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Chapter 10
Material & Information Flow Management in Channel
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Material Flow & Logistics System
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Thinking 1: PD or Logistics
Thinking 2: content of logistics system
Thinking 3: task and goal of logistics
Thinking 4:programming and management

of logistics
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Thinking 2: content of logistics system

Acording to function
Supply Logistics
Manufacture Logistics
Sale Logistics
Returned Logistics
Waste Material Logistics
Acording to activity process

Transportation Subsystem
Storage Subsystem
Loading & Unloading Subsystem
Packaging Subsystem
Dstribution Subsystem
Circulation &Processing Subsystem
Regional Logistics
Social Logistics
Domestic Logistics
Industrial Logistics
International Logistics
Enterprise Logistics
Acording to spacial scope Acording to nature & category

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Logistics contents
logistics
Information Flow
Material Flow
Logistics
facilities
& tools
Transp
ortation
Invent
ory&St
orage
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Loadi
ng &
unloa
ding
Circul
ation
&proc
essing
Distrib
ution
Informa
tion tool
collection,proc
essing &
communication
of logistics
information
Thinking 3: task and goal of logistics

Quick Response
Maximum Transportation Amount
Consolidation
Minimum Inventory
Relatively Balanced Minimum Change
Total Quality Control
Life Cycle Support
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Domestic 3PL Enterprise Category

Traditional
Transportation
Enterprise
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Manufacturing
Enterprise
Logistic
Department
TCL
Emerging
Logistics
Enterprises
Foreign Capital
Logistics
Corporation
APL
PANALPINA
EXCEL
FEDEX
Thinking 4:programming and management of logistics
D=T+FW+VW+S
D: total cost of logistics system
T: transportation cost of this system
FW: fixed inventory cost of this system

VW: total variable inventory cost of this system
S: total opportunity cost of loss on sale caused by

delayed distribution
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Factors & Assessment of Customer Service in Channel Logistics

Before-trade Factor
During-trade Factor
Ordering information
Ordering convenience
Ordering cycle
Special freight
Stock out level
surrogate products
Customer service
regulation
Organization structure
System flexibility
Management service
After-trade Factor
Fixing/Warranty/Change/Providing/Spare & accessory
parts
Products track
Customers resentment for refund
Temporary borrowing
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Customer Service Factors Assessment

Performance Performance
Enterprise A
Enterprise B
Relative
performance
NO.
Factors
Importance
Supply accuracy
6.42
5.54
5.56
-0.11
Rush order
dispose
Deal with
resentment of
customer
6.25
4.98
5.23
-0.25
6.07
4.82
5.18
-0.36
Supply on time
5.92
4.53
4.73
-0.20
Correct mistakes
5.34
4.64
4.90
-0.24
4.55
5.03
4.15
0.88
4.29
5.07
5.03
0.04
3.58
5.33
5.21
0.12
2.33
4.07
3.53
0.54
3
4
5
6
7
Single package
order
Delivery
frequency
Special man
8
computerized
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Transportation Management
2)Optimization of
Transportation
Line
1)Selection of
Transportation
Mode
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Optimization of Transportation Line

Operating
characteristics
Speed
Availability
Dependence
Liability
Using
Frequency
Cost
Eexpense
Railway
Road
Waterway
Pipeline
ecumenical
good
slightly bad
bad
slightly bad
bad
good
slightly bad
excellent
bad
good
ecumenical
excellent
bad
slightly bad
slightly bad
good
bad
excellent
ecumenical
Good
slightly bad
excellent
good
bad
good
ecumenical
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excellent
Airway
excellent
ecumenical
Inventory Management
Products
Storage
Management
Content
Warehouse
Selection
Identify the warehouse category

Identify the warehouse size
Identify the warehouse location
Inventory control
Inventory
Daily inventory management
Management
Stock anaysis
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Method to Identify the Optimal Ordering Amount

1)EOQ
2) ABC Classification Method
3) Material Requirements Planning

MRP II (Manufacturing Resource)
4)JIT
5)Enterprise Requirements Planning
6)QR
7)ECR
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EOQ
Expense
Total cost
Inventory cost
A
Ordering cost
Economic ordering lot size
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Ordering lot size
Explaination for the EOQ Model

Ordering cost and inventory cost changing with amount of
ordering lot size respectivrly.
Ordering cost decreasing with increasing of ordering lot size;
inventory cost increasing with increasing of ordering lot size.
Point A stands for economic ordering lot size, or economic

ordering amount.
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Channel Information System
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Channel Information System Defined

Channel information system
An integrated man-machine system, aiming at improving
effect and efficiency of enterprise strategy .It is humanoriented and manage information by computer.
Nature
A management system & A social system
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Structure of MIS
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Structure of MIS
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Structure of MIS
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Headquarters/Franchisers/
Information Management
Stores Management
Technology Among
System
Channel Members
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Analysis of Channel Information Process
Sale Management
Delivery Management
Promotion Management
Customer Management
Inventory Management
Accounts Receivable/payable
Purchasing Management
After-sale service
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Function of Channel Information System
Supporting distribution rear services strongly
Assessing adjust channel members

Facilitating and improving rear services data exchange
Used in non-channel management
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Thank you for your time!
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Video Lectures for MBA

Material Flow & Logistics System

Thinking 4:programming and management

Thinking 2: content of logistics system

Acording to activity process

Acording to spacial scope Acording to nature & category

Thinking 3: task and goal of logistics

Domestic 3PL Enterprise Category

Thinking 4:programming and management of logistics

FW: fixed inventory cost of this system

S: total opportunity cost of loss on sale caused by

Factors & Assessment of Customer Service in Channel Logistics

Customer Service Factors Assessment

Optimization of Transportation Line

Identify the warehouse category

Method to Identify the Optimal Ordering Amount

3) Material Requirements Planning

Economic ordering lot size

Ordering lot size

Explaination for the EOQ Model

Point A stands for economic ordering lot size, or economic

Channel Information System

Channel Information System Defined

Analysis of Channel Information Process

Function of Channel Information System

Supporting distribution rear services strongly

Assessing adjust channel members

Thank you for your time!

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