Logistic: Inventory and Total Logistics Cost
Logistics October 28, 2008
The articled uploaded are very good and should be read. The lecture does not follow the format of the book but the book is easy to read and forms a background to the course.
Preferred definition: (what is logistics? why are we studying logistics)
Slide Logistics/concept 3
In the definition, every word counts. Key words underlined. Logistics is a process – continually doing it, not just once. You plan, implement and control. It includes a planning function, something that you have to plan and based on this plan you implement. And the implementation itself has to be controlled so the planning, implementation and control techniques are logistics techniques. So we have to do all these things. Logistics is to plan, implement those plan and control. Plan implement and control what? The flow - two key words, flow and storage. Not only flow. This is the difference between logistics and transportation - transportation is moving cargo from A to B. Logistics is not only flow but storage as well. Stop, go, stop, go. From where to where? Point of origin to point of consumption. This extends the conventional concept of maritime. Maritime is port to port. Port need not be an origin or a destination. It is only so for maritime transport. The point of consumption is the cargo’s origin - Where it started from - the beginning and where the cargo ends - to it consumption means - end of its journey. More extended coverage than maritime transport itself. Flow and storage of what? – goods, but also services and information. From point of origin to point of consumption. Based on what standard? Based on customer requirement. For the purpose of conforming to customers requirement. What is customer requirement? How is it defined? What is its effect on the flow and storage, the planning and implementing and controlling – these are all very key concepts. Qu. what are some examples Ans. Shipping itself. How do you bring the service to the customers? Shipping
The articled uploaded are very good and should be read. The lecture does not follow the format of the book but the book is easy to read and forms a background to the course.
Preferred definition: (what is logistics? why are we studying logistics)
Slide Logistics/concept 3
In the definition, every word counts. Key words underlined. Logistics is a process – continually doing it, not just once. You plan, implement and control. It includes a planning function, something that you have to plan and based on this plan you implement. And the implementation itself has to be controlled so the planning, implementation and control techniques are logistics techniques. So we have to do all these things. Logistics is to plan, implement those plan and control. Plan implement and control what? The flow - two key words, flow and storage. Not only flow. This is the difference between logistics and transportation - transportation is moving cargo from A to B. Logistics is not only flow but storage as well. Stop, go, stop, go. From where to where? Point of origin to point of consumption. This extends the conventional concept of maritime. Maritime is port to port. Port need not be an origin or a destination. It is only so for maritime transport. The point of consumption is the cargo’s origin - Where it started from - the beginning and where the cargo ends - to it consumption means - end of its journey. More extended coverage than maritime transport itself. Flow and storage of what? – goods, but also services and information. From point of origin to point of consumption. Based on what standard? Based on customer requirement. For the purpose of conforming to customers requirement. What is customer requirement? How is it defined? What is its effect on the flow and storage, the planning and implementing and controlling – these are all very key concepts. Qu. what are some examples Ans. Shipping itself. How do you bring the service to the customers? Shipping