Transcript Applied Management Science Introduction

Logistics
Tran Van Hoai
Faculty of Computer Science & Engineering
HCMC University of Technology
2010-2011
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Outline
• What is logistics ?
– As a part of supply-chain
• Systems and total cost approaches
• Logistical relationships with a firm
• Activities in the logistical channel
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Economic impacts
Year
Inventory
carrying
costs
Transporta Administrativ
tion costs
e costs
Total US
logistics
costs
Logistics as a
percentage of
GDP
1980
220
214
17
451
16.1
1985
227
274
20
521
1995
302
441
30
773
12.4
11.4
10.4
2000
377
590
39
1006
10.1
12th Annual State of Logistics Report, 2001
mainly contributes to explosive growth
1960
- (60% GDP
31
increase)
44
of Ireland’s
3
78
economy
14.7in
1965
38
mid-64 and late-4 1990s106
14.7
56
91
6
153
-1970
15-20% GDP
of Vietnam
(~12billions
USD14.7
2010,
1975
97
116
9
222
13.5
source:
Vietstock.vn)
351
25
659
Strong 283
macro-level
economic
impacts
1990
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Impacts to individual customer
Economic utility
Possession
utility
Form
utility
Place
utility
Time
utility
• A student uses online service to order Valentine’s
Day flowers for his out-of-country girlfriend
– Possession utility: service provides secured payment
by credit card
– Form utility: service provides correct bouquet
– Place utility: bouquet arrives at girlfriend’s residence
– Time utility: on Valentine’s Day
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What is logistics ?
• It has been referred by
many terms
• Different organizations
may have different
definition of logistics
– Business logistics
st organization:
•
1
–
Distribution
Logistics is a part of supply chain process that plans,
transportation &
– Industrial
distribution
implements,
and
controls the efficient,
effective
forward
inventory
management
Logisticsflow and storage of goods,
and –reverse
services, and
• 2nd organization:
– Logistics
management
related
information
between point transportation,
of origin and point of
– Materials management
inventory
management
consumption
in order to meet customers’
requirements
– Supply chain
& warehousing
(Council
of Logistics Management)
management
–…
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Supply chain configurations (1)
Supplier
Organization
Customer
Direct Supply Chain
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Supply chain configurations (2)
Supplier’s
supplier
Supplier’s
supplier
Customer’s
customer
Organization
Customer
Extended Supply Chain
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Supply chain configurations (3)
Ultimate
customer
Ultimate
supplier
Market
research firm
Financial
provider
Supplier’s
supplier
Organization
Ultimate Supply Chain
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Customer
3rd party
logistics supplier
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Supply chain management
A supply chain management is as systemic, strategic
coordination of traditional business functions and tactics
across these business functions within a particular and
across businesses in the supply chain, for the purposes of
improving long-term performance of individual companies
and supply chain as a whole
(Mentzer et al, 2001)
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Supply-Chain Operations Reference
(SCOR)
SCOR
process
Plan
Definition
Source
Procuring goods & services to meet planned or actual
demand
Transforming product to finished state to meet
planned or actual demand
Providing finished goods & services to meet planned
or actual demand
Returning & receiving returned products for any
reason
Make
Deliver
Return
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Balancing demand & supply to develop actions which
best meets requirements
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Increased importance of logistics
• A reduction in economic regulation
– Tailored logistics approach to meet different
specific service levels
• Technological advances
– Computer
– Internet
• Growing power of retailers
• Globalization of trade
– $200billions in 1970 -> $7.7trililions in 2000
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Logistical relationships within firm
FINANCE
MARKETING
PRODUCTION
Systems approachLOGISTICS
and total cost approach
should be applied to logistics
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Activities in logistical channel
• Customer service
• Facility location
decisions
• Inventory management
• Order management
• Production scheduling
• Returned products
• Transportation
management
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•
•
•
•
Demand forecasting
Industrial packaging
Materials handling
Parts and service
support
• Procurement
• Salvage and scrap
disposal
• Warehousing
management
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