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goods close to the marketplace. Halloween shops/ Christmas shopsLowering inventory-related costsInventory Pooling involves consolidating safety stock for stores into one centralized location to provide same-day service to any store as needed. Store less safety stock and still meet customer needs. The class pen example- hold safety inventory for everyoneLogistics Information SystemsLogistics Information SystemsDecision support toolsCost and travel time estimationsSimulation and optimization (SCM 4330)Planning systems Selecting carriersScheduling deliveries (SCM 4311)Execution systemsMonitor logistics systems and identify problems before they get out of handReal-Time-Tracking SystemsRFIDMaterial handling system– A system that includes the equipment and procedures needed to move goods within a facility, between a facility and a transportation mode, and between different transportation modesForkliftsCranesConveyorsAutomated Storage and Retrieval Systems (ASRS)- A robot that gets materials out of the shelf. Great where the packages are standardized- not used where there is a lot of variation.
Packaging –The way goods and materials are packed in order to facilitate physical, informational, and monetary flows through the supply chainCustomer-SuppliedRe-usabilityRecyclingWeightInventory ManagementUsing slower and cheaper transportation modes will cause inventory levels within the supply chain to rise.Using faster and more expensive transportation modes will enable firms to lower inventory levels. The mode of transportation you choose effects it. If you choose slower transportation such as water, you have to incurred cost of storing the materials.Logistics StrategyLogistics strategy – A functional strategy which ensures that an organization’s logistics choices are consistent with its overall business strategy and support the performance dimensions that targeted customers value mostLanded CostsLanded cost – The cost of a product plus all costs driven by logistics activities, such as transportation, packaging, warehousing costs, handling, customs fees, transportation insurance, etc.KNOW!!!
Reverse Logistics SystemsReverse logistics system – A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling. The movement of materials back through the supply chain. Very unpredicatable.Challenges:Firms have less control over the timing, transportation modes used, and packaging for goods flowing back up the supply chain.Goods can flow back up the supply chain for a variety of reasons and a reverse logistics system needs to be able to sort and handle these different flows.Forward logistics systems typically aren’t set up to handle reverse logistics flows.Logistics Strategy:Importance of Facility Location DecisionsSupply Chain costs and revenues are affected by the location of your facilitiesmanufacturing, service, warehousing, retailTransportation Costs