Chapter 16:
Logistics/Supply Chain Control
Type of Control System:
Open-Loop Systems
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Closed-Loop Systems
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Modified Control Systems
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·
Common systems for controlling
logistics activities
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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
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·
Refers to servomechanisms, regulator and controller
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The automatic control of inventories is the outstanding
success to date
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·
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.
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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
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Major Replanning
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Contingency Plans
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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.
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o Sweeping
reevaluation of the logistics system.
o Major changes
in logistics environment
o Involves a
recycling through the management planning process
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o Possibilities
of dramatic changes in the activity performance level
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