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management
Week 12
..physical distribution
..supply chain management
..planning and implementing,
and controlling the physical
flows of materials and final
goods from points of origin to
points of use to meet customer’s
needs at a profit. (kotler)
Supply chain management
Transportation
Materials handling;cross-
docking
Order processing;order cycle
time
Inventory control;
economic order quantity
Warehousing
Packaging
Third party logistics providers
Product availability
Percentage in stock
Order cycle time
Elapsed time from order placement to order
receipt
Distribution system flexibility
Response time to special request
Distribution system information
Speed, accuracy of response
Post-sale product support
Response time in providing product support
Economic order quantity
Inventory control refers to the firm’s
attempt to hold the lowest level of inventory
that still enable it to meet customer
demand.
Inventory carrying costs: financing,
insurance, storage, lost, damaged, stolen
goods---about 25%
Trade-off: inventory carrying costs versus
ordering costs=total costs
EOQ occurs at the point at which total
costs are lowest, by balancing inventory
carrying cost and ordering cost.
Four key areas of interface between logistics
and channel management