Badea George-Cosmin Dr inż. Zdzisław Pólkowski Logistics

Badea George-CosminDr inż. Zdzisław Pólkowski

Logistics

http://a2b.hr/

Content

• Introduction• Why logistics matters• Matching Supply and Demand• Inventory Management• Continuous replenishment• Mathematical Programming• Networks and Distribution systems• Facilities location

• Logistics expenditures typically range from 5 to 35 percent of sales depending on the type of biz, area of operation and weight/value of the product.

• The costs of logistics in India is 4% of the total value of goods.• Firms with world class logistical competency can gain competitive

advantage by providing customers with superior service.

• The overall goal of logistics is to achieve a targeted level of customer service at lowest possible cost.

• Logistics Management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information.

• Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources from the source of production to the marketplace.

Introduction

http://www.logisticsworld.com/logistics.htm

Why logistics matters

http://www.thehindubusinessline.com/markets/commodities/why-elogistics-matters-in-agribiz/article6909551.ece


• In the past, logistics was considered a custodial activity. Storekeepers were the custodians of supplies stored in small storerooms and large warehouses.

• Consequently, the science of logistics, and the people who make the health logistics system work, were not considered an important part of family planning, HIV and AIDS, or vaccination programs—to name only a few.

• Fortunately, as time passed, more and more program managers have come to understand how important logistics is to a program’s success.

• The goal of a health logistics system is much larger than simply making sure a product gets where it needs to go. Ultimately, the goal of every public health logistics system is to help ensure that every customer has commodity security.

• Well-functioning supply chains benefit public health programs in important ways by:

a) increasing program impactb) enhancing quality of care c) improving cost effectiveness and efficiency.

http://deliver.jsi.com/dlvr_content/resources/allpubs/guidelines/LogiHand.pdf


1. Logistics increases program impact

• If a logistics system provides a reliable supply of commodities, more people are likely to use health services. Customers feel more confident about the health program when they have a constant supply of commodities it motivates them to seek and use services.

• Notice that, as the availability of a mix of contraceptive methods improves, the contraceptive prevalence rate (CPR) for the public sector increases. When a choice of contraceptive methods is available in health facilities, more women use contraception.



2. Logistics enhances quality of care:

• Well-supplied health programs can provide superior service, while poorly supplied programs cannot. Likewise, well-supplied health workers can use their training and expertise fully, directly improving the quality of care for clients.

• Customers are not the only ones who benefit from the consistent availability of commodities. An effective logistics system helps provide adequate, appropriate supplies to health providers, increasing their professional satisfaction, motivation, and morale. Motivated staff are more likely to deliver a higher quality of service.



3. Logistics improves cost efficiency and effectiveness:

• An effective supply chain contributes to improved cost effectiveness in all parts of a program, and it can stretch limited resources. Strengthening and maintaining the logistics system is an investment that pays off in three ways:

a) It reduces losses due to overstock, waste, expiry, damage, pilferage, and inefficiency;

b) it protects other major program investments;

c) it maximizes the potential for cost recovery


Matching Supply and Demand

http://dictionary.reference.com/browse/supply+and+demand

• In classical economy theory, the relation between these two factors determines the price of a commodity. The relationship is thought to be the driving force in a free market. As demand for an item increases, price rise. • When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down. Modem economic theory proposes that many other factors affect price, including government regulations, monopolies, and modern techniques of marketing and advertising.

Inventory Management

http://www.barcodesinc.com/articles/what-is-inventory-management.htm

• Inventory management is all about specifying the size and placement of stocked goods. • It is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods.

• Inventory management also concerns with carryng costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory available physical space for inventory.

Inventory Management

http://www.businessdbbuilder.com/inventorymng.html

Continuous replenishment

http://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-terms/12476-continuous-replenishment-program.html

• In continuous replenishment the inventory levels at the customer level, or the retailer in retail sector, are maintained by the vendor continuously and the goods are replenished as per the agreed upon level. This calls for good synergies between all the parties involved – producer, distributor, vendor, retailer and customer. At least one party monitors the inventory level of the other party.

• In some cases the vendor keeps a track of the customer’s inventory levels and based on the real time data or forecasted data, the goods are replenished. In other cases the customer himself keeps in touch with the vendor and continuously gets the replenishment.

