Ch. 1,2,3,4,5,6,8 by ZD95
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Logistics: Principles and practice
1. Logistics subsystems
1.1 Introduction to logistics
Organizations often face problems caused either by:
-Suppliers:
-Delivering goods late
-Delivering wrong goods
-Delivering shipment to wrong address
-Providing bad service after goods have arrived
-Own fault:
-Bad lay-out in warehouse
-Inventory fails to correspond with its administration
-Machines kept idle because they lack raw materials
-Clients:
-Complaining about missing goods on delivery
-Refusing to pay, because order has been delivered incomplete
Logistics:
-Wide field of activity, practical discipline
-All problems related to managing flow of goods
-Often identified most closely with trade and transport
-Internal flow of goods to travel smoothly from supplier to customer at lowest possible cost
-Prime concern: customer service
History
Dictionary of military logistics:
“All preparations and actions required to provide troops with goods and supplies in most efficient manner to have them fighting under most favourable circumstances.”
Other definition:
“The art of moving, quartering and supplying troops.”
Quartering=providing shelter or ‘lodging’ ->derives from French word logis->logistics
Logistics means more than just looking after flow of goods
Now:
-Encompasses movement of both goods and information
-Flow of money is an essential component
Effectiveness most vital to military, no expense or effort spared to ensure it
Initially business community didn’t see how they could apply military logistics to commerce
->Involved in world wars->became more or less forced to start using logistic process
->Took years before