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Logisticsandinventory
managementAgendaAgendaIIntroIIIIIIIVAgendaIIIIIIVLogisticsInventorymanagementSummaryLogisticsandinventorymanagementSCMasacompetitivefactorIIIIIIIVLogisticsProducerSupplierCustomerTradeInvolvementoflogisticsinallupstreamanddownstreamprocessesfromrawmaterialsprocurementasfarastothefinalcustomerallowsthefulfilmentofcustomerrequirements,as:OrderatshortnoticeQuickdeliveryDeliverypromisesAdherencetodeliverydates
integratesprocessesintovaluechainsLogisticsLogisticsandinventorymanagementSCMasacompetitivefactorIIIIIIIVInventoryManagement
ProducerSupplierOptimisationofvaluechainsthroughinventorymanagement
Customer
TradeImprovementofthedeliveryservicewithsimultaneouscostreduction.Adherencetodeliverydates,shortpass-throughtimesandlowstocksareachievedthroughSCM.Optimisationofthevaluechainsthroughcross-companyinventorymanagementCross-linkingofindividualenterprisesviaERPsystems,insightintotheflowofmaterialsandinformation
integratesprocessesintovaluechainsLogisticsLogisticsandinventorymanagementSCMasacompetitivefactorIIIIIIIVSummary
ProducerSupplierOptimisationofvaluechainsthroughinventorymanagementCustomerTrade
integratesprocessesintovaluechainsLogisticsProfitCostreductionSalesincrease
Logistics, storage, productionand processcosts Stocks,purchaseprice,orderpass-throughtimesandlostsalesreduction
Customersatisfaction, Gradeofservice, Flexibility, QualityAgendaAgendaIIntroIntroBasicsPAprocedureStartingpointsforprojectsIIIIIIVInventorymanagementLogisticsSummaryIIIIIIIVAgendaBasicsIDefinitionWiedefinierenSiedenBegriffBestandsmanagement?Whatstandsforinventorymanagement??Inventorymanagementinvolvesallinsightscontributingtotheachievementoftheoptimumconnectedwithenterpriseresourceplanning.“Source:Bundschuh,2005,p.271Definitionofinventorymanagement?Inventorymanagementdealswiththereductionofstocklevelswithsimultaneousmaintenanceorincreaseofthedeliveryserviceinanenterprise,andthecustomersatisfactionasaconsequencethereof.“Source:WikipediaDefinitionofinventorymanagementIIIIIIIVInventorymanagementBasicsIAimInventoryoptimisationKCReductionofthedispositioncostReductionofthestocklevelsCostreductionReductionofcapitalcommitmentImprovementofthegradeofserviceIncreaseofavailabilityRedistributionofresourcesInventoryoptimisationwithKerkhoffConsultingIIIIIIIVInventorymanagementVorr?te10%BasicsIBenefitsExample:inventoryreductionby10%accordingtothekeyfiguressystematicsofDuPontInventoryoptimisation
8%ROI=+-Gewinn4,2%IIIIIIIVInventorymanagement149BasicsIBasicmodulesBasicmodulesExternalfactors1.Suppliers 2.Customers,servicelevel3.Purchasingscheme 4.ExternalisationInternal
factorsOrganisation: Disposition: Controlling:A. Purchasingorganisation D. ITsupport G. KeyfiguresB. Dispositionorganisation E. Dispositionrules H. ObjectivesC. Planning F. Enterprise,network