Chapter 5 Has to do with the

Chapter 5

Has to do with the flow of goods from its origin to where its consumed Definition – That part of the Supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related info from the point of origin to the point of consumption in order the meet customer expectations

Physical distribution – Concerned with what happens to outbound goods as they move from the organization to its customers

Logistical costs = Information, Transportation, Storage Inventory levels down = Possible stock outs Cheaper forms of Transport = Risk to delivery times and delays. Cheaper storage = Risk higher for fire, theft, damage. . Number of orders = Costs up or down. Number of outlets that are services = Costs up or down

Customer service is the single most important reason for the existence of a supply chain and logistics management

A company needs to determine their Re-order point for a portfolio of products. Product one – Thermal gloves. Lead time = 3 months. Average usage rate = 10 pairs/week. Safety stock = 20 pairs Product two – Sun hat. Lead time 6 weeks. Last summer usage rate = 50 / day. Safety stock = 100 Determine what the combined Re-order point is? Is the Safety stock adequate? Is it correct to combine the Re-order points?

Order Processing Transportation Inventory Management Warehousing Materials handling