Applied Logistics Management
Subject: Applied Logistics Management
Chapter’s summarized: Chapter 2, 3, 4, 7, 8, 9, 10
Final grade: 8.2
Chapter 2 - Logistics
Operational performance deals with the time required to deliver a customer’s
order
Malfunction is concerned with the probability of logistical performance failure,
such as damaged products.
Total cost was positioned to include all expenditures necessary to perform
logistical requirements
A sound inventory strategy is based on a combination of five aspects of selective
deployment:
- Core customer segmentation
- Product profitability
- Transportation integration
- Time-based performance
- Competitive performance
To achieve logistical integration within a supply chain context, six operational
objectives must be achieved:
- Responsiveness
- Variance reduction (elimination of operational disruptions) (verstoringen)
- Inventory reduction
- Shipment consolidation
- Quality
- Life cycle support
Life cycle support required cradle-to-cradle logistics. Cradle-to-cradle logistical
support goes beyond reverse logistics and recycling to include the possibility of
aftermarket service, product recall, and product disposal. > Waste products can
be re-used to produce new products.
A logistical system having an echeloned structure means that the flow of
products typically proceeds through an established arrangement of firms as it
moves from origin to final destination.
> The logistical structure from supplier to customer
Direct: there are also logistical systems that ship products directly to the end
customer
Combined: is also possible
A cross-dock operation involves shipments from multiple suppliers arriving at a
designated time at the handling facility. Inventory receipts are sorted by
destination across the dock and consolidated into outbound trailers for direct
delivery.
Inventory dwell time > when inventory sits idle
, Chapter 3 - Customer Relationship Management (CRM)
Customer is the end user of the product or service, can be an individual or an
organization
Transactional marketing, focus on short-term interaction with customers
Relationship marketing, focus on long-term relations with consumers
Four generic service outputs necessary to satisfy customer requirements
- Spatial convenience, amount of shopping time and effort that will be
required on the part of the customer
- Lot size, number of units to be purchased in each transaction
- Waiting or delivery time
- Product variety and assortment
Fundamental attributes of basic customer service:
- Availability (of products)
- Operational performance, time required to deliver a customer’s order
- Service reliability (critical information processing for example)
The perfect order, an order should be delivered complete, on time, at the right
location, in perfect condition, with complete and accurate documentation.
The failure of many firms to satisfy their customers can be traced to the
existence of one or more gaps in the framework:
- Knowledge gap, customer expectations and managers perception
-Standards gap
- Performance gap
- Communications gap
- Perception gap, “we’re only as good as the last order”
- Satisfaction / quality gap
> These gaps result in customer dissatisfaction
Value-added services refer to unique or specific activities that firms can jointly
develop to enhance their efficiency, effectiveness, and relevancy. > customized
or tailored logistics
Chapter 7 - EOQ
EOQ=√(2CoD) / (CiU)
Co = Cost per Order
D = Annual sales volume
Ci = Annual inventory carrying cost
U = Cost per Unit
EOQ=√( 2 * Cost per order * Annual sales volume ) / (Inv. Carr. Cost *
Cost per Unit)
Inventory Carrying Cost = Inventory Carrying Rate X Average Inventory
Value
Subject: Applied Logistics Management
Chapter’s summarized: Chapter 2, 3, 4, 7, 8, 9, 10
Final grade: 8.2
Chapter 2 - Logistics
Operational performance deals with the time required to deliver a customer’s
order
Malfunction is concerned with the probability of logistical performance failure,
such as damaged products.
Total cost was positioned to include all expenditures necessary to perform
logistical requirements
A sound inventory strategy is based on a combination of five aspects of selective
deployment:
- Core customer segmentation
- Product profitability
- Transportation integration
- Time-based performance
- Competitive performance
To achieve logistical integration within a supply chain context, six operational
objectives must be achieved:
- Responsiveness
- Variance reduction (elimination of operational disruptions) (verstoringen)
- Inventory reduction
- Shipment consolidation
- Quality
- Life cycle support
Life cycle support required cradle-to-cradle logistics. Cradle-to-cradle logistical
support goes beyond reverse logistics and recycling to include the possibility of
aftermarket service, product recall, and product disposal. > Waste products can
be re-used to produce new products.
A logistical system having an echeloned structure means that the flow of
products typically proceeds through an established arrangement of firms as it
moves from origin to final destination.
> The logistical structure from supplier to customer
Direct: there are also logistical systems that ship products directly to the end
customer
Combined: is also possible
A cross-dock operation involves shipments from multiple suppliers arriving at a
designated time at the handling facility. Inventory receipts are sorted by
destination across the dock and consolidated into outbound trailers for direct
delivery.
Inventory dwell time > when inventory sits idle
, Chapter 3 - Customer Relationship Management (CRM)
Customer is the end user of the product or service, can be an individual or an
organization
Transactional marketing, focus on short-term interaction with customers
Relationship marketing, focus on long-term relations with consumers
Four generic service outputs necessary to satisfy customer requirements
- Spatial convenience, amount of shopping time and effort that will be
required on the part of the customer
- Lot size, number of units to be purchased in each transaction
- Waiting or delivery time
- Product variety and assortment
Fundamental attributes of basic customer service:
- Availability (of products)
- Operational performance, time required to deliver a customer’s order
- Service reliability (critical information processing for example)
The perfect order, an order should be delivered complete, on time, at the right
location, in perfect condition, with complete and accurate documentation.
The failure of many firms to satisfy their customers can be traced to the
existence of one or more gaps in the framework:
- Knowledge gap, customer expectations and managers perception
-Standards gap
- Performance gap
- Communications gap
- Perception gap, “we’re only as good as the last order”
- Satisfaction / quality gap
> These gaps result in customer dissatisfaction
Value-added services refer to unique or specific activities that firms can jointly
develop to enhance their efficiency, effectiveness, and relevancy. > customized
or tailored logistics
Chapter 7 - EOQ
EOQ=√(2CoD) / (CiU)
Co = Cost per Order
D = Annual sales volume
Ci = Annual inventory carrying cost
U = Cost per Unit
EOQ=√( 2 * Cost per order * Annual sales volume ) / (Inv. Carr. Cost *
Cost per Unit)
Inventory Carrying Cost = Inventory Carrying Rate X Average Inventory
Value
