Marketing
Supply Chain and Logistics Management
? Supply chain-organizations which create and deliver products
? Logistics management-transportation and storage of goods to serve customer needs
Total Logistics Cost Concept
? Minimize the cost of moving and storing goods, while providing an acceptable level of customer service
? Three keys—-1)movement of goods 2)storage of goods 3)acceptable customer service
Acceptable customer service
? Deliver product when and where customer wants it
? Factors 1)lead time-time from order of product to delivery for sale 2)inventory on hand 3)customer demand-fluctuating or stable
Lead time, inventory and demand
? If demand is stable, or predictable, lead time unimportant (can order 2 months in advance) and proper inventory can be calculated
? If demand fluctuates?how much inventory
? Lower inventory, lower costs?storage, investment, may become obsolete
Adequate Customer Service
? Bananas
? 25 29 30 24 22 31 30 25
? 28 28 29 26 32 29 28 31
? 100 29 30 27 10
? How many to order If only last one day, then worthless How high a level of customer service
Perfect Customer Service
? Very expensive?never run
customer, inventory, service, goods, demand, need, store, storage, high, energy, 29, time, order, one, logistics, lead, costs, 30, most, while, warehouse, very, transportation, stores, stable, spare, someone, reliable, product, perfect, mississippi, material, low, level
