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1、Chapter I Logistics System,Outline-1,Part I Introduction To Logistics System The role of logistics The definition of logistics The definition of logistics management Component of a logistics system:,Customer service Demand forecasting/planning Inventory management Logistics information Material hand
2、ling Order processing,Packaging Procurement Return goods handling Reverse logistics Transportation Warehousing,Outline-2,Part II Relationship of Logistics Activities to Logistics Costs Customer service levels Transportation Costs Warehousing Costs Order Processing /Information Systems Costs Lot Quan
3、tity Costs Inventory Carrying Costs Part III Supplementary Reading Royal Caribbean Cruises Ltd.,Part I Introduction to Logistics System,The Historical Perspective of Logistics Logistics starts from military. Logistics is a concept familiar to students of military history. Long associated with the di
4、stribution and supply of armed forces in wartime, logistics is proving to be a source of the victory of a campaign. In the early part of 1991 the world was given a dramatic example of the importance of logistics. During the Gulf War it had been necessary for the United States and its allies to move
5、huge amounts of material great distances in what were thought to be impossibly short time-frames. Half a million people and over half a million tones of material and supplies were airlifted 12,000 kilometers with a further 2.3 million tones of equipment moved by seaall of this achieved in months.,In
6、 the Second World War logistics also played a major role. The Allied Forces invasion of Europe was a highly skilled exercise in logistics, as was the defeat of Rommel in the desert. Rommel himself once said that before the fighting proper, the battle is won or lost by quartermasters.,The Modern Pers
7、pective of Logistics,Logistics is recognized only recently. However while the Generals from the earliest times have understood the critical role of logistics, it is only in the recent past that business organizations have come to recognize the vital impact that logistics management can have in the a
8、chievement of competitive advantage.,This lack of recognition partly comes from the low level of understanding of the benefits of integrated logistics. It has taken a further 70 years or so for the basic definition of logistics and the basic principles of logistics management to be clearly defined.,
9、The Concept of Logistics,At its heart, logistics deals with satisfying the customer. A basic definition of logistics is the continuous process of meeting customer needs by ensuring the availability of the right benefits for the right customer, in the quantity and condition desired by that customer,
10、at the time and place the customer wants them, all for a price the buyer is willing to pay.,The Definition of Logistics Management,Then what is logistics management in the sense that it is understood today? There are many ways of defining logistics. The Council of Supply Chain Management Professiona
11、ls (CSCMP) defines that: “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to m
12、eet customers requirements.”,Component of a Logistics System,A logistics system can be made up of many different functional activities, some of which are described briefly below. Customer service: Customer service is the output of a logistics system. It involves getting the right product to the righ
13、t customer at the right place, in the right condition and at the right time, at the lowest total cost possible. Demand forecasting/planning: Logistics usually becomes involved in forecasting how much should be ordered from its suppliers, and how much of finished product should be transported or held
14、 in each market. In some firms, logistics may even plan production.,Inventory management: Inventory management involves the balance of the level of inventory held to achieve high customer service levels with the cost of holding inventory. Logistics information: Information links all areas of the log
15、istics system together. Information processing is becoming increasingly automated, complex, and rapid. It is key to the efficient functioning of system. Material handling: Material handling is a broad area concerning all movements of raw materials, work in process, or finished goods within a factory
16、 or warehouse.,Order processing: Order processing is the system a firm has for getting orders from customers, checking on the status of orders and communicating to customers about them, and actually filling the order and making it available to the customer. Packaging: Packaging can convey important
17、information to inform the customer and provide protection during storage and transport. Pleasing packaging also can attract the customers attention. Procurement: Procurement is the purchase of materials and services from outside to support the firms operations from production to marketing, sales, an
18、d logistics.,Return goods handling: Returns may take place because of a problem with the performance of the item or simply because the customer changed mind. Return goods handling is complex and costly. Reverse logistics: Reverse logistics is involved in removal and disposal of waste materials left
19、over from the production, distribution, or packaging processes. Transportation: Transportation involves selection of the mode, the routing of the shipment, compliance with regulations in the region of the country, and selection of the carriers. Warehousing: warehousing and storage activities relate
20、to warehouse layout, design, ownership, automation, training of employees, and related issues.,New Words and Phrases,logistics lE5dVIstIksn. familiar fE5miljE adj. military 5militEri adj. associate E5sEuFieit vt. ally E5lai, A5lai n. airlift 5eElIftvt. quartermaster 5kwC:tEmB:stE(r) n. critical 5kri
