Mgmt466

Business Logistics and Supply Chain ManagementBusiness logistics concept 1.Adds analysis of inbound or sourcing side to the outbound physical distribution side 2.Development facilitated by- Economic deregulation of transport in U.S., Rising degree of international or global sourcing, Both create additional opportunities for cost savings through integrated management and coordination 3.Notion that logistics contributes to customer service and revenue generation begins to emerge Supply chain management concept 1.Key underlying principles- Systems analysis and management, 3 key flows: product, information, and cash; Integrated management of extended enterprise; Focus on ultimate consumer of end product 2.Transport: most direct influence on product flow-; Product flow is two ways; Growing importance of reverse logistics systems Transportation refers to the movement of product from one location to another or the movement of the product through the chain to the end consumer. Transportation is a significant component of the costs incurred by most supply chains. International trade is becoming a bigger part of the world's economic activity. Any supply chains success is closely linked to the appropriate use of transportation. Supply chain also use responsive transportation to centralize inventories and operate with fewer facilities. To recognize the transportation in a supply chain, it is important to consider the perspective of all four parties. A carrier makes investment decisions regarding the transportation equipment, i.e. trains, trucks, airplanes, and then makes operating decisions to try to maximize the return from these assets. A shipper, by contrast uses transportation to minimize the total cost, i.e. transportation, inventory, information, sourcing, facilities, while providing an appropriate level of responsiveness to the customer. Transportation adds value time, place, and quantity utility Place utility is where a product or service is made available at the place...