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    Logistics & Supply Chain Models

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    Soumik Kumar Das
    Logistics management involves coordinating material and information flows between suppliers, internal operations, and customers. Key aspects include responsiveness, reliability, and relationships. Logistics lead time is the time from goods receipt to delivery and must be less than customer order cycle time. Models are used to represent logistics systems and problems at various levels. Common models include transportation, assignment, vehicle routing, inventory control, and planning models.

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    Logistics & Supply Chain Models

    Uploaded by

    Soumik Kumar Das
    88 views17 pages
    Logistics management involves coordinating material and information flows between suppliers, internal operations, and customers. Key aspects include responsiveness, reliability, and relationships. Logistics lead time is the time from goods receipt to delivery and must be less than customer order cycle time. Models are used to represent logistics systems and problems at various levels. Common models include transportation, assignment, vehicle routing, inventory control, and planning models.

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    Logistics management involves coordinating material and information flows between suppliers, internal operations, and customers. Key aspects include responsiveness, reliability, and relationships. Logistics lead time is the time from goods receipt to delivery and must be less than customer order cycle time. Models are used to represent logistics systems and problems at various levels. Common models include transportation, assignment, vehicle routing, inventory control, and planning models.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    88 views17 pages

    Logistics & Supply Chain Models

    Uploaded by

    Soumik Kumar Das
    Logistics management involves coordinating material and information flows between suppliers, internal operations, and customers. Key aspects include responsiveness, reliability, and relationships. Logistics lead time is the time from goods receipt to delivery and must be less than customer order cycle time. Models are used to represent logistics systems and problems at various levels. Common models include transportation, assignment, vehicle routing, inventory control, and planning models.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 17

    LOGISTICS & SUPPLY

    CHAIN MODELS

    Krishnamohan
    Logistics Management Process
    INFORMATION FLOW

    SUPPLIERS PROCUREMENT OPERATIONS DISTRIBUTION CUSTOMERS

    MATERIALS FLOW

    Logistics Management is the means by which needs of customer


    are satisfied through the coordination of the material and
    information flows that extend from marketplace, through the firm
    and its operations and beyond that to suppliers
    Key Issues

     Responsiveness
     Reliability
     Relationships
    Key Areas
     Order Cycle Time
     Stock Availability
     Order Size Constraints
     Ordering Convenience
     Frequency of Delivery
     Delivery Reliability
     Documentation Quality
     Claims Procedure
     Order Completeness
     Technical Support
     Order Status Information
    Order – Collection Stages
     Order Placement & Communication
     Order Entry
     Credit Check
     Documentation
     Order Picking
     Delivery
     Invoicing & Collection
    Customer Order Cycle
    “Length of Time the Customer is Prepared to Wait”

    CUSTOMER ORDER ORDER ORDER ORDER


    TRANSPORT
    ORDER ENTRY PROCESSING ASSMEBLY RECEIVED
    Lead Time Components
     Commercial & Planning Lead Time
     Ordering Reception Lead Time
     Planning Lead Time
     Processing Lead Time
     Materials Lead Time
     Materials Planning & Purchasing Lead Time
     Supplier Lead Time
     Transport Lead Time
     Reception & Inspection Lead Time
     Assembly Release Picking
    Lead Time Components
     Assembly Lead Time
     Waiting Times
     Processing Times
     Transport Time to Next Stage
     Distribution Lead Time
     Dispatch Preparation Time
     Documents & Packaging
     Installation Lead Time
    Logistics Lead Time
     The time taken to complete the process
    from goods inward to delivered product
    Lead Time Gap
     Gap between the logistics lead time and
    customer order cycle

    Procurement Manufacturing Delivery

    LOGISTICS LEAD TIME

    Customer Order Cycle

    OREDER FULFILLMENT

    LEAD-TIME GAP
    Logistics Information Systems
    Planning Function
    Stock Management
    Demand Forecasting
    Strategy Planning

    Co-ordination Function Customer Service


    Production Scheduling Data Base Communication Function
    MRP External Data, Internal Data Order Status
    Inventory Availability
    Sale/Marketing Planning Inbound Shipment Status

    Control Function
    Customer Service Levels
    Vendor Performance
    Carrier Performance
    System Performance
    Major Transformations in Logistics
    Management
     From Functions to Processes
     Integral Management of Materials & Goods Flow
     From Profits to Performance
     Focus on Markets and Creation of Customer Value
     From Producers to Customers
     Focus on the Key Performance Drivers of Profit
     From Inventory to Information
     Demand-based Replenishment and Quick Response
    Time
     From Transactions to Relationships
     Supply Chain Partnership
    Models
     A miniature representation of a system
     Types
     Mathematical Models – Equations for prediction
     Logical Models – Set of Entities given a Set of Axioms for
    Illustrations
     Theoretical Models – Imaginative Mental Constructs to A count
    for Observed Phenomena (Symbolic representation of PhysiCAL
    Systems)
     It may take a mathematical form or simulation
     Can be used at strategic, executional or tactical
    level
     Can be used to chive single goal or a set of
    objectives
    Exercise of Mathematical Modeling

     Problem Identification
     Formulation as a Mathematical Model
     Model Validation
     Solution of the Model
     Implementation
    Types of Models

     Forecasting Models
     Model for Cost Relationships
     Simulation Models
    Modeling Myths

     There is a universal model to solve all the


    whole range of SCM problems
     Once the model is built, it will work forever
     Modeling is purely analytical exercise
     Models results are easily implemented
     Gathering data to support the model is quick
    and painless
     The model can be created quickly to provide
    solutions
    Overview of Models
     Transportation Models
     Assignment Models
     Vehicle Routing Problem
     Traveling Salesman Problem
     Capacitated transshipment Problem
     Shortest Path Problem
     Maximum Flow Problem
     Goal Programming Problem
     Models for Inventory Control
     Make versus Buy Models
     Vendor Quota Allocation Models
     Distributor Models
     Product Mix Model
     Operational Supply Chain Planning Model
     Strategic Planning Model

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