Logistics

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Logistics
Merlin Se
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Merlin Se
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Explain the terms „logistic object“, Logistic objects • Logistic deals with objects • Those can be:  Physical objects  Persons  Information, finances, software, licenses • Can be treated as:  Input object  Logistic transformation  Output object
Explain the terms „ logistic product“, Logistic product • Materials ( raw material and supplies, semi-finished products, packaging) • Finished products, commercial/trade goods • Disposal goods • Loading equipment ( containers, pallets) working assets/capital
Explain the terms Logistic Transformation Logistic Transformation “PTP” • Place: change of location • Time: change in time • Physical attributes: change in weight, color, shape, packaging, labelling
Explain Logistic Processes Logistic processes • Five basic logistic processes 1. Transport 2. Transshipment (loading/unloading, sorting) 3. Storage (warehousing, inventory management) 4. Handling/processing 5. Information (planning, management, control, ICT)
Explain Logistic Systems Logistic systems • Resources:  Buildings, equipment/machines, vehicles, employees, means of financing, patents, contracts • Organization  Structure; allocation of tasks, responsibilities, and instruction rights, sequences)
Name the three important logistic objectives and assess their relevance. 1. Market perspective • Type, quality and quantity of services • Customer utility/expectations with regard to delivery a. Length of time b. Readiness c. Reliability d. Intactness e. Flexibility 2. Financial perspective • Efficiency a. Improvement of run-through times and capacity utilization, reduction of stocks and faults b. Reduction of cost of capital, operating costs (equipment, staff, energy) 3. Structural perspective • Dynamic flexibility
Describe the system, process and functional approach of logistics. Which one is, in general, to be prefered? Give preconditions and reasons for your answer. 1. Systems approach • Open system = company • Elements: • Procurement • Production • Distribution • Disposal • Relations • Exchange of products/services/information • Logistic-related activities: • Partial system “logistics” 2. Process approach (horizontal perspective) • Relations between logistic processes of the different core segments 3. Functional approach (vertical perspective) • Focus is on the specific logistic service functions of each single core segment of the supply chain • Procurement and procurement logistics • Production and production logistics • Distribution and distribution logistics • Disposal and disposal logistics
Describe the 4 Steps of logistic planning 1. Define objectives and draw up a list of processes/activities 2. Determine output and input (type, quantity, time, location, quality, price of products) 3. Determine affected core segments of the supply chain 4. Determine the modification of resources/organization
Describe the 4 parameters of logistic planning 1. Horizon (short term, long term) 2. Periods (years, months, weeks, days, hours) 3. Objects (exactness of characteristics) 4. Degrees of freedom (structuring of the logistic systems)
What are the three models of logistic planning 1. Time-series models  Predictions are based in regression analysis/OLS  E.g.: demand for factors of production, analysis of stock 2. Simulation models  Experiments run by computer software in order to reproduce complex dynamic logistic systems  Results depend on data  No optimization  E.g.: storage, production 3. Optimization models  Optimum solution based on variables/data, constraints and objective function  E.g.: route planning, minimization of use of resources
Demonstrate the procedural steps of the ABC analysis. Give an example from logistics (and be able to solve exercises). ABC-Analysis • Is the optimum organization of internal logistic activities/processes • Procedure for classifying a number of objects in classes A,B and C (quantitative criterion) • Possible criteria: total costs, customer demand, turnover • Procedure: 1. Sort objects in descending order 2. Calculate cumulative values 3. List up in classes • Class A: 0-80% • Class B: 80-95% • Class C: 95-100%
Discuss the main objective of internal transport planning. Describe and analyze possible logistic transport processes. Internal transport planning • Is the efficient and effective change of location between receipt of goods, storage, production/processing, and sending out goods in a company itself • The internal transport planning pays attention on o transported goods  Solid (cargo, small consignments, less-than-carload, wagonload/carload, bulk goods)  liquid  gaseouso transport route  line  plane  space o transport intensity  quantity per time period o means of transport  fork-lift truck  crane  conveyor belt  rollers • processes of internal transport planning o transport/shipment o collecting/bringing goods togetherin o separate goods o buffer goods (temporary storing) o distribute goods
Describe the concept of strategic supplier relationship management (SRM)  Supplier Relationship Management (SRM) 1. Optimization of: a. Number of suppliers b. Dependence of suppliers c. Processes d. Capacity and capability e. Reliability of supply (distance, time) f. Costs 2. Elements of SRM a. Scouting  Survey of market for potential suppliers b. Selection  Identification of suitable suppliers considering characteristics, procedures, technologies, etc. c. Valuation  Assessment of suppliers by • Price/quality/service • Terms of delivery • Availability/reliability • Potential for innovation/cooperation • Steadiness of supply and price
In what way can product structures be considered a determinant of production logistics a. Product development • Planning of production, logistics and sale must be optimized simultaneously b. Product structure • How many different products? • Production volume of each product? • How many components per (semi)finished product? • Are components used for one or many (semi)finished products? • Logistic intensity (ABC products) c. Production structure • Production processes i. Flow of material and information ii. Production logistics
