Page 314 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 13: Logistics Design and Operational Planning

 Ad hoc tactical analyses such as freight lane balancing and ABC inventory analysis must Notes
be completed regularly to respond to changes in transportation rates, flows, and product
demands.
 Regular supply chain planning and location analysis is becoming increasingly critical to
respond to changes in global material availability, market demands, and production
resource availability.
 More tactical tools such as dynamic simulation and routing and scheduling algorithms
can be used to investigate and evaluate inventory and transportation alternatives.
 The importance of such comprehensive planning and analysis methods and tools is growing
due to the possible alternatives to and complexity of global supply chains.

13.4 Keywords

Appraisal: Impartial analysis and evaluation conducted according to established criteria to
determine the acceptability, merit, or worth of an item.
Business Assumptions: It defines the characteristics of the general business environment,
including relevant market, consumer, and product trends and competitive actions.

Linear Programming: It is one of the most common techniques used for location analysis, selects
the optimal supply chain design from a number of available options while considering specific
constraints.
Logistics: The detailed coordination of a complex operation involving many people, facilities,
or supplies.
Logistics Design: Design for logistics is a series of concepts in the field of supply chain
management involving product and design approaches that help to control logistics costs and
increase customer service levels.
Management Assumptions: It defines the physical and economic characteristics of the current or
alternative logistics environment and is generally within the firm’s ability to change or refine.
Mathematical Programming Methods: They are classified as optimization techniques and are
one of the most widely used strategic and tactical logistics planning tools.
Mixed-Integer Programming: It is the other optimization solution technique successfully applied
to logistics problems.
Operational Planning: Operational planning is the process of linking strategic goals and
objectives to tactical goals and objectives.
Planning: Planning (also called forethought) is the process of thinking about and organizing the
activities required to achieve a desired goal.
Project Management: Project management is the discipline of planning, organizing, motivating,
and controlling resources to achieve specific goals.

Project Planning: Project planning is the development of tasks and a schedule to keep a project
moving forward.

Simulation: It is the process of designing a model of a real system and conducting experiments
with this model for the purpose of either understanding system behaviour or of evaluating
various strategies within the limits imposed by a criterion or set of criteria for the operation of
the system.

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