• This is in contrast with the traditional inventory management in which the goods are procured by purchase orders and the distributor or the vendor processes these orders to supply the goods.


Mathematical Programming

http://www.eudoxus.com/lp-training/1-what-is-mathematical-programming

• Mathematical Programming (MP) is the use of mathematical models, particularly optimizing models, to assist in taking decisions.• The term 'Programming' antedates computers and means 'preparing a schedule of activities'. It is still used, for instance, in oil refineries, where the refinery programmers prepare detailed schedules of how the various process units will be operated and the products blended. Mathematical Programming is, therefore, the use of mathematics to assist in these activities.• Being so ambitious does have its disadvantages. Mathematical Programming is more restrictive in what it can represent than other techniques. Nor should it be imagined that it really does find the best solution to the real-world problem. It finds the best solution to the problem as modelled. If the model has been built well, this solution should translate back into the real world as a good solution to the real-world problem. If it does not, analysis of why it is no good leads to greater understanding of the real-world problem.


Mathematical Programming


• The key characteristics of MP are shown in the diagram below.

Model Optimum

SolutionProblem

Abstract Project

Optimize


Networks and Distributed Systems

https://www.csi.ucd.ie/content/networks-and-distributed-systems

• Distributed Systems consists of a collection of autonomous computers, connected through a network and managed with distributed system software that coordinates their activities so that users perceive the system to be a single, integrated computing facility.

• Advances in this area have allowed us tackle computational expensive tasks without the associated financially expense of super computing resources. Related activities in this sub-theme include: Parallel computing which looks at the management of tasks across multiple processors;

• Grid computing which emphasises the distribution of these task across separate computers on the Internet, thus mitigated the need for expensive supercomputers; and Heterogeneous computing which focuses on the complexities of distributing tasks across heterogeneous computing environments




• Next Generation Networks comprise of a high-capacity optical fibre core with a diverse set of wired and wireless access options.

• These new networks give rise to many interesting research challenges including how to maximise the performance of new wireless access technologies and how to deliver large amounts of high quality video in a scalable manner.

• CSI researchers are developing new wireless access solutions based on multi-hop wireless network architecture to address the complex problems associated with the delivery of quality services in an urban environment.



http://lycog.com/distributed-systems/challenges-distributed-systems/

Facility Location

http://www.managementstudyguide.com/facility-location.htm

• If the organization can configure the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive advantage following are the critical factors:

a) Customer Proximity: Facility locations are selected closer to the customer as to reduce transportation cost and decrease time in reaching the customer.

b) Business Area: Presence of other similar manufacturing units around makes business area conducive for facility establishment.

c) Availability of Skill Labor: Education, experience and skill of available labor are another important, which determines facility location.

Facility Location

http://www.managementstudyguide.com/facility-location.htm

c) Free Trade Zone/Agreement: Free-trade zones promote the establishment of manufacturing facility by providing incentives in custom duties and levies. On another hand free trade agreement is among countries providing an incentive to establish business, in particular, country.

d) Suppliers: Continuous and quality supply of the raw materials is another critical factor in determining the location of manufacturing facility.

e) Environmental Policy: In current globalized world pollution, control is very important, therefore understanding of environmental policy for the facility location is another critical factor.

Surces

•http://www.logisticsworld.com/logistics.htm•http://deliver.jsi.com/dlvr_content/resources/allpubs/guidelines/LogiHand.pdf•http://dictionary.reference.com/browse/supply+and+demand•http://www.barcodesinc.com/articles/what-is-inventory-management.htm•http://www.businessdbbuilder.com/inventorymng.html•http://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-terms/12476-continuous-replenishment-program.html

•http://www.eudoxus.com/lp-training/1-what-is-mathematical-programming•https://www.csi.ucd.ie/content/networks-and-distributed-systems•http://lycog.com/distributed-systems/challenges-distributed-systems/•http://www.managementstudyguide.com/facility-location.htm•http://www.thehindubusinessline.com/markets/commodities/why-elogistics-matters-in-agribiz/article6909551.ece













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Badea George-Cosmin Dr inż. Zdzisław Pólkowski Logistics