Describe and assess the principal production structures, e.g., shop assembly, assembly line, and construction site assembly. Analyze the relevance of single- and multi-stage production and of the lot size for the complexity of production logistics • Shop assembly o All similar working assets are concentrated at one location o Location of assets determines production sequence o Performing principle • Assembly line o Location of assets is result of production sequence o Conveyor line production (direct connection) o Line production (no direct connection) o Object principle • Construction site assembly a. Assets are transported to location of production b. Object principle
What aspects may have an influence on corporate strategies for disposal logistics. Comment on their relevance • Ecological problems o Quantitative and qualitative detoriation of resources (sustainability) • Non-availability of disposal sites, higher disposal costs • European/national regulations o Principles  Precaution, responsible party is liable for damage, polluter pays • Change in social values (environmental responsibility) o Corporate Social Responsibility (CSR) • Demand for ecologically harmless products, production and transport • Marketing and sale concepts (labels, auditing)
Assess the main inventory management strategies • Degree of centralization o Number of estates/buildings, volume/efficiency, capacity utilization/stock balancing, number of staff, organization, response time, cost o Transport time, flexibility, customer relations • Own or third-party inventory o Decision criteria  Cost of capital (CAPEX), operational cost (OPEX), personnel, expertise, capacity utilization, dependency • Automation (degree) • Ordering of stock (procedure) • Inventory accounting systems
Name and explain two exemplary assessment criteria of the categories „law“, „infrastructure“, „cost“, and „performance“ for the selection of modes of transport. • Law o Working time o Breaks/recreation o Qualification o Driving bans o Hazardous goods o Environmental protection o Technical aspects o Taxes • Infrastructure o Availability o Connectivity and location o Capacity o Quality oClimate/weather oPublic attitude • Cost o Cost of capital o Fuel, maintenance/repairs of vehicles o Labour cost o Infrastructure charges o Handling, transshipment o Other logistics cost o Taxes, customs o Insurance o regulation • Performance o Price o Transit time o Reliability, flexibility (time/location, quantity/quality) o Safety/intactness o Availability, frequency o Ability to bundle high volumes/weights/values o Information, additional services
Explain the method of life cycle assessment with regard to green logistics, and apply it to a self-selected business sector (5). • Total life cycle of a product o Collecting raw material o Transport activities o Warehousing o Production o Disposal • Method 1. Definition of goods and scope • Define products, functional basis of comparison, level of detail 2. Inventory analysis • Energy, raw materials, different emissions, types of land use 3. Impact assessment • Effects of resource use and emissions grouped and quantified 4. Interpretation • Report of results, need and instruments to reduce impacts are evaluated
Give a few examples for greening  Transport (6),  Storage (7), and  Procurement, production, and distribution logistics (8). Transport • Reduction of transport distances and frequencies, optimization of transport networks • Optimum use of loading capacity and transport fleet • Use of other modes of transport, intermodal/combined transport • Alternative fuels, new technologies/engines, optimization of fuel use • Aerodynamics of vehicles • Change of behavior behind the wheel Storage • Optimum use of capacity of warehouses • Reduction of lighting, use of energy-saving light bulbs • Use less material and resources for construction • Optimization of energy use • Use of renewable energy • Improvement of water efficiency (re-use of water) Procurement/Production/Distribution • Reduction of use of resources and hazardous/toxic materials • Use of energy-saving assets aHind production processes • Select “sustainable” suppliers and customers • Labeling of products, information about carbon footprint • Innovative approaches for recycling and waste management • Avoid or modularize packaging • Introduction of CSR
Explain the meaning of SCM What is Supply Chain Management? 1. Inclusion of all market players (suppliers, wholesaler/retailers, subcontractors, customers) 2. Integration of all core segments (procurement, production, distribution, disposal) 3. Common organization of all logistic processes/activities plus resources and organization 4. Optimization of all interfaces (ICT, transshipment)
What is your understanding of the Bullwhip Effect? Give an example from a selected business sector (6-7). • Change in demand at consumer level → build-up of distortions in demand and supply in upstream segments of the supply chain • Causes o Isolated profit maximization segments of supply chain o Time lags: information about downstream demand change collected over total period, change of own demand materializes in next period o Own demand contains mark-up or mark-down for uncertainty • Example o Brewery change in demand at consumer level → change in demand of retailer → change in demand of wholesaler →change in demand of distributor → change in production of brewery
Portray and analyze one self-selected organizational structure typical for the hierarchy of authority in logistics (13-15). • Divisional structure o + coordinated functions, customer relations, improvement of skills o – redundancy (waste of resources because of departments with same tasks), reduction of specialization
How do you qualify logistic skills and knowledge in HRM • Comprehensive management skills o Communications, team working o Controlling/accounting o Market/customer understanding, marketing sale o Information technology/systems (just-in-time management, transport/warehouse management systems, resource planning, RFID) o Asset management, process engineering • Cross-functional SCM/logistic skills o All segments of supply chain, all main processes, interfaces • Specific logistic skills in one discipline
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