Lecture Logistics management: Lecture 8 - Dr. Khurrum S. Mughal

pptx
Số trang Lecture Logistics management: Lecture 8 - Dr. Khurrum S. Mughal 19 Cỡ tệp Lecture Logistics management: Lecture 8 - Dr. Khurrum S. Mughal 126 KB Lượt tải Lecture Logistics management: Lecture 8 - Dr. Khurrum S. Mughal 0 Lượt đọc Lecture Logistics management: Lecture 8 - Dr. Khurrum S. Mughal 64
Đánh giá Lecture Logistics management: Lecture 8 - Dr. Khurrum S. Mughal
4 ( 13 lượt)
Nhấn vào bên dưới để tải tài liệu
Để tải xuống xem đầy đủ hãy nhấn vào bên trên
Chủ đề liên quan

Nội dung

Logistics Management LSM 730 Lecture 8 Dr. Khurrum S. Mughal 1-1 Logistics/Supply Chain Strategy and Planning “If you don’t know where you want to go, any path will do.” 2-2 Six Concepts for Logistics Strategy Formulation • Total Cost Concept – Tradeoff conflicting costs at optimum • Differentiated distribution – Not all products should be provided the same level of customer service • Mixed strategy – A pure strategy has higher costs than a mixed strategy • Postponement – Delay formation of the final product as long as possible • Shipment consolidation – Smaller shipment sizes have disproportionately higher transportation costs than larger ones • Product standardization – Avoid product variety since it adds to inventory 1-3 Six Concepts for Logistics Strategy Formulation • Total Cost Concept – Tradeoff analysis – Tradeoff conflicting costs at optimum – Examples: • Direct cost of Transport Service vs Indirect cost of inventory levels 1-4 Cost, in dollars A Cost Conflict in Logistics Total cost Cost of transportation service Inventory cost (includes storage and intransit Rail Truck Air Transportation service (greater speed and dependability) 2-5 Six Concepts for Logistics Strategy Formulation • Total Cost Concept – Tradeoff analysis – Tradeoff conflicting costs at optimum – Examples: • Higher level of customer service resulting in less lost sales Vs • Cost of inventories, transportation and order processing 1-6 A Cost Conflict in Logistics 2-7 Six Concepts for Logistics Strategy Formulation • Total Cost Concept – Tradeoff analysis – Tradeoff conflicting costs at optimum – Examples: • When customers purchase in small quantities and inventory is replenished in large quantities • Out Bound inventory transport cost exceeds inbound transport costs • Deciding on number of stocking points considering – Inventory vs transportations costs Vs – Customer service level 1-8 A Cost Conflict in Logistics 2-9 Six Concepts for Logistics Strategy Formulation • Total Cost Concept – Tradeoff analysis – Tradeoff conflicting costs at optimum – Examples: • At higher level of customer satisfaction – Cost of lost sales vs Inventory Carrying Costs 1-10 A Cost Conflict in Logistics 2-11 Six Concepts for Logistics Strategy Formulation • Total Cost Concept – Tradeoff analysis – Tradeoff conflicting costs at optimum – Examples: • In case of Multi-product scheduling • Increase in Inventory costs with change in production sequence 1-12 A Cost Conflict in Logistics 2-13 Six Concepts for Logistics Strategy Formulation • Total Cost Concept – Tradeoff conflicting costs at optimum • Application – Manufacturer of Marine Products • Warehouse in St. Louis Vs Chicago to minimize transport cost • Different results when inventory costs were considered 1-14 Six Concepts for Logistics Strategy Formulation • Differentiated distribution – Not all products should be provided the same level of customer service • Products to be delivered directly to customers Vs delivered from warehouses – Customer ordering in high volumes might be served directly – Fast Moving Items in field warehouses, medium in fewer regional locations, slow moving items in centralized locations – Application: Chemical company manufacturing metal coating products for preventing corrosion • Truck loads and top 10 percent of total volume shipped directly • Remainder from two warehouses and plant • Saved 20% of total distribution costs 1-15 Six Concepts for Logistics Strategy Formulation • Mixed strategy – A pure strategy has higher costs than a mixed strategy – Administrative ease in pure strategy along with economies of scale – When products differ in cube, weight, order size, sales volume, and customer service level – Application • Retailer of prescription drugs with six ware houses • New facility to support Pittsburgh Warehouse costing $7 Million 1-16 Pure vs. Mixed Strategy Cost Current strategy All private Suggested strategy Combined private-public All public Warehouse alternatives 2-17 Six Concepts for Logistics Strategy Formulation • Postponement – Delay formation of the final product as long as possible – Avoid shipping of goods in anticipation of when demand will occur (time postponement) – Avoid creating the form of the product in anticipation of that form (form postponement) 1-18 Six Concepts for Logistics Strategy Formulation • Postponement – Application • JCPenny by filling orders on demand from relatively few warehouses • Dell computers practices Form postponement • Sherwin-Williams has variety of paint colors but practices form postponement 1-19
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.