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    Concepts of Logistics System

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    Vaibhav Jaggi
    A logistics system is composed of facilities like manufacturing plants and warehouses that are linked by transportation services. The purpose of a logistics system is to obtain and move supplies and equipment in a timely manner at reasonable cost. A logistics system includes sources that supply commodities, primary supply points like distribution centers, and outlets that dispense to end users. It is important to understand details about the facilities, transportation links, and reasons for holding inventory in the system.

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    Concepts of Logistics System

    Uploaded by

    Vaibhav Jaggi
    56 views11 pages
    A logistics system is composed of facilities like manufacturing plants and warehouses that are linked by transportation services. The purpose of a logistics system is to obtain and move supplies and equipment in a timely manner at reasonable cost. A logistics system includes sources that supply commodities, primary supply points like distribution centers, and outlets that dispense to end users. It is important to understand details about the facilities, transportation links, and reasons for holding inventory in the system.

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    A logistics system is composed of facilities like manufacturing plants and warehouses that are linked by transportation services. The purpose of a logistics system is to obtain and move supplies and equipment in a timely manner at reasonable cost. A logistics system includes sources that supply commodities, primary supply points like distribution centers, and outlets that dispense to end users. It is important to understand details about the facilities, transportation links, and reasons for holding inventory in the system.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    56 views11 pages

    Concepts of Logistics System

    Uploaded by

    Vaibhav Jaggi
    A logistics system is composed of facilities like manufacturing plants and warehouses that are linked by transportation services. The purpose of a logistics system is to obtain and move supplies and equipment in a timely manner at reasonable cost. A logistics system includes sources that supply commodities, primary supply points like distribution centers, and outlets that dispense to end users. It is important to understand details about the facilities, transportation links, and reasons for holding inventory in the system.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 11

    Concepts of Logistics System Design

    What is a System?
     A system is a set of interacting or
    interdependent component parts forming a
    complex/intricate whole.
     The term system may also refer to a set of
    rules that governs structure or behavior.
    Types of System

    System

    Cultural Economic
    system system
    Cultural system

    A cultural system may be defined as the


    interaction of different elements
    of culture.
     While a cultural system is quite different
    from a social system, sometimes both
    systems together are referred to as the
    sociocultural system.
    Economic system

     An economic system is a mechanism (social


    institution) which deals with
    the production, distribution and consumption
    of goods and services in a particular society.
     The economic system is composed
    of people, institutions and their relationships to
    resources, such as the convention of property.
    It addresses the problems of economics, like
    the allocation and scarcity of resources.
    Logistics System
     A Logistics system is set of facilities linked by
    transportation service
     Facilities are sites where materials are
    processed e.g. Manufactured, Stored, Sold etc
    Purpose of Logistics Systems
     To obtain and move supplies and equipment
    in a timely fashion to the places where they
    are needed, at a reasonable cost.
     Matters are complicated by the fact that
    equipment and supplies usually cannot go
    directly from their source to the end user;
    they frequently must be held as inventory at
    one or more intermediate points along the
    way.
    Physical Structure of the System
     Facilities that are outside the system (such
    as drug manufacturers) from which
    commodities are supplied; these are
    called “sources.”
     Facilities that receive supplies from a
    source (such as a Distribution Centre) are
    called “primary supply points.”
     Facilities that dispense commodities to
    end users are called “outlets.”
    Six important things to know about the facilities:
     Where is the facility located?
     How is it staffed?
     What is the actual need for each commodity
    at the facility and how does this need vary
    over time?
     What is the facility’s storage capacity?
     What are the storage conditions, and are they
    suitable for the items being stored?
     How is the inventory controlled, and is it
    secure?
    Five important things to know about
    transportation links:

     What types of transportation are available?


     What size batches of commodities are cost-
    effective to transport?
     How long does it take to get from one facility
    to the next?
     How often can shipments be made?
     Are the answers to these questions different
    during different seasons of the year?
    Four reasons for holding inventory:

     Transportation efficiency:

     Safety stocks:

     Storage capacity:

     Anticipation:

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