Page 287 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management Neha Khosla, Lovely Professional University

Notes Unit 13: Logistics Design and Operational Planning

CONTENTS
Objectives
Introduction
13.1 Planning Methodology

13.1.1 Phase I: Problem Definition and Planning
13.1.2 Phase II: Data Collection and Analysis
13.1.3 Phase III: Recommendations and Implementation
13.2 SC Analysis Methods and Techniques
13.2.1 Freight Lane Analysis
13.2.2 Inventory Analysis
13.2.3 Location Decisions

13.2.4 Location Analysis Data Requirements
13.2.5 Inventory
13.2.6 Transportation Decisions
13.3 Summary
13.4 Keywords
13.5 Review Questions
13.6 Further Readings

Objectives

After studying this unit, you will be able to:

 Discuss the Planning Methodology
 Explain the Phase I i.e. Problem Definition and Planning
 Get an Insight of Phase II i.e. Data Collection and Analysis
 Explain the Phase III i.e. Recommendations and Implementation
 Describe the SC Analysis Methods and Techniques

Introduction

The logistics environment is constantly evolving as a result of changes in markets, competitors,
suppliers, and technology. To develop and focus the enterprise strategy to match this changing
environment, a systematic planning and design methodology is required to effectively evaluate
alternatives. This unit describes a generalized methodology that includes an overview of
techniques used for logistics planning.

13.1 Planning Methodology

Even for established industries, a firm’s markets, demands, costs, and service requirements
change rapidly in response to customer and competitor behaviour. In response to these changes,

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