I. ControllingcircuitInventoryoptimisationIIIIIIIVInventorymanagementPAprocedureIPotentialderivationThe2-componentsmodelPotentialderivationQualitativeanalysisSavingpotential&measuresQuantitativeanalysisIIIIIIIVInventorymanagementPAprocedureIQuantitySystematisationofthekeyfiguresofinventorymanagementaccordingtoactualsituationTopkeyfiguresClassificationkeyfiguresOptimisationkeyfiguresMethodologyDeterminationofthecurrentperformancelevelIdentificationofitemswiththegreatestneedforactionIdentificationofitemswithwrongstockparametersDeterminationofoptimalstockparametersstockvalueInventoryTurnoverDaysofSupplyReturnonAssetsABCanalysisXYZanalysiscustomisedclassificationdeadstockgradeofservicenomoversstochasticplanningdeterministicplanningIIIIIIIVInventorymanagementPAprocedureIQuantityTopkeyfiguresStockvalueAnalysisbyuseofthiskeyfigureisbasedonthevalueofevaluatedstockofanitem,acommoditygrouporthetotalstockofanenterprise.Fromtheproductfromstockvalueandinventorycostratethecostsofstorehouses
maybecalculated
.TimeStockJanuaryJuly?stockcurrentstockvalue=currentstock*price?stockvalue=?stock*priceIIIIIIIVInventorymanagement149PAprocedureIQuantityTopkeyfiguresInventoryTurnoverThekeyfigureInventoryTurnoverindicateshowoftentheaveragestockwithinadefinedperiodwashandled
(mostlyrelatedtothelast12months).Itresultsfromthequotientofcumulativeconsumption(uppercurveshape)andaveragestock(dashedline).cum.consumptionJanuaryJuly1234567InventoryTurnover=cum.consumption(period)?stock(period)TimeIIIIIIIVInventorymanagement15089InventoryTurnover?stockPAprocedureIQuantityTopkeyfiguresDaysofSupplyThekeyfigureDaysofSupplyindicatesforhowmanydays(calendarorworkdays)thecurrentstockwithaverageconsumption
willsuffice
.DaysofSupplyTimeStockJanuaryJulyOctoberDaysofSupply(calendardays)=currentstock?consumption(year)/360DaysofSupply(workdays)=currentstock?consumption(year)/240IIIIIIIVInventorymanagement151PAprocedureIQuantityTopkeyfiguresReturnonAssetsByuseofthiskeyfiguretheprofitabilityoftheitemconsidered
iscalculated
.Anadvantageofthiskeyfigureisthatapartfromthepurestockvaluealsotheprofitmarginofindividualitems
istakenintoaccount
.IIIIIIIVInventorymanagementROA=Revenue-costs?stockvalue*interest*ROAhasdifferentdefinitions.Thedefinitionpresentedhereinisrelevantparticularlytothefieldofinventorymanagement.ROA=Profitperitem?stockvalueoftheitem÷TurnoverCostPracticalexample–TopkeyfiguresPAprocedureIQuantityITO=InventoryTurnover; DOS=DaysofSupply
IIIIIIIVInventorymanagementPurchasedpartinventories2.000.0004.000.0006.000.0008.000.00010.000.00012.000.00014.000.000KW04KW07KW10KW13KW16KW19KW22KW25KW28KW31KW34KW37KW40KW43KW46KW49KW52Valuein€Remain.purch.p.Pur.p.dispoDeadstockInventorytargetInventorytarget:ITO=7.2orDOS=50*PAprocedureIQuantitySystematisationofkeyfiguresofinventorymanagementaccordingtoactualsituationTopkeyfiguresClassificationkeyfiguresOptimisationkeyfiguresMethodologyDeterminationofthecurrentperformancelevelIdentificationofitemswiththegreatestneedforactionIdentificationofitemswithwrongstockparametersDeterminationofoptimalstockparametersstockvalueInventoryTurnoverDaysofSupplyReturnonAssetsABCanalysisXYZanalysiscustomisedclassificationdeadstockgradeofservicenomoversstochasticplanningdeterministicplanningIIIIIIIVInventorymanagementPAprocedureIQuantityClassificationkeyfiguresABCanalysisTheABC
analysisisa
categorisationtechniqueusedfor
classification
ofalargequantityofdata.ItdividesanumberofitemsintoclassesA,BandC
whicharecategorisedaccordingtodecreasingimportance.Theideabehindthisclassificationisthatby
20%ofwork80%oftheresult(Pareto
distribution)maybegenerated
