Chapter 16: Logistics/Supply Chain Control

Type of Control System:

Open-Loop Systems	Closed-Loop Systems	Modified Control Systems
·         Common systems for controlling logistics activities ·         Important feature human invention between the action of comparing actual and desired performance and the action to reduce the process error. ·         Flexibility and low initial cost ·         Manager can prescribe the type of information needed for control, the error tolerance	·         Refers to servomechanisms, regulator and controller ·         The automatic control of inventories is the outstanding success to date	·         Manager are reluctant to transfer extensive control of an activity ·         Manager may even have a degree of distrust for computers and mathematical models. ·         Manager may at times substitute for the decision rules ·         Combination from open-loop and closed –loop.

Audit; logistics audit is a periodic examination of the status of logistics activities

Total Function Audit:

o   Demand

o   Customer service

o   Product characteristics

o   Logistics costs

Pricing policy; transfer the responsibility and cost of transportation to the buyers, thus taking decisions on important logistics costs element out of their own hands.

Freight Bill Audits: Controls of transportation costs, many firms have found it worthwhile to audit their freight bills.

Corrective Actions

Minor Adjustment	Major Replanning	Contingency Plans
o   Performance from desired performance will occur and can be anticipated o   E.g. the transportation activity of service selection, routing, and scheduling will vary over time items of its costs.	o   Sweeping reevaluation of the logistics system. o   Major changes in logistics environment o   Involves a recycling through the management planning process	o   Possibilities of dramatic changes in the activity performance level

Chapter 15: Logistics/Supply Chain Organization

Marketing	Finance	Operation
1.Sales	1.Inventory carrying cots	1.Plant/work-in-process inventories
2.Advertising	2.Information processing	2.Production scheduling
3.Customer Service	3.Return on investment	3.Product quality
4.Order entry		4.Purchasing
5.Field Finished Goods inventories		5.Traffic
6.Distribution channels

Importance of Organization to Logistics/SC

ü  Extractive industries

ü  Service industries

ü  Marketing industries

ü  Manufacturing industries

Organizational Choices

Informal Organization	Semiformal Organization	Formal Organization
To achieve coordinate among logistics activities for their planning and control	To coordinate projects that involves the supply chain and that cover several functional areas	Establish clear lines of authority and responsibility

Organization Orientation

ü  Process Strategy

ü  Market Strategy

ü  Information Strategy

Organization Positioning

ü  Decentralization Versus Centralization

ü  Staff Versus Line

ü  Large Versus Small

Partnership Benefits:

ü  Reduced cost and lower capital requirement

ü  Access to technology and management skills

ü  Improved customer service

ü  Competitive advantage such as through increased market penetration

ü  Increased access to information for planning

ü  Reduced risk and uncertainty

Alliances

·         A built on trust, a sharing of information that aids logistics performance, specific goods to achieve a higher level of logistics performance than can be achieved alone.

Contract Logistics

·         Using the service of other companies to support their own logistics activities.

Chapter 14: The Network Planning Process

Data for Network Planning:

Ø  Data Checklist;  a substantial database that is derived from many sources

Ø  Data Sources; generate data needed for logistics planning (Business Operating Documents, Accounting Reports, Logistics Research, Published Information, Judgment)

Ø  Data encoding; several techniques that have been used to code data. (Product Coding, Geocoding)

For-Hire Transport

Ø  Actual driving route

Ø  Equivalent driving routes

The Tools for Analysis

Choices for Modeling:

Ø  Chart, Compass, and Ruler Techniques

Ø  Simulation Models

Ø  Heuristics Models

Ø  Optimization Models

Chapter 13: Facility Location Decisions

Location decisions involve determining the number, location, and size of the facilities to be used.

Ianya bermaksud di dalam bab ini menerangkan tentang kata putus yang harus di buat dari segi bilangan, tempat dan saiz fasiliti yang digunakan. Sebagai contoh, setiap tempat yang dirancang perlu mempunyai sebab2 yang tertentu mengapa ianya dilakukan.

ü  Classification of Location Problems involve five (5) factors

1. Driving Force

·         Driving force menekankan tentang kenapa kita pilih tempat yang kita pilih tersebut. Semua faktor2 yang berkaitan kita kenalpasti dan pastikan ianya mendatangkan faedah kepa kita menjalankan perniagaan.

2. Number of facilities

·         Locating one facility is a considerably different problem from locating many facilities at one time. Penempatan satu fisiliti lebih memudahkan daripada penempatan yang banyak. Ini adalah kera, dengan terlalu banyak facility location, kos akan meningkat di samping masalah yang rumit akan timbul dengan banyak.

3. Discreteness of choises

·         Pilihan location yang tepat memainkan peranan yang amat besar agar kita tidak rugi. JIka proses pemilihan dilakukan lebih daripada sekali, kerugian masa, wang dan tenaga akan merumitkan lagi keadaan sesebuah syarikat.

4. Degree of Data Aggregation

·         Dalam menangani masalah kemasukan data, pengurusan yang bijak harus dilaksanakan. Semakin mendalam maklumat data yang disediakan, semakin rugi tanggungan yang di alami oleh sesebuah syarikat tersebut. Oleh itu, peurusan pengisian data aggregation harus di buat dengan teliti dan saksama dan selaras dengan keupayaan sesebuah syarikat

5. Time Horizon

·         The time nature of location methods is to be static or dynamic. That is static methods find locations based on data for a single such a one year. Meanwhile, methods that handle multiperiod location planning are referred to as dynamics

Chapter 11: The Storage and Handling System

Di dalam chapter 11, kita akan belajar tentang storage di mana ianya merupakan kawasan untuk simpanan barang di dalam gudang.

Rajah dibawah ini menunjukkan sebab perlunya ada storage;

Now, jom kita ketahui jenis2 gudang yang ada untuk pembelajaran kita kali ini...

Type of warehouses	Description
1. Commodity warehouses	These warehouses limit their services to storing and handling certain commodities, such as lumber, cotton, tobacco, grain, and other products that easily spoil.
2. Bulk storage warehouses	Some warehouses offer storage and handling of products in bulk, such as liquid chemicals, oil highway salts, and syrup. They also mix products and break bulk as part of their services
3. Temperature-controlled warehouses	It control storage environment. Perishables such as fruits, vegetables, and frozen foods, as well as some chemicals and drugs, require this type of storage
4. Household goods warehouses	Storage and handling of household items and furniture are the specialty of these warehouses.
5. General merchandise warehouses	These warehouses, the most common type handle a broad range of merchandise
6. Miniwarehouses	These are small warehouses, having unit space from 20 to 200 square feet and are often grouped together in clusters.