Logistics planning

Introduction
Logistics is considered to have originated in the military's need to supply itself with arms, ammunition, and rations as it moved from a base to a forward position Definition of the term logistics is: The branch of military science having to do with

procuring, maintaining, and transporting material, personnel, and facilities.

Logistics is the process of planning, implementing, and controlling the effective and efficient flow of goods and services from the point of origin to the point of consumptio

Logistics planning

1.Level of planning
Strategic planning :
one year. one year. usually more than

Tactical planning :
decision making.

usually less than

Operational planning :

is short-range

Major planning areas

Four major problem areas: a. customer service levels b. facility location c. inventory decisions d. transportation decisions

3. Conceptualizing the logistics planning problem

Links: the links of the network represent the movement of goods between various inventory storage points. Nodes: the storage points retail stores, warehouse, factories or vendors. Logistics system : include product flow and information flow.

Facility Decisions
Need for warehousing

Modern warehouses- equipped with sophisticated material handling equipment

Types of outbound logistic strategies

Direct shipment

Warehousing

Cross docking

Warehousing- Important decisions

1. No. of warehouses Factors affecting:-Cost of lost sales

-Inventory costs
-Warehousing costs -Transportation costs 2. Warehousing locations

Inventory Management Decisions

What does inventory include?
Inventory includes the materials purchased for production, materials used for production and finished goods after production. That's if your in manufacturing sector. In merchandising, inventory includes goods purchased that are available for sale. In service business, such office supplies and likes comprise the account inventory

Need for inventories Improved customer service Reduces cost Smoothens the operations of logistics system

Transportation- Important decision Areas

Mode selection Vehicle routing and scheduling Freight Consolidation

Factors affecting Transportation Cost:1. Density of product 2. Stow ability 3. Ease of handling