.ABCmediumimportant,ofmediumvalue,mediumlevelsofturnoverlessimportant,oflowvalue,lowlevelsofturnoverimportant,ofhighervalue,top-selling%inproportiontoquantityValuepercentageABCIIIIIIIVInventorymanagement152PAprocedureIQuantityClassificationkeyfiguresXYZanalysisAimoftheXYZanalysisinthematerialsmanagementistofindoutwhichpredictionaccuracyshowsaprocurementitem(material,part,etc.)withregardtoitsconsumption.XYZinconstant,upwardordownwardtendencies,e.g.seasonalfluctuationsunsteadyPredictionaccuracyrelativelylowrelativelyconstant,onlyoccasionalfluctuationsPredictionaccuracyrelativelyhighIIIIIIIVInventorymanagement153PAprocedureIQuantitySystematisationofkeyfiguresofinventorymanagementaccordingtoactualsituationTopkeyfiguresClassificationkeyfiguresOptimisationkeyfiguresMethodologyDeterminationofthecurrentperformancelevelIdentificationofitemswiththegreatestneedforactionIdentificationofitemswithwrongstockparametersDeterminationofoptimalstockparametersstockvalueInventoryTurnoverDaysofSupplyReturnonAssetsABCanalysisXYZanalysiscustomisedclassificationdeadstockgradeofservicenomoversstochasticplanningdeterministicplanningIIIIIIIVInventorymanagementOptimisationkeyfiguresPAprocedureIQuantityTimeStockJanuaryJulyDeadstockDeadstockDeadstockstandsforthepartofthestockwhichwasnot
movedoveradefiniteperiodinthepast.Deadstock=theloweststockvalueoftheexaminedperiodIIIIIIIVInventorymanagement154OptimisationkeyfiguresPAprocedureIQuantityGradeofserviceByuseofthegradeofserviceitiscalculatedtowhatextentthedemandforanitemmaybesuppliedpromptlyfromtheexistingstocks.Herethreedifferentclassesofthegradeofservicemaybedistinguished:i)order-oriented ii)quantity-orientediii)time-orientedOrder-oriented=NumberofordersdeliveredTotalnumberofordersQuantity-oriented=NumberofitemsdeliveredTotalnumberofitemsTime-oriented=Periodswithstock>0TotalperiodsTimeStockJanuaryJulyIIIIIIIVInventorymanagementOptimisationkeyfiguresPAprocedureIQuantityNomoversAsnomoverssuchitemsarecharacterised
incaseofwhichforalongerperiod
anyconsumptionhasnottakenplace
.Ananalysisofthiskeyfigureaimsattheselectionofitems
without
current
use.Examinationofthevalues?dayswithoutconsumption“or?lastconsumption“TimePeriodwithoutmaterialconsumptionStockJanuaryJulyIIIIIIIVInventorymanagement155PAprocedureIQuantitySystematisationofkeyfiguresofinventorymanagementaccordingtoactualsituationTopkeyfiguresClassificationkeyfiguresOptimisationkeyfiguresMethodologyDeterminationofthecurrentperformancelevelIdentificationofitemswiththegreatestneedforactionIdentificationofitemswithwrongstockparametersDeterminationofoptimalstockparametersstockvalueInventoryTurnoverDaysofSupplyReturnonAssetsABCanalysisXYZanalysiscustomisedclassificationdeadstockgradeofservicenomoversstochasticplanningdeterministicplanningIIIIIIIVInventorymanagementPAprocedureIQuantityMethodologyDeterminationofoptimalstockparametersOrderingpolicySizeoflotsorderedReorderpointSafetystock
