SCM Flashnotes Study Guide Julian Heller Logistics Much more then transportation choices It is the management of inventory at various locations The process itself is considered Value Added Step The product has value only when costumers can access it Logistics is the last step in providing the customer with value Bridges the gap between demand and supply Logistics interfaces with Manufacturing Length of Production Runs less finished goods inventory ships more frequently results in higher logistics cost Slide is unclear Push Vs Pull Manufacturing Push higher inventory cost and less logistics cost Seasonal Demand inventory holding costs vary Logistics with Marketing Price must conform to with your shipment sizes Product Promotion Sales with seasonal demands such as school supplies affect inventory Place Channel of distribution selecting the route your products will travel Sell Business to Customer Business to Business Both Finance and Accounting Inventory will affect Income Statement Balance Sheet etc Cost Drivers Transportation largest single cost in a firm s logistics system Warehouse holding of inventory Inventory determining of how much to order largest fixed cost Packaging design of package Production Inventory Planning looks out for constraints in Inventory holding Procurement Envision Supply Chain A simplistic model in the notes Inbound Logistics Physical Supply Materials Management and Outbound Logistics Physical Distribution Material Mgmt Vs Physical Distribution Heavy Inbound Lots of upstream members in the supply chain Inbound what Heavy Outbound Once processed converted into hundreds of products oil is coming to me Cargo Transportation They are standardized to be a certain dimension can be stacked on each other Tradeoff Analysis Ex Ship by rail or truck A cost analysis is an appropriate thing to do whenever you are trying to decide between alternatives Cost is not the only consideration
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