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A snapshot of the summary - Logistics: principles and practice
1 Logistics subsystems
1.1 introduction to logistics
What four problems do organizations face due to their suppliers?Delivering goods late
Delivering the wrong goods
delivering a shipment to the wrong address
providing bad service after the goods have arrived
What three problems do organizations face duo to their own fault?Bad layout in the warehouse
inventory fails to correspond with its administration
machines kept idle because they lack raw materials
What 2 problems do organizations face due to their clients?Complaining about missing goods on delivery
refusing to pay, because the orde is incomplete
1.2 Historical development of logistics
Out of which flows does the discipline of logistics exist?The flow of goods
the flow of data
the flow of money
1.3 logistics subsystems
What is the best way to represent a physical flow? And how does it work?A black box.
Something goes in on one side and something with added value comes out on the other side.
What is business logistics?Business logistics is the general term for all activities performed to control the incoming and outgoing flow of goods.
What is material management?Material management compromises all activities undertaken to feed the efficient flow of raw materials and semi-finished products.
Out of which four subsystems does material management exist?1. Purchasing
2. Inventory control of raw materials, resources and semi-finished products
3. Production planning and managing the execution of plans
4. Materials handling
What are the three subsystems of physical distribution?1. Inventory control of finished products
2. Decisions regarding warehousing and depots
3. External transport
What are inventory costs and what are transport costs?Inventory costs are the interest costs related to capital tied up in present inventory.
transport costs are costs referring to the external transport between manufacturer, wholesaler and retailer.