Design, Management and Control of Logistic Distribution Systems
Logistic of distribution
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Transcript of Logistic of distribution
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Logistic of distribution
By
Gautam paul(67)Shankar paul(71)
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Distribution? Product distribution (or place) is one of the four
elements of the marketing mix.
Movement ofgoods and services from the source
through the distribution channel, right up to thefinal customer, consumer, or user and the
movement ofpayment in the opposite direction,
right up to the original producer or supplier
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The distribution channel
I
t refers to the distribution of a good from onebusiness to another. It can be factory to supplier,
supplier to retailer, or retailer to end customer.
It is defined as a chain of intermediaries, each
passing the product down the chain to the next
organization, before it finally reaches the consumer
or end-user.
This process is known as the 'distribution chain' orthe 'channel.'
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Logstics??
Logistics is the management of the flow ofgoods and services between the point oforigin and the point of consumption in order
to meet the requirements of customers.
Logistics involves the integration of
information, transportation, inventory,warehousing, material handling, andpackaging, and occasionally security.
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Obj. of logistics is the management of the flow of goods
information and other resources.
integration of information
Cost reduction Improving customer service
Rapid Response
Reduce total distribution costs Generating additional sales
Creating time and place utilities
Quality improvement
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Information logistics
Information Logistics (IL) can be defined as
"managing and controlling information handling
processes optimally with respect to time (flow
time and capacity), storage, distribution andpresentation in such a way that it contributes to
company results in concurrence with the costs of
capturing (creation, searching, maintenance etc)."
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Goal
information logistics is about providing:
the correct information product
at the accurate point of time
in the correct format / quality
for the intended recipient
at the right location
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transportation
Transportation plays a connective role among the
several steps that result in the conversion of
resources into useful goods in the name of the
ultimate consumer. It is the planning of all these functions and sub-
functions into a system of goods movement in order
to minimize cost maximize service to the customersthat constitutes the concept of business logistics.
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Mode of transport
Aviation
rail transport
road transport
water transport
pipelines
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Inventory management
Managing inventory in distribution system is
one of the most critical activity in logistic
management system.
Inventory level directly influence the
profitability of a company
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Why we need inventory
Improve customer service
Reduce cost
Smoothing the operations of the logisticsystem
avoiding stock out problem
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Inventory control decision
Pull and push inventory control
Order quantity decision
Risk pooling
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warehousing
Awarehouse is a commercial building for
storage ofgoods.
Warehouses are used by manufacturers,importers, exporters, wholesalers, transport
businesses, customs, etc.
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FUNCTIONS OFWAREHOUSING
1. A balance between demand and supply
2. Storage of goods at various stages of
production 3. A place for product assembly, product
aggregation and bulk breaking
4. Specialized services
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IMPORTANCE OFWAREHOUSING
1. Stability of prices of goods
2.An opportunity for saving on transportation
costs 3. Cost savings passed on to the consumers
4.Facilitation of foreign trade
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Main decision in warehousing
1. number of warehouse
2. location of the warehouse
3. macro prospective in warehouse location
4.micro prospective in warehouse location
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conclusion
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Thank u