Laws of Forecasting
Forecasts are almost always wrong by some amount (but
they are still useful).
Forecasts for the near term tend to be more accurate.
Forecasts for groups of products or services tend to be
Forecasts are no substitute for
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.
Competitive bidding A request for bids from suppliers with
whom a buyer is willing to do business.
Request for quotation A formal request for the suppliers
to prepare bids, based on the terms and conditions set by
Description by mark
Follow-up and expediting
Receipt and inspection
Statement of work (scope of work) Terms and
conditions for a purchased service.
Settlement and payment
May be paid through Electric Funds Transfer (EFT)
Trends in Supply Management
Why Logistics Is Critical
Impact on cost, flexibility, and delivery performance
Advances in information systems
Globalization of markets
Push toward sustainability
Comparison of Modes
Be able to:
Discuss the importance of forecasting and identify the
most appropriate type of forecasting approach, given
different forecasting situations.
Apply a variety of time series forecasting models,
including moving average, expon
Measuring Logistics Performance
The perfect order
Delivered on time (according to buyers delivery dates)
Undamaged in transit
Perfect order Example 8.4
Landed cost The cost of a product plus all costs drive
Characteristics similar to Water but more flexible.
To accommodate growth, rail carriers have doubled the
number of lines along busy corridors, changed the
physical configuration of the trains, and utilized
Selecting a Transport
of Gravity Method
Example 8.6 CupAMoes
Optimization model A type of mathematical model used
when the decision maker seeks to optimize some
objective function subject to some constraints.
Objective function A quantitative funct
Implications for transportation:
Using 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 leve
A project management consultancy is a professional consulting firm with
knowledge and experience in the specialized area of assisting organizations to
improve their practice of project, program and/or portfolio management. The areas
these firms focus on a