a dynamic strategy. It must be responsive, both as to service and cost demands of your customers.
Freight movement has been observed to adsorb between one-third and two-thirds of total logistics costs. Thus, a logistician needs a good understanding of transportation matters.
Every business firm, regardless of what it produces or distributes, requires the movement of goods from one point to another and, therefore, is involved in transportation.
Key purposes of transportation:
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Creating Economic Utility
In economic theory terms, transportation's function is to create place utility for the goods produced or distributed by the firm. Thus, transportation is an essential part of the total production process that cannot be overlooked.
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Product Decision – the decision what product or products to produce or to distribute. The transportability of a product in terms of its physical attributes and the cost, availability, and adequacy of transportation enters into any product decision.
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Market Area Decision
This decision is affected by the transportation characteristics of the product(s) itself as well as transportation availability, adequacy and cost.
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Purchasing Decisions
What to purchase and where to purchase are also affected by transportation considerations, regardless of whether the firm is a manufacturer, wholesaler, retailer or service organization. The goods involved may be component parts, raw materials, supplies, or finished goods for resale. The transportation characteristics of the goods, the availability, adequacy and cost of transportation have a bearing on the "what and where" decision.
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Location Decisions
Although decisions relative to where plants, warehouses, offices, stores, and other business facilities should be located are influenced by many factors, transportation availability, adequacy, and cost are extremely important in such decision making. The core business of the firm will dictate the mode of transportation services required. The significance of the transportation factor varies widely from industry to industry, but transportation requirements always need to be considered in location decisions.
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Pricing Decisions
Since transportation is a critical cost factor in business operations, it can have a bearing on the pricing decisions made by business firms, especially those firms that have a cost-oriented pricing policy.
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Transportation's Place in the Economy
A good transportation network makes possibly the mobility of people for economic, educational, social, or other purposes while reducing or eliminating isolation, while promoting economic, social, and political development and economic and political unity in the country.