2222 Essay

8281 Words Oct 6th, 2014 34 Pages
CHAPTER

LOGISTICS AND THE SUPPLY CHAIN

Special logistics staffs handle the mO\'cIllent of items and displays for trade shows and special events. This sleek Mercedes racer is being loaded aboard a KLM Boeing 747. Photo KLM-Ro\'a! Dutch Airline, Photo Archi\es. Reproduced with permission,

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CHAPTER 1 Logistics and the Supply Chain

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Key Terms
• Channel intermediaries • Phantom freight • Place utility • Possession utility • Postponement • Power retailer • • Reverse logistics Stock-keeping units (SKUs) • Cost trade-offs • Economic utility • FOB destination pricing • FOB origin pricing • Form utility • Freight absorption • Inbound logistics • Landed costs • Logistics • Mass logistics • Materials management

• Stock outs •
…show more content…
Continuing with a macro perspective. logistics can also play an important role in a nation's economic growth and development. Hannigan and Mangan pointed out that logistics. particularly improvements in transportation efficiency. played a key role in the explosive growth of Ireland's economy in the mid- and late-1990s (they had a GOP increase of 62 percent in this period). According to Hannigan and Mangan. future growth of Ireland's economy will not be

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Paul Page, "The China Effect:' Traffic World, May. 8. 2006. 19-21.

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PART I

Overview of Logistics
The Cost of the Business Logistics System in Relation to Gross Domestic Product (GOP)
In $ Billion Inventon' Carrying Costs Total U.S. Logistic,5 Cost Logistics As a Percentage ojGDP

TABLE 1-1

Year

Transporfation Costs

Administrative Costs

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

31 38 56 97 220 227 283 302 377 393

44
64

91 116 214 274 351 441 590 744

3 4 6 9 17
20

25
30

78 106 153 222 451 521 659 773
1.006
1.183

39 46

14.7 14.7 14.7 13.5 16.1 12.4 11.4 10.4 10.1 9.5

Sources: Rosalyn Wilson and Robert Delaney. Twelfth Annual Stale of Logistics Report. 2001; Rosalyn Wilson. Seventeenth Annual State of Logistics Report, 2006.

possible without improvements to its logistical capabilities. 2 In a similar fashion, both the Chinese

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