BUSINESS LOGISTICS SYSTEMS ANALYSIS

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BUSINESS LOGISTICS SYSTEMS ANALYSIS
Lecture 1 INTRODUCTION

• H. E. METZNER, Ph.D.
• Department of Engineering Management
• University of Missouri-Rolla

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HENRY E. METZNER, Ph.D.

• ADDRESS
  219 Engineering Management Building
  University of
  Missouri-Rolla
  Rolla, MO 65409-0370
  
  
  
• TELEPHONE [phone]
• FAX [phone]
• E-MAIL metzner_at_umr.edu

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PERSONAL INFORMATION

• Educational Background
• Professional Background
• Personal Background

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COURSE INFORMATION

• Textbook
• Lectures
• Examinations
• Homework
• Grading

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IMPORTANCE OF LOGISTICS

• Value Creation
• Cost Significance
• Lengthening Of Logistics Lines
• Strategy Implications
• Added Customer Value
• Customized Response

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LOGISTISTICS CREATES VALUE

• Form, TIME, PLACE, Possession
• Customer values, as well
• Customization through quick response JIT,
  reverse channels

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LOGISTICS COSTS

• 12 of the worlds GDP or 1,200 trillion
• As a of Sales /cwt
• Transportation 2.88 19.13
• Warehousing 2.09 21.94
• Customer Service 0.55 6.58
• Administration 0.40 3.32
• Inventory Carrying Cost 2.32 32.27
• Total Distribution Costs 8.01 80.27

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Business Systems Logistics Analysis
Inventory Strategy
Transport Strategy

• Forecasting
• Storage fundamentals
• Inventory decisions
• Purchasing and supply
• scheduling decisions
• Storage decisions

• Transport fundamentals
• Transport decisions

Customer Service Goals

• The product
• Logistics service
• Information systems

Location Strategy

• Location decisions
• The network planning process

Next Lecture Logistics Defined