DemandmanagementordemandforecastBillexplosionPlanningoflotsizesandorderingtimeSafetystockDeterministicplanning(demand-orconsumption-oriented)StochasticplanningIIIIIIIVInventorymanagementPAprocedureIQuantityStochasticplanning-overviewRT*?consumptionInventorychangeStockSizeoflotsorderedSafetystockReorderpointOrderingpolicy*ReplenishmentTimeTimeIIIIIIIVInventorymanagementPAprocedureIQuantityStochasticplanningOrderingpolicyOnthebasisoftheorderingpolicydecisionswhentotriggeranorderandhowmuchtoorderaretaken.MethodsVariableorderingtime,constantsizeoflotsorderedConstantorderingtime,variablesizeoflotsorderedVariableorderingtime,variablesizeoflotsorderedIIIIIIIVInventorymanagement156157158PAprocedureIQuantityStochasticplanning-overviewRT*?consumptionInventorychangeStockSizeoflotsorderedSafetystockReorderpointOrderingpolicy*ReplenishmentTimeTimeIIIIIIIVInventorymanagementStochasticplanningPAprocedureIQuantitySizeoflotsorderedTheoptimalsizeoforderedlotsintheinventorymanagementsignifiessuchquantityincaseofwhichthesumoffixedandvariableorderingorstoragecostswithintheplanningperiodshowsaminimum.Influencingfactors:EOQMinimumorderquantityPackingStoragerestrictionTransportrestrictionGraduatedpricesAdjustmentoftheDaysofSupplyCostOptimalorderquantityOverallcostsStorageandinventorycostOrderingprocesscostQuantityIIIIIIIVInventorymanagementPAprocedureIQuantityStochasticplanning-overviewRT*?consumptionInventorychangeStockSizeoflotsorderedSafetystockReorderpointOrderingpolicy*ReplenishmentTimeTimeIIIIIIIVInventorymanagementPAprocedureIQuantityStochasticplanningReorderpointstandsforsuchstockbalanceafterreachingorfallingbelowofwhichanorderistriggered.ReorderpointReorderpoint=(?dailyconsumption*?RT)+safetystockMaximumstocklevelQuantityTimeReorderpoint?
stocklevelSafetystockRT*OrderpointArrivalofdeliveryConsumptioninRTSafetystockOrderquantityConsumption*ReplenishmentTimeIIIIIIIVInventorymanagementPAprocedureIQuantityStochasticplanning-overviewRT*?consumptionInventorychangeStockSizeoflotsorderedSafetystockReorderpointOrderingpolicy*ReplenishmentTimeTimeIIIIIIIVInventorymanagementStochasticplanningPAprocedureIQuantitySafetystockThesafetystockiskeptinordertocompensatelongerthanaveragedeliverytimesordemandfluctuations.Influencingfactors:availability?deliverytimestandarddeviation fromdeliverytime?demandstandarddeviation
fromdemand100%AvailabilityOptimumCostsofnon-availabilityInventorycostSafetystockisnotnecessarytoobtain50%availability50%StockIIIIIIIVInventorymanagement160PAprocedureIQuantityInspiteofdifferentdemandbehaviourofitems103701and103702,theyaredepositedinthesamemin-maxprinciple.Incaseof103701,thedangerofastock-outisveryhigh.DataextractfromItemMaintenanceStockchangesPAprocedureIQuantityIIIIIIIVInventorymanagementPAprocedureIQuantityMethodologyDeterminationofoptimalstockparametersOrderingpolicySizeoflotsorderedReorderpointSafetystock
DemandmanagementordemandforecastPlanningoflotsizesandorderingtimeSafetystockBillexplosionDeterministicplanning(demand-orconsumption-oriented)StochasticplanningIIIIIIIVInventorymanagement162168Deterministicdemandplanningbyuseofadd*oneofINFORMDemandPlanning(I/III)PAprocedureIQuantityIIIIIIIVInventorymanagementDeterministicdemandplanningbyuseofadd*ONEofINFORMDemandPlanning(II/III)VorgehenPAIQuantityIIIIIIIVInventorymanagementDeterministicdemandplanningbyuseofadd*ONEofINFORM(II/II)PAprocedureIQuantityIIIIIIIVInventorymanagement163BasicsISoftwaresystemINFORMisaspecialistforsoftwaresystemsusedtooptimisationofbusinessprocessesEstablishedin1984INFORMemploysover270workers:inGermany:Aachen