Transportation and Logistics Strategy
Review
Introduction
Service
Traffic and Transportation
Storage and Warehousing
Inventory Management
Location Decisions
Logistics Systems Analysis and Design
Organization
Transportation and Logistics Strategy
Review
Introduction
Can you define logistics using the definition discussed in class or
that of the CSCMP?
Do you understand the difference between a logistics manager
and a manager of various functions such as traffic and/or
warehousing?
Can you discuss five major factors that led to the development of
Business Logistics?
Can you discuss the major contributions of the Harvard Air
Freight Study?
Transportation and Logistics Strategy
Review
Service
Can you discuss four basic elements of service (i.e., order
cycle time, dependability, convenience, communication)?
Do you understand the need for defining very specific service
measures when dealing with customers, and can you
identify several specific measures related to the four basic
elements mentioned above?
Do you understand the importance of being able to estimate
the relationships between cost and service and between
revenue and service?
Can you determine an optimal service level if estimates of the
parameters of revenue and cost are provided?
Transportation and Logistics Strategy
Review
Traffic and Transportation
Can you discuss Value of Service/Differential Pricing in terms
of what it is, the motives for using it, and when it is
profitable? If not, look slide 7 in the second set of slides.
Do you understand the concept of a weight break? Can you
determine one if given rates for two different volumes to
common destinations?
Can you determine whether it is best to ship via LTL or TL with
stops, given different rates to different destinations?
Did you review the Kohners Manufacturing case?
Transportation and Logistics Strategy
Review
Storage and Warehousing
Can you give five reasons why warehouses are used?
Can you determine mathematically the indifference point
between public and private warehousing?
Can you adjust that indifference point to account for your return
on investment if given a hurdle rate?
Can you determine whether it is best to ship direct to a market
via LTL or to use a warehouse supplied by TL, with
customer deliveries made via Local Cartage? Could you
determine an LTL rate at which you would be indifferent
between the two options?
Did you work through the Timberlane Foods case?
Transportation and Logistics Strategy
Review
Inventory Management
Can you determine an Economic Order Quantity?
Can you determine if cheaper transportation rates would justify
shipping larger inventories?
Can you determine whether or not quantity discounts would
justify holding larger inventories?
Can you determine whether transit times by the various modes
would affect your decision?
Can you determine whether more reliable transit times would
offset more expensive transportation costs?
Did you review the Chard Appliance (B) case?
Transportation and Logistics Strategy
Review
Locations Decisions
Can you explain the difference between and the significance
of the Majority theorem and Hakimi’s Theorem?
Can you solve a single source problem on a grid?
Can you discuss the relevant costs associated with
determining the optimal number of warehouses and show
their behavior graphically?
Did you review the Dairyland Foods case?
Transportation and Logistics Strategy
Review
Logistics Systems Analysis and Design
Can you determine whether or not it is economical to
consolidate inventory into fewer warehouses and incur
higher transportation costs due to premium shipments?
Do you understand the value of information in a logistics system
and how abuse of an information system can allow
inefficiencies to exist?
Did you review the Massey Corporation case?
Transportation and Logistics Strategy
Review
Organization
Can you explain the concept of sub-optimization?
Can you discuss the underlying reasons for sub-optimization
in organizations?
Can you discuss several methods of overcoming suboptimization?
Did you review the Continental Chemical case?