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1. LOGISTICS Chapter 1 Introduction & Definition and logistics function

2. "Logistics means having the right thing, at the right place, at the right time." Military definition : The science of planning and carrying out the movement and maintenance of forces.... those aspects of military operations that deal with the design and development, acquisition, storage, movement, distribution, maintenance, evacuation and disposition of material; movement, evacuation, and hospitalization of personnel; acquisition of construction, maintenance, operation and disposition of facilities; and acquisition of furnishing of services . -- (JCS Pub 1-02 excerpt)

3. Business definition : Logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment. -- (Logistix Partners Oy, Helsinki, FI, 1996 ) Logistics : The science of planning , organizing and managing activities that provide G oods or S ervices . -- (MDC, LogLink / LogisticsWorld , 1997 )

4. TODAY THE TERM “LOGISTICS” IS WIDELY USED TO DESCRIBE “THE PROCESSES OF PHYSICAL DISTRIBUTION” OR THE ART OF MAINTAINING CONTROL OVER WORLD-WIDE SUPPLY-CHAIN BY A COMBINATION OF TRANSPORT, WAREHOUSING SKILLS, DISTRIBUTION MANAGEMENT AND INFORMATION TECHNOLOGY

5. LOGISTICS FUNCTION ORDER PROCESSING WAREHOUSING INVENTORY TRANSPORTATION LOGISTICS FUNCTION

6. ORDER PROCESSING Orders are received daily from sales people. The order Department processes these orders. Warehouses sends the goods out timely. Bills are sent as soon as possible.

7. COMPUTER ORDER PROCESSING SYSTEM Receipt of customer’s order Check credit standing and items in stock Order to ship and bills the customer Updates inventory records Sends a production order for new stock Relays the message back to the sales person that the customer’s order is on its way

8. WAREHOUSING Owned or rent a warehouse. Number, Types of warehouse, and Location. Lowest distribution costs.

9. Distribution centers are used for : 1. Fast moving goods.

10. 2. Fully automated.

11. 3. Advance materials-handling system.

12. Two fundamental distribution strategies: Direct ship – Products shipped directly from the manufacturer to the retailers Intermediate inventory storage points – Manufacturer to Distribution Center to retailers

13. INVENTORY Maintaining Balance between: - Carrying too much inventory and, - Carrying too little inventory When and how much to order. Balancing order-processing cost against inventory carrying cost. Application of ‘Just-in-Time’ Logistics systems ( Week 8).

14. TRANSPORTATION GOALS: Customers satisfaction in terms of: - Choice of carriers. - Delivery performance. - Condition of goods. Factors in selecting the transportation mode: - The nature of goods. - Time needed. - Costs. - Availability and order size.

15. Summary Logistics : The science of planning , organizing and managing activities that provide Goods or Services . Logistics Describes “ THE PROCESSES OF PHYSICAL DISTRIBUTION ” Logistic makes combination of: Transportation. Warehousing Skills. Distribution Management. Information Technology.