9/15/2020 Logistics - Wikipedia
Merchandise being transported internationally is usually subject to the Incoterms standards issued by
the International Chamber of Commerce.
Configuration and management
Similarly to production systems, logistic systems need to be properly
configured and managed. Actually a number of methodologies have
been directly borrowed from operations management such as using
Economic Order Quantity models for managing inventory in the
nodes of the network.[24] Distribution resource planning (DRP) is
similar to MRP, except that it doesn't concern activities inside the
nodes of the network but planning distribution when moving goods
through the links of the network.
Traditionally in logistics configuration may be at the level of the
Push-back rack for motorcycles, a warehouse (node) or at level of the distribution system (network).
LIFO rack system for storage
Regarding a single warehouse, besides the issue of designing and
building the warehouse, configuration means solving a number of
interrelated technical-economic problems: dimensioning rack cells, choosing a palletizing method
(manual or through robots), rack dimensioning and design, number of racks, number and typology of
retrieval systems (e.g. stacker cranes). Some important constraints have to be satisfied: fork and load
beams resistance to bending and proper placement of sprinklers. Although picking is more of a tactical
planning decision than a configuration problem, it is important to take it into account when deciding the
layout of the racks inside the warehouse and buying tools such as handlers and motorized carts since
once those decisions are taken they will work as constraints when managing the warehouse, the same
reasoning for sorting when designing the conveyor system or installing automatic dispensers.
Configuration at the level of the distribution system concerns primarily the problem of location of the
nodes in geographic space and distribution of capacity among the nodes. The first may be referred to as
facility location (with the special case of site selection) while the latter to as capacity allocation. The
problem of outsourcing typically arises at this level: the nodes of a supply chain are very rarely owned by
a single enterprise. Distribution networks can be characterized by numbers of levels, namely the number
of intermediary nodes between supplier and consumer:
Direct store delivery, i.e. zero levels
One level network: central warehouse
Two level network: central and peripheral warehouses
This distinction is more useful for modeling purposes, but it relates also to a tactical decision regarding
safety stocks: considering a two-level network, if safety inventory is kept only in peripheral warehouses
then it is called a dependent system (from suppliers), if safety inventory is distributed among central and
peripheral warehouses it is called an independent system (from suppliers).[20] Transportation from
producer to the second level is called primary transportation, from the second level to a consumer is
called secondary transportation.
Although configuring a distribution network from zero is possible, logisticians usually have to deal with
restructuring existing networks due to presence of an array of factors: changing demand, product or
process innovation, opportunities for outsourcing, change of government policy toward trade barriers,
innovation in transportation means (both vehicles or thoroughfares), the introduction of regulations
(notably those regarding pollution) and availability of ICT supporting systems (e.g. ERP or e-commerce).
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