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21 Cards in this Set
- Front
- Back
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Logistics
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The purpose of planning, implementing and controlling the efficient flow of raw materials, in-process inventory and finished goods
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Three major periods of development
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pre 1950's
50's - 60's 1970's and beyond |
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Pre 1950's
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no guiding philosophy
WWII military suggest use in business profits were good so inefficiency was tolerated |
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1950's to 1960's
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scholars point out businesses ignoring physical distribution
Harvard study: total cost concept poor economical conditions books written in universities |
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1970's and beyond
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physical supply and physical distribution
integration of logistics - across functional areas supply chain created |
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Supply Chain
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an integrating philosophy to manage the total flow of a distribution channel from suppler to ultimate customer
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landed cost
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ultimate cost when it goes to all the stages.
ALL costs added along the way |
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Types of flows that exist in an integrated supply chain
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information
product cash |
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another word for materials management
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physical supply
interchangeable |
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major activities included in logistics
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materials handling
procurement plant and warehouse site location traffic and transportation warehousing and storage packaging inventory control order processing customer service demand forecasting communicatons return good handling support salvage disposal disagreement |
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logistics change over the years
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cost have been going down
doing it better and better |
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system
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system = components + interactions
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levels of optimality
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optimizing a system usually means having to suboptimize one ore more subsystems
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4 major approaches for analyzing a logistics system
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physical supply vs physical distribution
cost centers node/link logistics channels |
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cost center
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annual costs for three alternative transportation methods considered by an electronic instrument manufacturer
AIR TRUCK RAIL transportation 60 50 40 inventory carrying 24 50 50 total 84 100 90 |
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node
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warehouse (storage)
or plant (processing) |
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link
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transportation
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trade offs
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fixed cost compared to variable costs
Homework |
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static analysis
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one level of output
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dynamic analysis
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multiple levels of output
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indifference point
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set equations = to one another
when each system costs the same for the same amount of output |
