Logistics Final Chap 1 Logistics overview Economic utility how useful the product is to you the customer 4 parts to that Possession utility how easy is it for the customer to get the object ie Automotive leases do make it easier etc Form utility generally associated with production it s like how logistics is responsible for making soda into a 6 pack or something that the customer wants to buy size wise Place utility getting the shit where it needs to be Time utility getting the shit on time definition of logistics plans implements forward and reverse flow and storage of goods services between point of origin and point of consumption in order to meet customers requirements Mass logistics doesn t work bc customers have different needs thus there is tailored logistics Humanitarian logistics is logistics for non profit Disintermediation is removing a middle man logistics has become more important bc of the rise of woman in the work force and single parent homes there a greater need for convenience systems approach is recognizing how each aspect needs a separate but equal focus marketing production finance and logistics Total cost approach is coordinating materials management and physical distribution in a cost efficient manner Meaning all relevant logistical activities are considered as a whole And the use of trade offs like how a decrease in transportation costs would cause an increase in warehousing costs Finance and Logistics overlap finance dudes allocate costs towards certain equipment and they also do it with inventory Production overlap these guys are concerned with inventory carrying costs there is also use of the postponement concept aka the delay of value added activities like assembly and packaging till the last possible time Marketing overlap marketing has a big part with customer satisfaction the four Ps of marketing Place Price Product and Promotion Landed costs mean the price of a product plus transportation costs Stockout is being out of an item when there is currently demand for it Marketing channels refer to a set of institutions that move the good where they need to be There is the ownership channel negotiating channel financing channel promotions channel and logistics channel only one that matters to us the sorting function which is sorting out accumulating then allocating then assorting Chap 7 Demand management order management and customer service How they figure out what the customer wants AND how they get it to the customer Demand management is coordinated flow of demand across a supply chain Demand forecasting models Judgmental forecasting using judgment to predict no data used Time series forecasting basing future demand on past demand Cause and effect aka associative forecasting basically just says there s many factors to consider Order Management activities with the order cycle refers to the time when a customer places an order to the time the order is received Order cash to cash cycle is the same just incorporates when they get money Order transmittal the time a customer places an order to the time the seller receives the order Order processing the time from when the seller receives an order until an appropriate location is authorized to fill the order Order triage is picking who gets served first ORDER picking and assembly can account for 2 3 of the facilitys operating cost and time Order delivery the final phase the transportation of the shit Customer Service 4 dimensions which are time dependability communication and convenience Chap 8 Inventory Management Inventory classifications First is cycle or base stock the inventory that is the same and covers base demand the example with eggs 12 and 1 per day Safety or buffer stock refers to inventory that is held in addition to cycle stock to account for uncertainty demand Pipeline or in transit stock refers to the inventory that is en route Speculative stock inventory held for projective increases in demand ex Is easter egg stock Inventory carrying costs the cost to hold something Inventory shrinkage refers to more shit coming in the leaving This is bc of theft shit breaking etc Ordering costs the costs when ordering inventory Trade off between ordering costs and carrying costs Stock out costs are the costs we know it costs 5 times as much to acquire a new customer than it does to retain an existing one Trade off between carrying costs and stock out costs WHEN TO ORDER you can use a fixed amount of inventory Fixed order quantity or they can be placed at fixed time intervals Fixed order interval there needs to be a reoder trigger point a level of inventory at which a new order is placed How much should they order Aka EOQ the economic order quantity calculates how much should be ordered with inventory carrying costs minimized On a graph it is when order costs and carrying costs intersect Dead InvenTORY is shit you cannot sell so it just increases your carrying costs for no reason Inventory turnover you want to be high Vender managed inventory VMI the size and timing of replenishment orders are the responsibility of the manufacturer Chap 6 Procurement refers to the raw materials component parts and supplies bought from outside organizations to support a companies operation Costs about 60 80 of the companies revenue P CARDS are just company credit cards reason for having them is they reduce the number of invoices and it also makes purchases able to happen in minutes The objectives of procurement 1 supporting organizational goals and objectives 2 managing the purchasing process 3 managing the supply base 4 having relationships with the other companies 5 support operational requirements THE selection process Supplier selection process Start by identifying the need for supply situation analysis internal factors external factors identify and evaluate potential suppliers sources of potential information establish selection criteria and assign weights to each criteria Select suppliers consider the company policies Evaluate decision compare actual and expected performance Investment recovery an opportunity to recover lost revenues with waste materials Chap 5 Supply chain Management Supply chain management the management of relationships through the network of organizations ie Customers producers etc A supply chain is a combination of processes by which products and shit move in and between from producer to consumer The SCOR supply chain operation reference model Plan Source Make Deliver Return and Enable 6 things The