21、tikEl adj. vital 5vaitl adj. impact 5impAkt n.,availability E7veilE5biliti n. implement 5implimEnt vt. conform kEn5fC:m vt. forecast 5fC:kB:st vt. inventory 5invEntri n. defective di5fektiv adj. procurement prE5kjuEmEnt n.,Part II Relationship of Logistics Activities to Logistics Costs,Logistics cos
22、ts are created by the activities that support the logistics process. Each of the major costscustomer service, transportation, warehousing, order processing and information, lot quantity and inventory carryingare discussed below. Customer Service Levels The key cost associated with varying levels of
23、customer service is the cost of lost sales. Monies that are spent to support customer service include the costs associated with order fulfillment, parts, and service support. They also include the costs of return goods handling, which has a major impact on a customers view of the organizations servi
24、ce as well as the final level of customer satisfaction.,The cost of lost sales includes not only the lost of the current sale, but also potential future sales from the customer and from other customers due to word-of-mouth negative publicity from former customers. A recent estimate indicated that ev
25、ery unsatisfied customer tells an average of nine others about his or her dissatisfaction with the product or service. It is no wonder that it is extremely difficult to measure the true cost of customer service! The objective is to minimize total costs given the customer service objectives Thus, the
26、 best approach is to determine desired levels of customer service based on customer needs. The idea is to minimize the total cost, given the customer service objectives. Because each of the other five major logistics cost elements work together to support customer service, good date are needed regar
27、ding expenditures in each category.,Transportation Costs The activity of transporting goods causes transportation costs. Expenditures that support transportation can be viewed in many different ways. Costs can be categorized by customer, product line, type of channel such as inbound versus outbound,
28、 and so on. Costs vary with volume of shipment (cube), weight of shipment, distance, and point of origin and destination. Costs and service also vary with the mode of transportation chosen. Warehousing Costs Warehousing costs are created by warehousing and storage activities, and by the plant and wa
29、rehouse site selection process. Included are all of the sites that vary due to a change in the number or location of warehouses.,Order Processing/Information Systems Costs This category includes costs related to activities such as order processing, distribution communications, and forecasting demand
30、. Order processing and information costs are a very important investment to support good customer service levels and control costs. Order processing costs include such costs as order transmittal, order entry, processing the order, and related internal and external costs such as notifying carriers an
31、d customers of shipping information and product availability. Shippers and carriers have invested a great deal in improving their information systems, to include technology such as electronic data interchange (EDI), satellite data transmission, and bar coding and scanning shipments and sales.,Lot Qu
32、antity Costs The major logistics lot quantity costs are due to procurement and production quantities. Lot quantity costs are purchasing- or production- related costs that vary with changes in order size or frequency. Lot Quantity costs must not be viewed in isolation because they also may affect man
33、y other costs. For example, a customer goods manufacturer that produces large production runs may get good prices from suppliers and have long efficient production runs, but requires more storage space to handle large runs. Customer service levels may suffer as order fulfillment declines because pro
34、ducts are produced infrequently, in large batches, and with inventory going to zero and creating stockout situations in between runs. This may increase information and order processing costs, as customers frequently call to check on availability of back- ordered products, and cancel back orders.,Tra
35、nsportation costs also may rise as customers are sent partial or split shipments. Inventory carrying costs will rise as large quantities of inventory are held until used up, due to large batch sizes. The implication of one cost upon another must be carefully considered. Inventory Carrying Costs The
36、logistics activities that make up inventory carrying costs include inventory control, packaging, and salvage and scrap disposal. Inventory carrying costs are made up of many elements. The relevant inventory costs are those that vary with the amount of inventory stored including the four major catego
37、ries as following:,1.Capital cost, which is the return that the company could make on the money that it has tied up in inventory. 2.Inventory service cost, which includes insurance and taxes on inventory. 3. Storage space cost, which includes those warehousing space- related costs which change with
38、the level of inventory. 4.Inventory risk cost, including obsolescence, stealing, relocation within the inventory system, and damage.,New Words and Phrases,expenditure iks5penditFE, eks- n. category 5kAtiEri n. destination 7desti5neiFEn n. inbound 5inbaund adj. outbound 5autbaund adj vary 5vZEri vt.
39、communication kE7mju:ni5keiFn n. forecast 5fC:kB:st n. vt. transmittal trAnz5mitEl n. order entry internal cost in5tE:nl adj. external cost eks5tE:nl adj. notify 5nEutifai v.,支出,花費 種類,類別 目的地 往內開的 向外開的 不同 信息,交流 預測 傳送, 傳輸 訂單輸入 內部成本 外部成本 通報,通知,availability E7veilE5biliti n. satellite data transmission
40、trAnz5miFEn lot quantity purchase 5pE:tFEs vt. n. frequency 5fri:kwEnsIn. isolation 7aisEu5leiFEn n. order fulfillment ful5filmEnt decline di5klain v. n. back order stockout n. batch bAtF n. inventory carry cost salvage 5sAlvidV v. scrap skrAp v.,可用性, 可獲得性 人造衛(wèi)星數(shù)據(jù)傳輸 批量 購買 頻率, 周率 隔絕, 孤立 履行訂單 降,下傾 延期交貨
