Mba Notes
Lifelong Learning Programme
Leonardo da Vinci
Chapter 2 Logistics – Basic Concepts & Characteristics
COUrier Routing through Innovative Emulation Learning program
COURIEL
Contents
1. OVERVIEW OF SUPPLY CHAIN 2. LOGISTICS DECISION MAKING 3. LOGISTICS SYSTEM DESIGN & PLANNING 4. DISTRIBUTION NETWORKS 5. TRANSPORTATION
COURIEL
2
Overview of Supply Chain
Origin of Logistics
The concept of “Logistics” started many years before Christ and was used by Greek generals (Leon the Wise, Alexander the Great) in order to describe all the procedures for the army’s procurement on food, clothing, ammunition, etc. Alexander the Great was a big fan of the mobility of his troops and he didn’t want his troops to stay in one place waiting for supplies from Macedonia. Thus, he tried to resolve the issues of supplies by using supplies from the local resources of his defeated enemies. For many years, logistics were always an issue in war affairs. Kingdoms and generals with strategic planning on logistics were those who won the war. World War II was the major motivation of logistics to increase recognition and emphasis, following the clear importance of their contribution toward the Allied victory. Starting from the early ‘60s, many factors, such as deregulation, competitive pressures, information technology, globalization, profit leverage, etc., contributed to the increase of logistics science in the form we now it today.
COURIEL
3
Overview of Supply Chain
The Scope of Logistics in Business
Logistics / Supply Chain in a business aim to the following contributions: Achieve maximum customer service level Ensure high product quality Achieve minimum (possible) cost Be flexible in the constant market changes
Logistics management tries to have the “right product”, in the “right quantity”, at the “right place”, at the “right time”, with the “right cost” Logistics management must balance 2 basic targets: Quality of Service Low Cost
COURIEL
4
Overview of Supply Chain
What is
Leonardo da Vinci
Chapter 2 Logistics – Basic Concepts & Characteristics
COUrier Routing through Innovative Emulation Learning program
COURIEL
Contents
1. OVERVIEW OF SUPPLY CHAIN 2. LOGISTICS DECISION MAKING 3. LOGISTICS SYSTEM DESIGN & PLANNING 4. DISTRIBUTION NETWORKS 5. TRANSPORTATION
COURIEL
2
Overview of Supply Chain
Origin of Logistics
The concept of “Logistics” started many years before Christ and was used by Greek generals (Leon the Wise, Alexander the Great) in order to describe all the procedures for the army’s procurement on food, clothing, ammunition, etc. Alexander the Great was a big fan of the mobility of his troops and he didn’t want his troops to stay in one place waiting for supplies from Macedonia. Thus, he tried to resolve the issues of supplies by using supplies from the local resources of his defeated enemies. For many years, logistics were always an issue in war affairs. Kingdoms and generals with strategic planning on logistics were those who won the war. World War II was the major motivation of logistics to increase recognition and emphasis, following the clear importance of their contribution toward the Allied victory. Starting from the early ‘60s, many factors, such as deregulation, competitive pressures, information technology, globalization, profit leverage, etc., contributed to the increase of logistics science in the form we now it today.
COURIEL
3
Overview of Supply Chain
The Scope of Logistics in Business
Logistics / Supply Chain in a business aim to the following contributions: Achieve maximum customer service level Ensure high product quality Achieve minimum (possible) cost Be flexible in the constant market changes
Logistics management tries to have the “right product”, in the “right quantity”, at the “right place”, at the “right time”, with the “right cost” Logistics management must balance 2 basic targets: Quality of Service Low Cost
COURIEL
4
Overview of Supply Chain
What is