,Frankfurtabroad:London,Chicago30%annualsalesgrowthduringthelast15yearsITsolutionsinareasof:salesplanningandmaterialsmanagementproductionplanningtransportandintralogisticsairportresourcesmanagementfinancialmanagementRespectivesoftwareproductsarerunasadd-onstoadministrativeITsystemsanddatabasesDataIIIIIIIVInventorymanagement163Practicalexample-keyfigures(I/XI)PAprocedureIQuantityIIIIIIIVInventorymanagementPracticalexample-keyfigures(II/XI)PAprocedureIQuantityIIIIIIIVInventorymanagementPAprocedureIQuantityItemnumber1KeyfiguresConsumption:44,309€?stock:27,240€Deadstock:10,266€InventoryTurnover:1.6IIIIIIIVInventorymanagementPracticalexample-keyfigures(III/XI)PAprocedureIQuantityIIIIIIIVInventorymanagementPracticalexample-keyfigures(IV/XI)PAprocedureIQuantityItemnumber2KeyfiguresConsumption:22,225€?stock:9,560€Deadstock:5,004€InventoryTurnover:2.32IIIIIIIVInventorymanagementPracticalexample–keyfigures(V/XI)PAprocedureIQuantityIIIIIIIVInventorymanagementPracticalexample–keyfigures(VI/XI)PAprocedureIQuantityItemnumber3KeyfiguresConsumption:186,136€?stock:98,006€Deadstock:29,488€InventoryTurnover:1.9IIIIIIIVInventorymanagementPracticalexample–keyfigures(VII/XI)PAprocedureIQuantityIIIIIIIVInventorymanagementPracticalexample–keyfigures(IIX/XI)PAprocedureIQuantityItemnumber4KeyfiguresConsumption:109,840€?stock:56,283€Deadstock:8,858€InventoryTurnover:1.95IIIIIIIVInventorymanagementPracticalexample–keyfigures(IX/XI)PAprocedureIQuantityIIIIIIIVInventorymanagementPracticalexample–keyfigures(X/XI)PAprocedureIQuantityItemnumber11KeyfiguresConsumption:55,757€?stock:3,488€Deadstock:1,164€InventoryTurnover:16.0IIIIIIIVInventorymanagementPracticalexample–keyfigures(XI/XI)FindingpotentialPA
procedureIQuantityValueofoutgoinggoodsStockvalueABCABCItems:
1166Stock:
8.449,605€Potential(20%):
1,689,921€Items:
541Stock:611,568€Potential(5%):
30,578€Items:
201Stock:
-284,262€Potential(5%):
0€Items:
274Stock:
721,873€Potential(50%):
360,937€Items:
1184Stock:
1,160,941€Potential(20%):
232,188€Items:
1377Stock:
270,059€Potential(5%):
13,503€Items:
1
Stock:
22,750€Potential(80%):
18,200€Items:309Stock:
238,955€Potential(50%):
119,478€Items:
4846Stock:
575,883€Potential(20%):
115,177€HighLowHighStocksinredareasshouldbeavoided!Criticalstockincl.nomovers:DistributionABCanalysisSalesforecast(80%/15%/5%)KeyfiguresTotalstock:11,767,372€Stockreduction:2,579,981€(22%)Annualsavings(15%):386,997€IIIIIIIVInventorymanagement148164PAprocedure2-componentsmodelFindingpotentialSavingspotential&measuresQuantitativeanalysisQualitativeanalysisIIIIIIIVInventorymanagementPAprocedureIFindingpotentialRetrospection–basicmodulesExternalfactors1.Suppliers 2.Customers,levelofservice3.Purchasingscheme 4.ExternalisationInternal
factorsOrganisation: Disposition: Controlling:A. Purchasingorganisation D. ITsupport G. KeyfiguresB. Dispositionorganisation E. Dispositionrules H. TargetsC. Planning F. Enterprise,network I. ControllingcircuitInventoryoptimisationIIIIIIIVInventorymanagementDetailedexaminationoftheoptimisationareasPAprocedureIQualityOrganisation:FieldofresponsibilityITsupportOrderingpolicyDemandplanningintegrationKeyfigurescompiledKeyfigurescontrolControlling:Degreeoftargetachievement*Area0%100%ProcurementmanagerassignmentSupplierassessment50%Disposition:*Source:analysedquestionnairesandon-sitevisit*DatamaintenanceOverallpotentialTargetachievementbythecompanyXXXIIIIIIIVInventorymanagement165166167Practicalexample–questionnaireanalysis(I/III)PAprocedureIQualityIIIIIIIVInventorymanagementPracticalexample–questionnaireanalysis(II/III)PAprocedureIQualityIIIIIIIVInventorymanagementPracticalexample–questionnaireanalysis(III/III)PA
