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CourseAdministrationTextbookBallou,RonaldH.,BusinessLogisticsManagement:Planning,Organizing,andcontrollingtheSupplychain,FifthEdition,PrenticeHall.ReferencesLambert,D,J.StockandEllram,Fundamentalsoflogisticsmanagement,McGrawHillinternationaleditions.Coyle,J.,E.BardiandC.LangleyJr.,Themanagementofbusinesslogistics:asupplychainperspective,7e,Thomsonlearning.第一页第二页,共52页。OutlineWhatislogistics?LogisticsinafirmMainissuesinlogisticsmanagementLogisticsplanning第二页第三页,共52页。Example:askiwearmakerRetailseasonfromSeptoDecOver95%oftheproductsarenewdesignseachyearRetailstoresarelocatedinNorthAmericamostouterwear(parkas,pants,suits,shells,andjackets)areproducedinAsiaEachstylecomesinseveralcolorsandthereareseveralstyle/colorsintotalWhatneedstobedoneinordertomakeasale?第三页第四页,共52页。第四页第五页,共52页。Example:Boeing787第五页第六页,共52页。Example:Boeing787ThedesignofBoeing787wasfinishedinfourcountriesasUSA,Japan,Italian,andRussia.IntheprojectofBoeing787,morethan4millionpartswillbeproducedinmorethan40countries.Boeingonlyproducedlessthen10%partinthisproject.Andhewillassemblethepartsinhisownmanufactory.第六页第七页,共52页。Example:Boeing787WingJapanBodyItalianUndercarriageFranceRudderChinaWingJapan第七页第八页,共52页。Example:ThehubofFedExMemphis第八页第九页,共52页。LouisvilleExample:ThehubofUPS第九页第十页,共52页。Example:Thehub
inPacific-Asia广州第十页第十一页,共52页。Example:ThehubinEuropean第十一页第十二页,共52页。ChallengesChallengeHowtomakethemanufacturemoreefficiently,howtoconnectthedifferenceplantsmoretightly,howtoreducethecostandhowtoincreasetheservicelevel?Whatisthebasicsupporttothisperformance?OneanswerislogisticsBut,why?第十二页第十三页,共52页。WarehousingWarehousingTransportationTransportationVendors/plants/portsTransportationFactoryTransportationCustomersInformationflowsTheImmediateSupplyChainforanIndividualFirmCR(2004)PrenticeHall,Inc.1-2第十三页第十四页,共52页。Value-addedRoleProductionFormMarketing*PossessionLogisticsTimeandPlace*EngineeringandFinancemayalsobeinvolved.第十四页第十五页,共52页。Logistics–differentperspectiveManagementofmaterialsinmotionandatrest–InventoryGettingtherightproducttothecustomer,intherightquantity,intherightcondition,attherightplace,attherighttime,andattherightcost(calledthe“sevenRsoflogistics”)–CustomerThebranchofmilitarysciencehavingtodowithprocuring,maintaining,andtransportingmaterial,personnel,andfacilities-Dictionary第十五页第十六页,共52页。Logistics–differentperspectiveThatpartofthesupplychainprocessthatplans,implements,andcontrolstheefficient,effectiveflowandstorageofgoods,services,andrelatedinformationfrompointoforigintopointofconsumptioninordertomeetcustomerrequirements–CouncilofLogisticsManagementHandlingthedetailsofanactivity–Commonculture第十六页第十七页,共52页。EvolutionofSupplyChainManagementCR(2004)PrenticeHall,Inc.第十七页第十八页,共52页。SubdivisionsofLogisticsMilitarylogisticsEventlogisticsLogisticsinmanufacturingLogisticsinservices第十八页第十九页,共52页。“…Logisticsalsoprovedaprobleminthisidyllicbutremotelocation.Thedaybeforethefestival,aplaneskiddedofftherunway,closingLijiangairportfortheday.Musicfans,mediaandperformersfoundthemselvesgrounded.ManyhadtotakeovernightbusridesfromKunmingtoLijiang.…ButgettingtoLijiangwasjustthebeginning.Thefestivalsiteitselfwasa45-minutedriveoutoftown,intheshadowofSnowMountain.Transportproblemsplaguedtheweekend,asituationmademoreunbearablebytheweather.”Turnedon,turnedinandwashedout,SCMP,Aug.24,2002第十九页第二十页,共52页。“Asacombatarmsofficer,Ilearnedearlyonthatit’sthelogisticiansthatgetyoutothebattleandsustainyouinthebattle.”GeneralColinPowellFormerChairman,JointChiefsofStaff“Anarmymarchesonitsstomach!”第二十页第二十一页,共52页。“Dr.Amy,themedicaldirectorofAmericanRedCross(ARC)’sregionalbloodcenterforthenorthernOhioregionlocatedinCleveland,wasinlowspirits.FollowingMarch,inwhichsevereoutdatingofbloodproductshadtakenplace,shewasfacinganextremeshortageofbloodinApril.ThesubstantialoutdatingofbloodproductsinMarchandtheirsevereshortageinAprilhadprovedverycostly.ShereflectedupontheARC’sstatedmission“ofprovidingthehighestqualitybloodcomponentsatthelowestpossiblecost.”ShewonderedifsomechangesinitsbloodinventorymanagementprogramwouldreduceoperatingcostsforARCandalsoincreasetheavailabilityofbloodtothehospitalsthatitsupplies.…”BusinessLogisticsManagement,RonaldH.Ballou第二十一页第二十二页,共52页。“IntwoyearsNationalSemiconductorreduceddistributioncostsby2.5percent,decreaseddeliverytimeby47percent,andincreasedsalesby34percentbyclosingsixwarehousesaroundtheglobeandair-freightingmicrochipstocustomersfromanewcentralizeddistributioncenterinSingapore.”Henkoff,R.Deliveringthegoods,Fortune,Nov.28,1994第二十二页第二十三页,共52页。OutlineWhatislogistics?LogisticsinafirmMainissuesinlogisticsmanagementLogisticsplanning第二十三页第二十四页,共52页。LogisticsObjectivesCustomerserviceCostAddvalueTimePlaceActivitiesOrderprocessingTransportationInventoryLocationWarehousingPackagingMaterialhandlingSourcing第二十四页第二十五页,共52页。
