Page 285 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes 6. What is meant by the level of threshold service of a least cost system?
7. Why does customer service not increase proportionately to increases in total cost when a
logistical system is being designed?

8. Why does customer service speed of performance increase faster for customer’s located
greater distances from a warehouse facility? What is the implication of this relationship
for system design?
9. Discuss the differences between improving customer service through faster and more
consistent transportation, higher inventory levels, and/or expanded numbers of
warehouses.
10. What is the difference between minimum total cost and short-range profit maximization
policies in system design?
Answers: Self Assessment

1. Logistical system facilities 2. Information Technology
3. Demand facing 4. Warehouse
5. Geographic size 6. ATO operations
7. Transportation 8. Forward deployment

9. Just-in-time 10. Safety stock
11. True 12. True
13. False 14. True

15. True
12.8 Further Readings

Books Ballou, R.H., Business Logistics Management: Planning, Organizing, and Controlling
the Supply Chain, 4th Ed., Prentice Hall, 1998
Bowersox, D.J. and D.J. Closs, Logistical Management: The Integrated Supply Chain
Process, McGraw Hill, 1996
Donald Waters. Logistics-An Introduction to SCM , Palgrave, 2003
Jones, J.V., Integrated Logistics Support Handbook, Special Reprint Ed., McGraw
Hill, 1998
Douglas M. Lambert, James R. Stock and Lisa M. Ellram, “Fundamentals of Logistics
Management”. McGRAW-Hill International Editions
H. Kaushal. “Case Study Solutions – Materials Management”. Macmillan India Ltd.
Vinod V. Sople . “Logistics Management – The Supply Chain Imperative”. Pearson
Education
Tompkins, J.A. and D.A. Harmelink (Editors), The Distribution Management
Handbook, McGraw Hill, 1993

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