Unit 8- PRODUCTION

The process of industrial production:

The process of turning raw materials or parts into finished goods through the use of tools, human labor, machinery and
chemical processing.

Unit 9_LOGISTICS

KEY TAKEAWAYS

1. What is logistics? the overall process of managing how resources are acquired, stored, and transported to their final
destination. A logistics management system underpins that effort and includes inbound and outbound transportation
 management, warehouse management, fleet management, order processing, inventory control, supply and demand
forecasting, and managing third-party logistics (3PL) service providers.

Logistics Components

In its most basic form, logistic components are:

▪ Intake from suppliers and material handling;

▪ Labeling, packaging into smaller units, organization and warehousing;

▪ Inventory management for production or distribution;

▪ Demand planning;

▪ Order fulfillment;

▪ Transport

2. Roles of logistics
The roles of logistics feature transportation/delivery, storage, packaging, cargo handling, distribution processing, and
information processing, and many systems have been put in place to deliver products from the production location or
factory to the consumer quickly and on time.
 3. Types:

Inbound: refers to purchasing and arranging the transportation of products, parts, materials and finished inventory from
suppliers to a company’s warehouse or manufacturing plant.

Outbound: refers to the flow of items through a company’s production line, warehouse and ultimately to the customer.
Pull strategy: company manufacture depending on current demand, which is satisfied from a small inventory. This is a replenishment strategy: both
production and supplies are constantly reacting to the actual consumption of components, rather than planning ahead .

Push strategy: include lean production,

stockless production, continuous flow
manufacturer and agile manufacturing,
nothing is bought or produced until it is
needed, production is based on estimates of
future demand, and begins according to the
planned production lead time
https://www.netsuite.com/portal/resource/articles/erp/logistics.shtml

https://ithinklogistics.com/blog/types-of-logistics-its-difference/