more inventory requires more and larger material handling equipment more

More inventory requires more and larger material

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-more inventory requires more and larger material handling equipment -more inventory requires more bulky packaging -more inventory requires more motion and transportation (moving big quantities from place to place) -more inventory requires more people and costs of more people -more inventory provides more opportunities fro damage, theft and obsolescence. logistics management that part of supply chain management that plans, implements, and controls 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 customers' requirements. Logistics and management activities -transportation -warehousing -material handling -packaging -inventory management -logistics information systems
Logistics costs represent whatpercentage of US Gross DomesticProduct?8.5%
Challenges of effective transportation systems -supply chain complexity -competing goals among SC partners -changing customer requirements -limited information availability -synchronizing transportation with other supply chain activities -capacity and rising rates -government regulations Modes of transportation- highways sometimes called truck or motor carriers -widely used in domestic supply chain -economic structure of the highway industry contributes to vast # of carriers in industry -point to point service -flexible and fast truckload carriers > 15,000 lbs less than truckload (LTL) 150 to 15,000 lbs Small packages carrier up to 150 lbs
Highways dominate the US logistics infrastructure due to: -geographic extension of supply chain -greater emphasis on delivery speed and flexibility Highways continue to grow because it is one of the most flexible modes of transportation as very few goods are moved without highway transportation at some point in transit Highways have become more cost effective over time due to: -better scheduling and use of vehicle capacity -more efficient and reliable vehicles -increased cost competition due to deregulation highways involve what two different types of shipments? direct truck-shipment made with no stops less than truck load-smaller shipments combined with other loads.

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