CONTEMPORARY LOGISTICS - GBV
TenthEditionCONTEMPORARY LOGISTICSINTERNATIONAL EDITIONPaul R. Murphy, Jr.John Carroll UniversityDonald R WoodSan Francisco State UniversityPrentice HallBoston Columbus Indianapolis New York San Francisco Upper Saddle RiverAmsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
CONTENTSPreface 13PartiOverview of Logistics19Chapter 1 AN OVERVIEW OF LOGISTICS20Economic Impacts of Logistics 20Logistics: What It Is 22The Increased Importance of Logistics 24A Reduction in Economic Regulation 24Changes in Consumer Behavior 25Technological Advances 26The Growing Power of Retailers 26Globalization of Trade 27The Systems and Total Cost Approaches to Logistics 27Logistical Relationships within the Firm 30Finance 30Production 31Marketing 31Marketing Channels 33Activities in the Logistical Channel 35Customer Service 36Demand Forecasting/ 36Facility Location Decisions 36International Logistics 36Inventory Management 36Materials Handling 36Order Management 37Packaging 37Procurement 37Reverse Logistics 37Transportation Management 37Warehousing Management 37Logistics Careers 37Summary 38 Questions for Discussionand Review 38 Suggested Readings 39Case ,1-1 KiddieLand and the Super Gym 39Appendix 1: Logistics Professional Organizations41
ContentsChapter 2 LOGISTICS AND INFORMATION TECHNOLOGY43General Types of Information Management Systems 44Office Automation System 44Communication System 45Transaction Processing System (TPS) 46Management Information System (MIS) and Executive InformationSystem (EIS) 48Decision Support Systems (DSSs) 49Enterprise System 53The Internet's Influence on Logistics 54Online Retailing 54On-Demand Software 55Electronic Procurement 56Information Technology Challenges 57Summary 58 Questions for Discussionand Review 58 Suggested Readings 58Case 2-1 Just-in-Time in Kalamazoo59Chapter 3 STRATEGIC AND FINANCIAL LOGISTICSConnecting Strategy to Financial PerformanceBasic Financial Terminology 64{6263Income Statement 64Balance Sheet 65Strategic Profit Model 66Logistics Connections to Net Profit Margin 68Logistics Connections to Asset Turnover 68Balanced Scorecard 68Common Logistics Measures 69Transportation Measures 69Warehousing Measures 70Inventory Measures 70Design and Implementation of Measures 70Summaryand Review70 70Questions for Discussion Suggested Readings 71Case 3-1 Brant Freezer Company71Chapter 4 ORGANIZATIONAL AND MANAGERIAL ISSUES INLOGISTICS 74vOrganizing Logistics Within the Firm 74Organizational Structure for Logistics 75Organizational Design for Logistics 76Managerial Issues in Logistics 79Productivity 79Theft and Pilferage 82
ContentsLogistics Social Responsibility84Managing Reverse Logistics 85Lessening the Impact of Terrorism on Logistics Systems 86Summary 89 Questions for Discussionand Review 89 Suggested Readings 89Case 4-1 Red Spot Markets Company 90Part IISupply Chain M a n a g e m e n t95Chapter 5 THE SUPPLY CHAIN MANAGEMENT CONCEPTEvolution of Supply Chain Management 97Attributes Affecting SCM Implementation 99Customer Power 101Long-Term Orientation101Leveraging Technology 102Enhanced Communication Across OrganizationsInventory Control 104Interorganizational Collaboration103104Supply Chain Facilitators 105Barriers to SCM Implementation 106Regulatory and Political Considerations107Lack of Top Management Commitment 107Reluctance to Share, or Use, Relevant InformationIncompatible Information Systems 108Incompatible Corporate Cultures 108Globalization 109Supply Chain Integration 109Summary 110 Questions for Discussionand Review 110 Suggested Readings 111Case 5-1 Johnson Toy Company 111Chapter 6 PROCUREMENT115Procurement Objectives 116Supplier Selection and Evaluation 117Supplier Development (Reverse Marketing)Quality Issues in Procurement 119119Global Procurement (Sourcing) 121Investment Recovery 122Socially Responsible Procurement 123Summary 124 Questions for Discussionand Review 124 Suggested Readings 125Case 6-1 Tempo Ltd. 12510796
