Logistics Operations and Management

A catalog record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data. 200 11.1.5 Definition of customer service in logistics context 200 11.2 What is behind the growing importance of customer service.

Special Areas and Philosophies 219

Gholamreza Esmaeilian Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, Serdang, Selangor, Malaysia and Department of Industrial Engineering, Payam Noor Universiti, Iran Behnam Fahimnia. Computer Science and Transportation Studies Institute, University of California, Irvine, CA, USA Shabnam Rezapour.

Introduction

History

It seems that the ancient Greeks referred the word logististosto to military officers who were experts in calculating the military needs for expeditions in war. As a science, it appears that the first book written on logistics was by Antoine-Henri Jomini, a general in the French army and later in the Russian service, entitled Summary of the Art of War (1838).

Definition of Logistics

Many people think that logistics is a word, but from a semantic point of view, its origin was from ancient Greek and meant "the science of calculation." In fact, it is originally from combat environments and not from business or academia. Considering that the US GDP in 2003 was approx. 12,400 billion dollars, the logistic activity costs were approx. 1054 billion dollars (Seventeenth Annual State of Logistics Report of USA 2006).

Evolution of Logistics Over Time

Other Logistical Books

The Focus of This Book

In addition, some approaches and modeling concepts, such as robustness and risk, are discussed in separate chapters. G Last but not least, some chapters, such as those on logistics parties, logistics philosophies and logistics future trends, will interest the readers and cannot be found in other sources.

Organization

This chapter is devoted to introducing brief information about the most studied types of VRPs. Later, we present practical policies that have been put in place to mitigate these externalities in the United States and other parts of the world.

Audiences

The chapter then continues with a detailed explanation of the power transmission network components on which the models are based. These terms as well as some of the other related logistics terminologies are shown in Figure 2.1.

Figure 2.1 Logistics flows and some of the different logistics terminologies [3].

The Transportation System

Because of the high fixed costs and low line-haul costs of water transport, she. 15] cited the definition of intermodal transport from reference [16] as follows: "The movement of goods in one and the same loading unit or vehicle that uses several means of transport in succession without handling the goods themselves in changing modes.".

Figure 2.3 Selected forms of intermodal combination [10].

Physical Nature of the Product

Therefore, criteria other than price play an important role in determining the appropriate distribution system for high-value products. The distribution system must ensure the availability of these products at all times, otherwise the sale would be lost.

Channels of Distribution

The number of these trade links can be reduced by adding an intermediary (an agent or broker, a wholesaler or a retailer) between producers and customers. As the number of intermediate levels increases, the channel becomes more complex and the producer's control over product flows decreases.

Figure 2.4 shows how using intermediaries can improve the efficiency of a distribu- distribu-tion channel by reducing the number of trading links

Warehousing and Storage

This section presents some of the most common examples of the different types of storage and handling equipment available for these two systems. This section presents some of the equipment and devices commonly used in various storage and handling systems for these items.

Strategy

During the planning of the business process, the company's strategy and objectives are identified and a specific competitive strategy is determined [2]. It affects the entire configuration of the company's logistics strategy: the extent of globalization, the type of competitive positioning adopted and the degree to which the supply chain is integrated [2].

Strategic Planning

External environment is the study of economic climate, political climate and regulations, technological developments and evaluation of primary competitors, especially service and logistics industries. Regarding the analysis of internal factors, a logistics business should typically carry out a strengths, weaknesses, opportunities and threats (SWOT) analysis to compare its position within the relevant market, its potential demand and its services offered to review with its competitors. to determine its overall corporate or business strategy.

Logistics

Supply-chain management is a highly strategic planning process, based on strategic decisions rather than operational ones. Despite efforts to define the difference between the concepts of logistics and supply chain, most companies are now trying to move their logistics into a supply chain—.

Logistics Decisions

From a systematic point of view, the supply chain is seen as a whole rather than as a series of separate elements such as purchasing, production and distribution. If a supply chain were the sum of entities, not their integration, this flow of information would not exist, while it is a necessity for the success of the chain.

Logistics Planning

These decisions are often made by middle managers or logistics engineers and often with fragmented data. As mentioned earlier in this chapter, strategic decisions are business objectives and mission statements, as well as marketing and customer service strategies.

Logistics Strategic Decisions

Facility location decisions are clearly made at the start of a business, but Ghiani et al. These decisions are about establishing and maintaining an effective communication system and planning for sharing information throughout the system.

Tools of Strategic Decision Making

Insurance is preferred when the firm wants to integrate factory operations, must have direct control over production and quality, wants some secrecy, does not have reliable suppliers, or has items or production technologies that are strategic to the firm [12]. Students of industrial engineering, management engineering, systems engineering, operations research, and management programs learn to use these tools for a variety of problems and projects.

Logistics Strategic Flexibility

Summary

To summarize briefly, the first steps of a logistics system management, like any other type of business, are logistics strategic decisions. Christopher, Logistics and Customer Value, in book: Logistics and Supply Chain Management—Creating Value Adding Networks, Prentice Hall, London, 2005, pp.

Lean Logistics

Reducing the kanban quantity (i.e. the quantity requested from each workstation) gradually reveals bottlenecks [3]. The number of dispatch doors is therefore equal to the number of destinations served by the crossdock, multiplied by the required doors.

