BMO 2201 Lecture 9: Logistics role and research
24 Dec 2018
School
Department
Course
Professor
Document Summary
Logistics costs trends: transportation costs relative to the total cost of logistics have gone up. Because of fuel prices and movement of manufacturing to asia: inventory costs relative to the total cost of. Adoption of jit and lean practices have reduced these: administrative costs relative to the total cost of logistics have stayed the same. Logistical value proposition: logistical value proposition consists of a commitment to key customer expectations and requirements at a minimum cost, the two elements of this value proposition are. Firms must make appropriate tradeoffs between service and cost for each of their key customers. Service benefits are created by logistical performance in 3 areas: availability involves having inventory to consistently meet customer material or product requirements, operational performance deals with the time required to deliver a customer"s order. Key metrics for this area involve delivery speed and consistency: service reliability involves the quality attributes of logistics.
