Page 125 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes Internally, information systems must be upgradable to meet future enterprise needs without
incurring debilitating costs in terms of financial investment and/or programming time.

Appropriate Format

Finally, logistics reports and screens should be appropriately formatted, meaning that they
contain the right information in the right structure and sequence.

Example: LIS often include a distribution centre inventory status screen, with one product
and distribution centre listed per screen.
This format requires that a customer service representative check inventory status at each
distribution centre when attempting to locate inventory to satisfy a specific customer order. In
other words, if there are five distribution centres, it requires a review and comparison of five
computer screens. Appropriate format would provide a single screen with the inventory status
for all five-distribution centres. The combined screen makes it much easier for a customer
representative to identify the best source for the product. Another example of an appropriate
format is a screen or report that contains and effectively presents all relevant information for a
decision maker. The screen integrates past and future information regarding on-hand inventory,
minimum inventory, and demand forecast, and planned receipts for a single item at a distribution
centre.
Another example of an appropriate format is a screen or report that contains and effectively
presents all relevant information for a decision maker. The screen integrates past and future
information regarding on-hand inventory, minimum inventory, and demand forecast, and
planned receipts for a single item at a distribution centre. The graphical presentation, which
integrates inventory flows and level, facilitates inventory planning and ordering by focusing
the planner on the weeks when projected on-hand inventory may drop below minimum levels.

Self Assessment

State whether the following statements are true or false:
3. Information system timeliness refers to system status, such as inventory levels, as well as
management controls.

4. Logistics reports and screens should not be appropriately formatted.
6.3 Logistics Information System Architecture

Logistics information systems combine hardware and software to manage, control, and measure
the logistics activities. Hardware includes computers, input/output devices, and storage media.
Software includes system and application programs used for processing transactions,
management control, decision analysis, and strategic planning. The architecture includes both
the information base to maintain the data warehouse and the execution components. The
information base contains purchase orders, inventory status, and customer orders. The data
warehouse contains information describing the past activity levels and the current status, and is
the basis for planning future requirements.

Planning and coordination include the activities necessary to schedule procurement, production,
and logistics resource allocation throughout the enterprise. Specific components include
definition of strategic objectives, rationalization of capacity constraints, and determination of
logistics, manufacturing, and procurement requirements.

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