ContentsPart IIIElements of Logistics Systems129Chapter 7 DEMAND MANAGEMENT, ORDER MANAGEMENT,AND CUSTOMER SERVICE 130Demand Management 131Demand Forecasting Models 131Demand Forecasting Issues 132Order Management 133Order Transmittal 134Order Processing 134Order Picking and Assembly 136Order Delivery 137Customer Service 138Time 139Dependability 139Communication 140Convenience 140Managing Customer Service 141Customer Profitability Analysis 141Establishing Customer Service Objectives 141Measuring Customer Service 143Service Failure and Service Recovery 145iwSummary 146 Questions for Discussionand Review 146 Suggested Readings 147Case 7-1 Handy Andy, Inc. 147Appendix 7-A149Chapter 8 INVENTORY MANAGEMENT151Inventory Classifications 152Inventory Costs 153Inventory Carrying Costs 153Ordering Costs 155Trade-Off between Carrying and Ordering Costs 155Stockout Costs 155Trade-Off between Carrying and Stockout Costs 157When to Order 157How Much to Order 158Economic Order Quantity 158Conditions of Uncertainty 160Inventory Flows 160Inventory Management: Special Concerns 161ABC Analysis of Inventory 162Dead Inventory 162
Contents,'Inventory Turnover 163Complementary and Substitute Products 164Contemporary Approaches to Managing InventoryLean Manufacturing (Lean) 165Service Parts Logistics 167Vendor-Managed Inventory (VMI)165169Summary 169 Questions for Discussionand Review 169 Suggested Readings 170Case 8-1 Low Nail Company170Chapter 9 DISTRIBUTION CENTER, WAREHOUSE, AND PLANTLOCATION 172The Strategic Importance of Facility Location174Cost Considerations 175Customer Service Expectations 175Location of Customer or Supply Markets 175Determining the Number of Facilities 176General Factors Influencing Facility Location 178Natural Resources 178Population Characteristics—Market for GoodsPopulation Characteristics—Labor179179Taxes and Incentives 181Transportation Considerations 181Proximity to Industry Clusters 182Trade Patterns 182Qua I ity-of-Life Considerations184Locating in Other Countries 185Specialized Location Characteristics 185Free Trade Zones 186Finding the Lowest-Cost LocationGrid Systems 186186Facility Relocation and Facility Closing189Summary 190 Questions for Discussionand Review 190 Suggested Readings 191Case 9-1 Aero Marine Logistics 191Chapter 10 WAREHOUSING MANAGEMENT195Public, Private, Contract, and Multiclient WarehousingPublic Warehousing 198Private Warehousing 199Contract Warehousing 200Multiclient Warehousing 200197
10ContentsDesign Considerations in WarehousingGeneral ConsiderationsTrade-Offs201201201Fixed versus Variable Slot Locations for Merchandise 202Build Out (Horizontal) versus Build Up (Vertical)202Order-Picking versus Stock-Replenishing Functions 202Two-Dock versus Single-Dock Layout203Conventional, Narrow, or Very Narrow Aisles 203Paperless Warehousing versus Traditional Paper-OrientedWarehousing Operations 203Other Space Needs 203Warehousing Operations204Warehousing Productivity Analysis 204Safety ConsiderationsHazardous Materials205207Warehousing Security 208Cleanliness and Sanitation Issues 210Summary 210 Questions for Discussionand Review 211 Suggested Readings 211Case 10-1 Minnetonka Warehouse211Chapter 11 PACKAGING A N D MATERIALS HANDLING'Product Characteristics 214Packaging Fundamentals 215213Promotional and Protective Functions of Packaging 216Package Testing and MonitoringLabeling217219Issues in Packaging221Environmental Protection221Metric System 222Identifying Packaging Inefficiencies 223Packaging's Influence on Transportation ConsiderationsUnit Loads in Materials HandlingThe Unit Load Platform225227Beyond the Unit Load 228Materials Handling 229Materials Handling Principles 231Materials Handling Equipment232Summary 232 Questions for Discussionand Review 233 Suggested Readings 233Case 11-1 Let There Be Light Lamp Shade Company234224
ContentsChapter 12 TRANSPORTATION 235Overview of Transportation InfrastructureTransportation Modes 237Airfreight236238Motor Carriers 239Pipelines 241Railroads 241Water 242Intermodal Transportation 243Transportation Specialists 246Transportation Regulation 248Environmental Regulation248Safety Regulation 248Economic Regulation 249Legal Classification of Carriers 250Summary 252 Questions for Discussionand Review 252 Suggested Readings 252Case 12-1 HDT Truck Company253Chapter 13 TRANSPORTATION MANAGEMENTRate (Pricing) ConsiderationsRate Determination 258257258Rate and Service Negotiations 264Modal and Carrier Selection 266Documentation 267'Bill of Lading 267Freight Bill269Freight Claims 270Making and Receiving Shipments271Consolidating Small Shipments 271Demurrage and Detention 273Routing 274Tracing and Expediting 275Transportation Service Quality 276Summary 277 Questions for Discussionand Review 277 Suggested Readings 277Case 13-1 Chippy Potato Chip CompanyChapter 14 INTERNATIONAL LOGISTICS278279Macroenvironmental Influences on International LogisticsPolitical Factors 280Economic Factors 283Cultural Factors 28428011