Figure 4.1 Hidden problems as a result of holding extra inventory [3].

Agile Logistics

For Christopher, “The logic behind QR is to capture demand as close to real-time and as close to the end consumer as possible” [3], which is the most reliable information for subsequent logistics responses and decisions. yawns. The development of the QR strategy in the fashion industry prompted the development of the effective consumer response (ECR) strategy, which has the same concepts as QR in the food industry [27].

Table 4.1 Market Qualifier and Market Winner for Agile and Lean Supply [25]

Third-Party Logistics: An Overview

The growth rate of the 3PL industry and the increasing interest in outsourcing logistics activities illustrate the growing importance of the 3PL role in the industry, making it an interesting research field for further study and development. Unfortunately, no single consistent definition of the 3PL concept can be found in the 3PL literature.

New Generations of Logistics Parties

Deloitte Touche Tohmatsu (also branded as Deloitte) is one of the largest professional services organizations in the world. The financial strength of the 3PL is an important factor in choosing the appropriate 3PL.

Figure 5.2 Evolution in supply-chain outsourcing [13].

Concluding Remarks

Catay, Third-party logistics provider selection: insights from a Turkish automotive company, Supply Chain Manag. Joo, Comparing the operational performance of third party logistics providers using data envelopment analysis, Supply Chain Manag.

Main Influencing Issues

IT is the initiator and background for many information and knowledge sharing systems for supply chain collaborations. Electronic data interchange (EDI) has been widely used to transfer information between suppliers and customers in a supply chain.

Table 6.1 Traditional and E-Logistics Characteristics [9]

Future Trends in Some Logistics Sectors

G Business will become more dependent on carefully timed and reliable freight transport due to more intensive connectivity between members of the supply chain. Warehouses will play a strategic and important role in controlling total supply chain costs and in meeting service requirements in a dynamic environment [16].

Future Trends in Technical Reports

Other segments of inventory management will engage in satisfying small orders of individual items required in the e-business environment. China will still have the opportunity to be the most important manufacturing region in the world and there will be a shift in geographic focus (ie market share) from other areas towards China.

Basic Aspects in Transportation Systems

In the first group, the channel has no intermediaries, so manufacturers send their products directly to end users. In the freight and logistics environment, there are many different ways to save on shipping costs.

Figure 7.1 illustrates these four distribution channels.

Classification of Transportation Problems

Lettir,iAI,rAR, is the number of time periods taken to deliver the despatch ion router. Using LTL carriers, gi is the delivery cost for the shipments and τ0i is the number of time periods this delivery takes.

Figure 7.2 demonstrates the variety of demands over the year. Minimum annual cost is obtained when the area below and above the line v t 5 v be equal

Case Study: An Application of Cost Analyses for Different Transportation Modes in Turkey

An analysis of the figures for maritime transport revealed the following points: A fullness ratio of 60% is considered to be the lower limit for maritime freight transport, which may vary according to the length of the route. Jourquin, The external costs of Belgian inter-urban freight traffic: a network analysis of their internality, Transp.

Definitions and Applications

Basic VRP Variants

G The sum of the requirements of the line and retrieval points visited by a circuit does not individually exceed the vehicle capacity,C. Constraint (8.37) means that each vertex is visited exactly once, and constraints (8.38) and (8.39) are used to initialize the pick-up and drop-off requirements in the vehicles.

Figure 8.1 The scheme of the VRP [2].

Solution Techniques for Basic VRP Variants

Constraint (8.36) ensures that the incoming flow at each customer vertex is equal to the outgoing flow and that the same vehicle enters and leaves the vertex. Because constraint (8.37) forces each vertex to be visited by exactly one vehicle, there necessarily exists an index, for which both sides of Eqn (8.43) will be equal to 1.

Other Variants of VRP

In this problem, each customer is visited by a vehicle based on one of the several depots. SVDRP is a relaxation of VRP where the same customer can be served by different vehicles if it reduces the overall cost.

Table 8.1 OVRP Literature

Case Studies

Vernimmen, A new heuristic for the fleet size and mixed vehicle routing problem with time windows, J. Favero, Scattered search for the fleet size and mixed vehicle routing problem with time windows, Cent.

Table 8.6 VRPSD Literature

Material Handling

The weight of the general cargo must remain within the capacities of the MH equipment and storage facilities. For the design of more accurate MD systems, the interactions between the different components of the MD system design must be verified.

Figure 9.1 The movement of goods [2].

Packaging

Containment: Products must be contained before they can be moved from one place to another to protect them. G The use-by date must be followed by the day or month (or both) by which the product must be consumed.

Figure 9.2 Functions of packaging [15].

S Roll

• Case Study
• The Reasons for Storage Inventory
• The Role of Distribution Centers and Warehouses in Logistics
• Warehouse Location
• Warehouse Design

The package also must not interface with or interfere with the operation of the MEMS device. As part of the production process: In many cases, a production process needs a period of time (without any operation) to complete a product - eg, the production of cheese and wine.

Table 9.3 Current Packaging Parameters, Challenges, and Suggested Possible Solutions for MEMS