41、 缺貨 批次 庫存持有成本 搶救 敲碎,Part III Supplementary ReadingRoyal Caribbean Cruises Ltd.,The replenishment of cruise ships is daunting. One of the most daunting logistics jobs in the world is planning and implementing the replenishing of a cruise ship. Literally thousands of items, ranging from fresh bed line
42、n to engine parts to perishable foodstuffs, must arrive at the vessel by a hard-and-fast deadline. “Every week brings a new crisis,” said Jim Walton, director of materials and logistics for Royal Caribbean Cruises Ltd in Miami. “Recently, 1,500 pounds of lamb didnt make it to a vessel in time, so a
43、chartered plane flew the lamb to the ship in Mexico.” “Cruise ships are moving targets. You only have a short window to get whats critically needed to them. Otherwise, the captain doesnt wait around,” he said.,Material Requirement of a Cruise Ship As Cruises ship designers emphasized passenger ameni
44、ties and cabin space over stowage space, the 90-day provisioning has been reduced to 14 days in all areas. This change transferred a huge responsibility to logistics to replenish ships in various out ports. On this basis, logistics have one opportunity to ensure all goods arrive within a six-to-eigh
45、t hour window. The itinerary for each Royal Caribbean vessel is planed two years in advance. With that data in hand, Waltons logistics department publishes a container load schedule, which specifies vendor delivery dates, by commodity for each vessel, over a six-month period. For each ship there are
46、 delivery dates for chilled produce, frozen food, dry goods, bonded marine items, and gift shop and hotel items. The logistics department ships everything from blocks of ice to uniforms and tuxedoes; all manner of food stuffs; radar domes, navigation equipment, floral arrangement, spare parts for ma
47、chinery in a vessels engine room, even chemicals for each ships photo developing shop.,Distribution and Material Handling Royal Caribbean owns 17 vessels12 operated by Royal Caribbean International and five by Celebrity Cruises. Waltons 22-person staff handles logistics for all of the ship. “We work
48、 seven days a week, 24 hours a day. We load ships on weekends, working 10 to 12 hour days. We stagger our schedules so that some personnel are here all of the time, even on holidays. There are no days off for the logistics department.” Waltons organization spends much of its time overseeing the phys
49、ical handling of goods for the ships. A supplier may send a shipment covering eight different vessels. Waltons department segregates those goods by vessel and by service sector beverage,hotel,gift shop, marine (meaning the functioning of the ship), entertainment, cruise programs, aquatics and hotel
50、services. “We have to build specific pallets for each sector or department, and label them as such,” he said.,The reason is that goods are loaded on a cruise ship through different doors or hatches. When cargo arrives pier side, it must go aboard through the proper door. Royal Caribbeans cruise ship
51、s load at a rate of 40 pallets an hour, taking on a total of about 200 in five to six hours. At the same time, at least 2,000 passengers are boarding over other gangways. Purchasing and supplier management Royal Caribbean regularly uses a core group of about 400 vendors. The company buys through dis
52、tributors, especially on the hotel and food and beverage side, but negotiates many of its contracts directly with manufactures. Distributors service the agreements, and maintain inventory stocks. “We try to keep as little inventory on hand as possible, and order on a just- in- time basis,” Walton sa
53、id. “If a vendor fails us, then they are charting a plane at their expense.,If they ship the wrong product, or something that wasnt according to specification, they have to get the right product to the vessel at the next port of call. If that means arranging for an aircraft immediately, then they ha
54、ve to do it.”,New Words and Phrases,cruise ship kru:z daunting dC:nt adj. implement 5implimEnt v. replenish ri5pleniF v. amenity E5mi:niti n. cabin space 5kAbin n. stowage space 5stEuidV provision prE5viVEn n. outport prE5viVEn n. itinerary ai5tinErEri, i5t- n. vendor 5vendC: n. chilled produce tFil
55、d adj. tuxedo tQk5si:dEu n.,郵輪 令人畏縮的 實施,執(zhí)行 補給,補充 禮儀,禮節(jié) 小屋, 船艙 倉庫,供儲藏用的空間 供給 大港外的獨立小港 路線 賣主 已冷的, 冷硬了的, 冷凍的 男士無尾半正式晚禮服,radar dome 5reidE dEum n. navigation equipment 7nAvi5eiFEn n. floral arrangement 5flC:rEl adj. segregate 5serieit v. beverage 5bevE ridV n. pallet 5pAlit n. hatch hAtF n. pierside piE
56、 n. distributor dis5tribjutE n.,雷達天線(整流)罩 航海, 航空, 導航, 植物群的, 花似的, 花的, 植物的 隔離 飲料 貨盤 艙口, 艙口蓋, 碼頭 發(fā)行人,Chapter I ISupply Chain Management,Outline-1,Part I Supply Chain Management Overview of supply chain and supply chain management Comparison of logistics and supply chain management Types of supply chain
57、 strategies,Market driven Operationally agile Freshness oriented Customer-guided Logistics optimizer Trade focused,Part III Supplementary Reading Dell Computers: Using the Supply Chain to Compete,Outline-2,Part II Supply Chain Strategies Five supply chain strategy Many suppliers strategy Few supplie
58、rs strategy Vertical integration Keiretsu networks Virtual companies,Part III Supplementary Reading Dell Computers: Using the Supply Chain to Compete,Part I Supply Chain Management Overview of Supply Chain,Definition of supply chain Supply chain, (also called value chain or demand chain), is the net
59、work of the involved companies, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer. Figure 2.1 shows a typical supply chain in which the production and distribution systems are made up of two stages each. In the production system, components and semi-finished parts are produced in two manufacturing centres while finished goods are assembled at a different plant. The distribution system consists of two central distrib
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