procedureIQualityOrganisation:Controlling:0%100%50%Disposition:FieldofresponsibilityITsupportOrderingpolicyDemandplanningintegrationKeyfigurescompiledKeyfigurescontrolAreaProcurementmanagerassignmentSupplierassessmentDatamaintenancePotential2.5%0.0%10%5.5%3.1%0.8%1.3%2.5%2.0%Overallpotential27.6%Degreeoftargetachievement**Source:analysedquestionnairesandon-sitevisitTargetachievementbythecompanyXXXIIIIIIIVInventorymanagementPracticalexample–target-performancecomparison:OrganisationPAprocedureIQualityEachprocurementagentorganiseshis/herworkindividually.ImplementationofuniformstandardsConsiderationofa?DispositionDepartment“DescriptionofactualsituationThecross-departmentresponsibilitiesarenotclearlyregulatedwithregardtoinventorymanagement(e.g.betweenPMandPD).CleardefinitionofinfluenceonthestocksbyrespectivedepartmentsCross-departmentprocessdefinitionwithregardtodispositionprocessesTargetconceptIIIIIIIVInventorymanagementPracticalexample–target-performancecomparison:DispositionPAprocedureIQualityDescriptionofactualsituationTargetconceptTheprocurementagentsaresupportedonlybyanITbasewhichdoesnotprovidereorderpointsandlotsizes.ClearimprovementoftheITsupportisnecessaryinordertorelievetheemployees.Itisakeyconditionfortheoptimisationofthestocks.Thecompanyworksonthebasisofamin/maxorderingpolicywithoutreorderpointsandreplenishmenttimes.Themin/maxprinciplerequiresclearrevisionandparticularisationInclusionofthetargetparametergradeofserviceInclusionofseasonalitiesor(de)listingsDifferentiationofreplenishmenttimesonthebasisofsupplierassessmentsOptimalreactiontorequirementchangesisnotpossiblebecauseoflackingintegrationoftheDistributionwiththerequirementplanning.Implementationofanintersectoralrequirementplanningprocess:RegularmeetingsbetweensalesandpurchasingteamsaswellasprocurementmanagersofthesameareaPossibilitiesfortheSalesDepartmenttofeedininformationrelatingtoindividualitemsintotheITsystemIIIIIIIVInventorymanagementPracticalexample–target-performancecomparison:ControllingPAprocedureIQualityGoodkeyfiguresatthemanagementlevelcannotbeimplementedbytheprocurementmanagerbecauseoflackingsystematisation.Improvedsystematisationbyabreak-downofkeyfiguresasfarasintothelevelofprocurementmanageranditemsBecauseofthegreatdiversityofitems,onlyslightimprovementmaybeexpectedwithoutsystemsupportDescriptionofactualsituationAdaptationofthesystemsImplementationofahighstandardisationofthedatamaintenanceThedatamaintenanceisnotoptimalbecauseofinsufficientsystemsupport.Supplierassessmentislacking.IntroducesupplierassessmentMaintainproperreplenishmenttimesOptimisationofthereplenishmenttimesintheSupplyChainManagementTargetconceptIIIIIIIVInventorymanagementPAprocedureIQualityPracticalexample–FindingpotentialFindingpotential