qualitydetailedproductionschedulingequipmentmaint.capacity
customerservicestandardspricingpackagingretaillocation
promotionmarketresearchproductmixsalesforcemanagement
productschedulingplantlocationpurchasing
transportinventoryorderprocessingmaterialhandlingProduction/OperationsLogisticsMarketing第二十五页第二十六页,共52页。LogisticsandFinance/AccountingROA=(revenue-expenses)/assetsLogisticscanimpactROAinseveralwaysinventoryisanassetonthebalancesheetutilizationoflogisticsrelatedassetslogisticscostLogisticsmanagershavetojustifyinvestmentinlogistics-relatedassets.Accountingsystemsarecriticalforprovidingcostinformationforlogistics
第二十六页第二十七页,共52页。TheImportanceandChallengeLogisticscreatesvaluestocustomers;Thecostsaresignificant;Logisticscangaincompetitiveadvantage.Productlifecyclesbecomeshorterandshorter;Supplychainbecomemorecomplex;Productvarietyincreases第二十七页第二十八页,共52页。CompetitiveadvantageDellSelldirectlyfromitswebsiteandcall-centersBuildtoorderOutsourcecomponentproductionandexpressshippingZaraSpeedtomarketinaroundfiveweeks(industrynorm:6-9months)AvoidmassproductionWal-MartCollaborativeplanningforecastingandreplenishmentCross-dockingRFID第二十八页第二十九页,共52页。OutlineWhatislogistics?LogisticsinafirmMainissuesinlogisticsmanagementLogisticsplanning第二十九页第三十页,共52页。LogisticsTriangleCustomerServiceTransportationInventoryLocation第三十页第三十一页,共52页。OtherIssuesWarehousingInternationallogisticsReverselogisticsITissuesEDI,Internet,ERPandothersSourcing第三十一页第三十二页,共52页。Plant:HoustonMarket:ChicagoProductioncost:$8PriceatMarket:$15Transportationandstoragecost(percwt):$5Weightpershirt:1poundExample:currentpractice第三十二页第三十三页,共52页。Example:analternativeRawmaterials:HoustonPlant:ChinaMarket:ChicagoImportduty:$0.5Productioncost:$4
Transportationandstoragecosts(percwt.):$6Weightofrawmaterial:1poundShippingcost(percwt.):$2第三十三页第三十四页,共52页。Example:questionsFromalogistics-productioncoststandpoint,shouldtheshirtbeproducedinChina?Whatadditionalconsiderations,otherthantheabovelogistics-productiontradeoff,mightbeconsideredbeforemakingafinaldecision?第三十四页第三十五页,共52页。OutlineWhatislogistics?LogisticsinafirmMainissuesinlogisticsmanagementLogisticsplanning第三十五页第三十六页,共52页。DecisionareaStrategicTacticalOperationalTransportationModeselectionSeasonalequip-mentleasingDispatchingInventoriesLocation,ControlpoliciesSafetystocklevelsOrderfillingOrderprocessingOrderentry,transmittal,andprocessingsystemdesignProcessingorders,FillingbackordersPurchasingDevelopmentofsupplier-buyerrelationsContracting,ForwardbuyingExpeditingWarehousingHandlingequipmentselection,LayoutdesignSpaceutilizationOrderpickingandrestockingFacilitylocationNumber,size,andlocationofwarehousesStrategic,Tactical,andOperationalPlanning第三十六页第三十七页,共52页。GuidelinesforLogisticsPlanningTotalcostconceptsDifferentiateddistributionPostponementConsolidationStandardization第三十七页第三十八页,共52页。TotalcostconceptsRailTruckAirCostCostoftransportationInventorycostInventoryandtransportationcoststrade-off第三十八页第三十九页,共52页。CostCostoftransportation,orderprocessingandinventoryLostsalescostCostvs.customerservicelevelImprovedcustomerservice第三十九页第四十页,共52页。CostInventorycostRevenueTransportationcostRevenueIncreasingnumberofstockingpointsSettingnumberofstockingpoints第四十页第四十一页,共52页。CostInventoryholdingcostLostsalescostSettinginventorylevelAverageinventorylevel第四十一页第四十二页,共52页。CostInventoryholdingcostTransportationcostSettingthefrequencyofdeliveryDeliveryinterval第四十二页第四十三页,共52页。DifferentiateddistributionIdea:notallproductsorcustomersshouldbetreatedthesameway.Example1:availabilityAitem:gasolineBitem:tires,batteries,oil,greaseand transmissionfluidCitem:valvestems,windshieldwiper blades,radiatorcaps,hoses,fan belts,carwax第四十三页第四十四页,共52页。Example2:customerCentralwarehouseLocalwarehouseLocalwarehousecustomercustomercustomercustomer……customer第四十四页第四十五页,共52页。Example3:orderstatusCUSTOMER第四十五页第四十六页,共52页。PostponementManyretailersdonotkeepinventoryotherthansamples.(time)DellComputerconfigurescomputersystemstocustomerorders.(form)Steelservicecenterscutstandardshapesand
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