Chapter_12_-_Logistics

Chapter_12_-_Logistics - BUS 370: Logistics Chapter 12...

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BUS 370: Logistics Chapter 12 Tracy Freeman Poole College of Management North Carolina State University 1
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Chapter Objectives Be able to: Describe why logistics is important and discuss the major decision areas that make up logistics List the strengths and weaknesses of the various modes of transportation and discuss the role of multimodal solutions. Identify the major types of warehousing solutions and their benefits. Calculate transportation costs for various shipment methods Explain what reverse logistics systems are, and some of the unique challenges they create for firms 2
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Logistics Planning, implementing, and controlling the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer’s requirements http://www.youtube.com/watch?v=mRAHa_Po0Kg 3
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Logistics Business Activities Transportation Warehousing (and more generally, location) Material handling Packaging Inventory management Logistics information systems Logistics service providers 4
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Why the Increasing Interest? Deregulation Globalization Technological breakthroughs Environmental concerns - Sustainability Performance impact 5
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Globalization (Worldwide Statistics) Year Expenditures % GDP 1997 $5,095 Billion 13.4% 2002 $6,732 Billion 13.8% Change +32% +3% What is driving this activity? 6
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Environmental Concerns Even while certain aspects of logistics have been deregulated, other areas are being controlled more stringently Fuel efficiency Pollution Recovery, recycling, and reuse of packaging, containers, and products 7
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Major Transportation Modes Highway (truck) Water Rail Air Pipeline 8
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Modal Shares of Shipments (within US, 2002) Mode Value (%) Tons (%) Ton Miles (%) Highway (trucking, parcel, postal, courier) 86.0 67.4 28.7 Water 1.1 11.1 13.6 Rail 3.7 16.1 36.8 Air 3.2 0.0 0.4 Pipeline 1.8 5.9 20.5 Multimodal/Unknown 5.6 5.5 6.8 9
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Chapter_12_-_Logistics - BUS 370: Logistics Chapter 12...

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