Professional Documents
Culture Documents
Logistic
Logistic
Logistic
*inventory as percentage assets Capital Cost- Interest or opportunity cost focuses upon
what having capital tied up in inventory cost company.
Rationale for carrying inventory
Storage Space cost- include handling cost associated with
Logistic Channel-indicates a number of points in logistic moving products into and out inventory and storage cost
channel at which accountable amounts of inventory may such as rent heating and lighting.
be found.
Service Cost-includes insurance and taxes
Potential Inventory Locations
Inventory Risk Cost- reflects the very real possibility that
Supplier 1 Supplier 2 Supplier 3 Supplier 4 inventory peso value may decline for reason largely
beyond capital control
Warehouse
2 Expected Stock out Cost- the cost of not having product
Plant/Manufacturing available when a customer demands or needs it.
*Transportation Savings Dead Stock-has no value for business purposes, firms will
ship dead stock to the location where it demands existed.
*Production savings
4 EVALUATING THE EFFECTIVENESS OF CAOMPANY’S Ownership Decision
APPROACH TO INVENTORY MANAGEMENT
*Backordering/expediting
Services- public warehouse is a comprehensive and Pallets- provide a base to hold individual items together.
sophisticated industry today, willing and able to offer
variety of services beyond the general storage function. Other material handling equipment
4 Factors affecting the number of warehouse Conveyors-this system decrease handling cost increase
productivity of workers and equipment
1. Need for customer service
2. Inadequate transportation Cranes
3. Favoring decentralized warehousing is small
Bridge cranes- are more common in physical
quantity buyers
supply warehouses or where the companies have to
4. Favoring decentralized warehousing would be
move.
instances when customers allow insufficient
times before being stock out. Stacker Cranes- they can function in narrow isle
effective utilizing warehouse cube capacity.
CHAPTER VI-Material Handling and Packaging
Other picking and storage equipment
Material handling- efficient short distance movement
that usually takes place within the confines of building Picker-to-part- the order picker must travel to the pick
such as plant or warehouse and between building and location within the aisle
transportation agency
Bin Shelving- the oldest and more basic storage system
4 dimension of material handling available for storing small parts.
*Movement- the movement aspects of material handling Modular Storage drawers-are cabinets and further
involves the conveyance of goods (raw materials, semi- subdivided into compartments
finished goods and finished goods)into and out storage
facility as well as within such facilities Flow Racks-store items in cartons having uniform size
and shape
* Time- the time dimension of material handling is
concerned with readying goods for production or for Order Picking Vehicle- order picking trucks and person
customer filling abroad storage and retrieval (s/r) vehicles increase order-
picking rates and maximize cubic space utilization
*Quantity- the quantity issue addresses the varying
usage and delivery rate of raw materials and finished Part-to-picker- the pick location travels through an
goods respectively automated machine to the picker.
*Space- Material handling equipment consume space in Carousels- are shelves or bins link together through a
the warehouse and plant. mechanical device that stores and rotates items in order
picking.
Objective of Material Handling
Mezzanines- doubled layer storage system that utilizes a
1. Increase effective capacity second level bin shelving modular storage cabinets above
2. Improve operating efficiency first storage levels.
3. Develop effective working condition
4. Reduce heavy labor Types of material handling equipment-a design
5. Improved logistic service perspective
6. Reduce cost
Flexible Path- includes manual hand trucks all forklift
Dock Equipment truck and other picking equipment. Its design advantage
is versatility and flexibility. More labor intensive
Forklift-a very versatile piece of equipment that can
provide a very reasonable cost. Warehouse usually use Continuous-flow-fixed path- includes draglines and
forklift in conjunction with pallets conveyors. These are usually very efficient and highly
automated. Investment is high
Dock Bumpers- are molded rubber piece that protect the
building from impact of a docking trailer Intermittent-flow fixed path-includes cranes and
monorails. With the ability to stop unneeded equipment.
Dock Levelers- level out the angle between the dock
and the trailer that providing a ramp that enables the Equipment selection factors
forklift to drive into the trailer safely.
*physical attributes of product and packaging
*characteristic of physical facility b. Disadvantage
i. Accessibility- not enough rail cars
*time requirements and trucks to meet demands and
needs
Role of packaging
ii. At least one other mode of
1. Identify product and provide information transport must be used
2. Improve efficiency in handling and distributing iii. Management has few efforts to
packages update equipment
3. Customer interface a. PIGGYBACK
4. Protect product SERVICES- a flat
car design to
Packaging Material carry pre-loaded
trucks
1. Softer material 3. Pipelines- are exclusively used for the shipment
2. Plastic of liquids and gases and so are of a little use for
3. Environment manufacturers
4. Recycling 4. Water Transportation- cheapest form of
transportation as large bulk of commodities can
Packaging Selection
be ship at one time
Physical Dimension- one factor that affects a package a. Two types of ocean vessels
physical dimension is product characteristic-things such i. Passengers lines-which primarily
as size, shapes, and weight transport people
ii. Freighters- or cargo vessels
Material- a products physical dimension will affect a which may include tankers and
company’s packaging material choice. refrigerated vessels.
a. Fishy back-
Unitizing or palletizing- is the process of accumulating service identical
and stacking cases or other containers to form a single to piggyback
larger unit. except that the
truck bodies are
CHAPTER VII-Transportation System
loaded into
Transportation- is actual transfer or movement of goods vessels instead of
from one place to another creating place and time utility. flat cars
b. Containerization
Modes of transportation - is use to large
standards sized
1. Land Transportation- our focus will be on truck vans for shipping
as buses and jeepneys are most often used to goods.
transfer people not freight 5. Air Transportation- is the fastest form of
a. Advantages of using trucks transportation thus highly used for perishable
i. Convenience- provide door to goods such as flowers and foods
door services
ii. Fast- moving goods by trucks is The transportation mix
faster that by inland waterways
iii. Flexible- in terms of physical or Speed- time required to moved goods to pick up point to
economic feasibility compare to the point of delivery
air and pipeline
Cost- the predominant carrier selection determinant in
iv. Can reach even the remote area
early carrier selection works.
v. Can travel over public highway
system Frequency- scheduled shipment per day
b. Disadvantages of using trucks
i. High cost loading and unloading Dependability- on meeting schedules and safety delivery
small less than truckload of the goods
shipment
ii. Less desirable for transporting Availability- For frequent use
bulk goods because of
Capability- ability to meet nature and kind of
comparatively small size
commodities to be shipped.
iii. Slow due to frequent rest stop
and traffic congestion
iv. Unprofitable return tips
2. Railroads-is a low cost transportation for
distances over 120 kilometers.
a. Advantages
i. Suitable for movement of bulk
goods