12ContentsInternational DocumentationTerms of Sale 287286EXW (Ex-Works) 287FCA (Free Carrier) 287FAS (Free Alongside Ship) 288FOB (Free on Board) 288CFR (Cost and Freight) 288CPT (Carriage Paid To) 288CIF (Cost, Insurance, and Freight) 288CIP (Carriage and Insurance Paid To) 288DES (Delivered Ex Ship) 288DEQ (Delivered Ex Quay) 288DAF (Delivered at Frontier) 289DDP (Delivered Duty Paid) 289DDU (Delivered Duty Unpaid) 289Methods of Payment 289International Trade Specialists 290International Freight Forwarders 291Nonvessel-Operating Common Carriers 292Export Management Companies292Export Packers 294Transportation Considerations in International Logistics 295Ocean Shipping 295Shipping Conferences and Alliances 297International Airfreight 298Surface Transport Considerations 298International Trade Inventories 300Logistics Performance Index 301Summary 302 Questions for Discussionand Review 302 Suggested Readings 303Case 14-1 Nurnberg Augsburg Maschinenwerke (N.A.M.) 303Glossary 307Name Index 315Subject Index 319
CONTEMPORARY LOGISTICS INTERNATIONAL EDITION Paul R. Murphy, Jr. John Carroll University Donald R Wood San Francisco State University Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
GBV. Increase public awareness of GBV by moving away from the mere 16 days of activism to a robust 365 days campaign against GBV and encourage every citizen to take specific steps to prevent GBV in both the private and public arena. In light of the recommendations made the Government UN GBV JP facilitated a one day workshop
managing a GBV program with an NGO or coordinating a GBV working group. GBV coordinators can and are recruited without GBV program management experience and sometimes move from coordination into program management positions. Many GBV Program Managers do not move
The Gender Based Violence (GBV) conference will bring together partners working in the GBV Sector; Government Department stakeholders; representatives from donors in the Development Sector, SANAC and the Global Fund. The conference will focus on: The State's Response in dealing with GBV Exploring the link between GBV & HIV
Logistics Operations Course Number 47.47110 Course Description: Logistics Operations is the second course in the Distribution and Logistics career pathway. Successful completion of this course along with Logistics Fundamentals will prepare students for the Certified Logistics Associate
1.9 Third Party Logistics 1.10 Fourth Party Logistics 1.11 Career & Growth in Logistics and Supply Chain 1.12 Summary The unit is an attempt to give idea how logistics works as a system. It also helps to understand about the different elements in logistics system. It also provide an insight about objectiv
The Army Strategic Logistics Plan (ASLP) is the Army Logistics community's strategy to achieve the DCSLOG's Logistics Vision—the Revolution in Military Logistics (RML). The ASLP will achieve the goals of that vision by transforming Army logistics from a system based predominately on redundancy of mass, to one
The Army Strategic Logistics Plan (ASLP) is the Army Logistics community's strategy to achieve the DCSLOG's Logistics Vision—the Revolution in Military Logistics (RML). The ASLP will achieve the goals of that vision by transforming Army logistics from a system based predominately on redundancy of mass, to one
4.5 Innovation Strategy and Process in Logistics 18 4.6 Fields of Innovation in Logistics 23 4.7 Key Success Factors for Innovations in Logistics 24 4.8 Innovation Excellence Improvement Potential in Logistics 25 5 Case Studies 27 5.1 Rodenstock 27 5.2 Valeo 28 5.3 Woolworth 29 5.4 APL Logistics 31 5.5 Interporto Rivalta 32
