JW logandSCM.ppt

8/20/2019 JW logandSCM.ppt

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INTRODUCTION TO LOGISTICS ANDSUPPLY CHAIN MANAGEMENTProf. Jarosław Witkowski P!"

Vice -rector for International Co-operation

Wroclaw University of EconomicsKomandorska Street 118/1!" #$-$%#

Wroclaw" &oland 'el( !!%8)1$*8!1#1" Cell p+one,

%8#!1!!!$ E-mail, .witae(.0ora(pl

mailto:[email protected]:[email protected]


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Lecture outline

1.Definition and main activities of business logistics

2. Trade-offs analyses

3. Idea of supply chains

4. upply !hain "anagement matri#$. upply chain performance and efficiency

improvement %!&' and (!) models*

+. ,apanese and uropean supply chain netor/s

0. imple & formula. !enter of (ravity Techniue


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Logistics (according to CLM) is the process of

planning, implementing and controlling theefficient, cost-effective flow and storage of rawmaterials, in- process inventory, finished goodsand related information from point of origin to

point of consumption for the purpose ofconforming to customer requirements

The mission of logistics is to get the right goodsor services to the right place, at he right time, andin the desired condition and quantity in relation tocustomers order


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ain lo0istics activities and decisions, cooperate wit+ marketin0 to set c2stomer

service levels" facility location decisions" transportation activities 3e0( transportation

mode selection" ve+icle sc+ed2lin0" carrier

ro2tin04" inventory mana0ement 3inventory s+ort -termforecastin0" plannin0 and control" cooperatewit+ prod2ction to calc2late E56" se72ence andtime prod2ction 4"

information collection and ows and orderprocessin0" ware+o2sin0 and materials +andlin0" packa0in0 and packin0(


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Cost- reven2e trade- o9s

&ro:ts at di9erent levels of c2stomerserviceRevenue, costs, profit

Logistics costs

8! "#! "!

Customer service

Revenue


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Inventory costs trade- o9

Inventory carrin0 costs 3space costs"capital costs" inventory risk andservices costs4

&roc2rement costs 3ac72isition costs"transportation costs" man2fact2rin0and +andlin0 costs4

52t ; of ; stock costs 3lost sales and


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upply chain %since 56s of 77c.*

In broader sense 8! is any combination of processes9activities9 relationships and pathays along hichproducts9 services9 information and financial transactionsmove in and beteen enterprices: %(attorna 255+9 p. 2*

In narro sens ! is restricted to materials andinformation flos from suppliers9 through manufacturesand distribution centers to retailers and final customerse.g. ". !hristopher %255$* defines ! 8as a netor/ of

connected and independent organi;ations mutually andcooperatively or/ing together to9 control9 manage andimprove the flo of materials and informations fromsuppliers to end users:.


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Co2ncil of S2pply C+ain

ana0ement &rofessionals 3formerCo2ncil of =o0istics ana0ement 4,>S2pply C+ain ana0ement is t+esystemic" strate0ic coordination of

t+e traditional


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@ccordin0 to t+e new de:nitionof CSC&

SC encompasses t+e plannin0 andmana0ement of all activities involvedin so2rcin0 and proc2rement"

conversion" and all lo0isticsmana0ement activities 3incl2din0coordination and colla


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ASCB 3=am


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S2pply C+ain 5perations eference odel

Al < l S l C+ i


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Alo


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Fased on t+e prod2ct ; relations+ip matriGCooper and Sla0m2lder 31" p(1!4distin02is+ed fo2r key decisions andactivities areas in t+e inte0rated s2pplyc+ains" s2c+ as,- con:02ration of prod2ct and network"

w+ic+ covers t+e decisions concernin0 t+emain r2les of cooperation"- formation of t+e prod2ction network"mainly t+e c+oice of prod2ction facility and

ware+o2sin0 locations as well as t+eircapa


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'+e prod2ct- relations+ip SCmatriG


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- E I R E T S U

JIT

TM

-a'/a'

JIT

TM

-a'/a'

JIT

TM

-a'/a'

JIT

TM

-a'/a'

S2pplier &rod2cer W+oleseler etailer

- a i 0 % '

Keirets2 and Kaien as a so2rce of t+e development of S2pply C+ain ana0ementin Hapan


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'+e traditional role and place of small :rms wit+ininte0rated s2pply c+ains was mostly limited4,

- deliverin0 rawmaterials" parts or mod2les fort+e :nal 0oods prod2cers"- deliverin0 c2stomer 0oods to w+olesalers orsellin0 small 72antities of t+is 0oods to t+e :nal

c2stomers"- providin0 transportation and forwardin0services" - man2fact2rin0 0oods and providin0 ot+er

services for market nic+es w+ic+ are consideredas not eno20+ pro:ta


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'a


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ew vs( 'raditional lo0istics

Inte0ration 3wit+in or0aniationalstr2ct2res" comp2ter systems" s2pplyc+ain and network4

Strate0ic approac+ 52tso2rcin0

Alo


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E56 simple form2la 3Larris"Wilson4

Economic order 72antity form2la +elpsto :nd t+e optimal n2m


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ain ass2mptions3disadvata0es4 of E56 form2la Demand and orderin0 cost are constant

aGim2m inventory is e72al to order72antity"

new order is delivered w+en t+e inventory isero

=ead time is :Ged

o disco2nt is avalia


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'+e re72ired parameters tocalc2late E56,

D ; demand 72antity 32nits per year" mont+" day4 & ; p2rc+ase cost per eac+ item S ; :Ged cost per order i ; inventory carrin0 cost rate related to capital

invested in inventory 6 ; order 72antity D/6 ; n2m


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Low to calc2late E56


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Bacility location factors,

A.W%/%r Po&a'"%r T!#'%' 1&assi1a& t!%ori%s

=a


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@nalytical tec+ni72es forfacility location decisions,

Le2ristic approac+ 3e(0( factor ratin0


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Center of 0ravity 3to :nd sin0lelocation t+at minimies of

transportation cost4


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coordinates for CQ and CRt+enew facility locationM3Fall2"

p(%8)4 &arameters, Vi ; vol2me at point i

i ; transportation rate to or from point i

Qi and Ri ; coordinates of eGistin0 locations

Vi i Qi Vi i Ri

CQ N -------------------- CRN -------------

Vi i Vi i


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@ss2mptions 3disadvanta0es4of center of 0ravity tec+ni72e

'ransportation rate is a linearf2nction of transported vol2me32nits" tons" etc(4 and t+e travelin0

distance" It doeset consider real travelin0

distance w+ic+ is depended on t+e

roads availa


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eferences,

T1 Fall2 (L(, F2siness lo0istics mana0ement" &rentice LallInternational" ew Hersey 1

T C+ristop+er (, =o0istics and S2pply C+ainana0ement( Creatin0 Val2e ; @ddin0 etworks" &renticeLall !!#

T$ Aattorna H(, =ivin0 S2pply C+ains( Low to o

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JW logandSCM.ppt