Quantitativeassessment:Reductionpotential(meanvalue)22%(2,579,981€)Qualitativeassessment:Reductionpotential27.6%(3,247,795€)Inventory:Reductionpotential(24.8%):11,767,372€2,918,308€Annualsavings(interest15%):Relevant437,746€Inventoryanalysis(50%)Organisation(50%)IIIIIIIVInventorymanagement164Practicalexample–InventoryManagementSoftware(I/III)StartingpointsforprojectsIPracticeStepNumberofprovidersThesearchforprovidersandpreliminaryselectionresultedinafirstpresentationdaywithfourdifferentprovidersofInventoryManagementSoftware.Preparationofacatalogueofrequirements-1Sendingofinvitationstoselectedproviders74Marketanalysisandsearchforproviders342Preliminarytalkswiththeproviders45Sendingofprequalificationquestionnairesandtheiranalysis93PresentationdayI46IIIIIIIVInventorymanagementPracticalexample–InventoryManagementSoftware(II/III)StartingpointsforprojectsIPracticeIIIIIIIVInventorymanagementPracticalexample–InventoryManagementSoftware(III/III)StartingpointsforprojectsIPracticeStepNumberofprovidersResultoftheentireselectionprocessisthefinalproposalconcerningtheselectionofasoftwareprovider.Offersoftheproviders21SelectionofaproviderbyKC15PresentationdayII23Finalpresentationincl.KCproposalconcerningthefinalproviderselectionbyKl?ckner16Assessmentoftheprovidersonthebasisoffeedbackquestionnaires24Implementationplan2IIIIIIIVInventorymanagementPracticalexample–InventorycontrollingStartingpointsforprojectsIPracticeIIIIIIIVInventorymanagementAgendaAgendaIIntroIntroLogisticsInventorymanagementIIIIIIVInventorymanagementLogisticsSummaryIIIIIIIVSummarySummaryILogisticsCorefunctionsoflogisticsWhatcorefunctionsperformslogistics?Therightproductissuppliedintherightquantity,intherightquality,attherightplace,attherighttime,attherightcost,totherightcustomer.IIIIIIIVSummarySummaryILogisticsLogisticssystemsWhatlogisticsystemsaredistinguished?IIIIIIIVSummaryHubandSpokesystemGroupagetrafficMilkRunServiceproviderswithastorehouseneartheplantDirecttransportGoodsareconveyeddirectlyfromthesuppliertothebuyerIncominggoodsinspectionalreadyinthestorehouseoftheserviceprovider;JISorJITSpecialformofthedirecttransport;routedeterminedbythecustomer;stipulatedcollectionandarrivaltimesTransportofconsolidatedcargo,viaforwardingagencies;goodsfromdifferentsenders;todifferentrecipientsConnectionbetweensourceandsinknotdirect,butviaacentralknot,theHubSummaryILogisticsLogisticsareasIntowhatareasthelogisticsofanenterprisemaybesubdivided?IIIIIIIVSummaryDisposallogisticsEnterpriselogisticsProductionlogisticsDistributionlogisticsOutsidetheenterpriseWithintheenterpriseProcurementlogisticsSummaryILogisticsWaysoftransportationWhatdifferentwaysoftransportationareavailable?IIIIIIIVSummaryRoadtransportAirtransportShiptransportRailtransportEventhegoodsthataredeliveredbyairorseausuallyarecarriedfurtherontheroad.Transportofrelativelyvaluableorurgentlyneededgoods.98%oftheintercontinentalgoodstransportstakeplaceonaship.Carriagebyrailissuitablemostlikelyforrecurring,plannableinadvance,completetraincargos,SummaryILogisticsDriversoflogisticsPleasedescribethedriversoflogistics.IIIIIIIVSummarySocioeconomicsSupplyChainManagementEcologyE-commerceSummaryILogisticsDriversoflogisticsPleasestatethereasonsfortheriseoflogisticscostsinfuture.IIIIIIIVSum
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