Assignment Problems for Optimization in Logistics

When a problem involves the allocation of some resources to different tasks, it comes under the purview of assignment problems. This is a special class of linear programming problem. The objec­tive of the assignment problem is to determine the optimum assignment of given tasks that a set of workers can perform with varying efficiency,

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Transportation Model for Optimization in Logistics

Transportation problem is a special type of linear programming problem and typically involves a situation where goods are required to be transferred from some sources or manufacturing plants to some distribution centres, markets or warehouses at minimum cost. Typically in such a problem, the matrix gives the sources row-wise and the destinations are given

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Queuing Theory

The queuing solution is suitable for solving a service-oriented problem where the customer arrives randomly to avail the service. In this service, time is a random variable. In a typical queuing situ­ation, customers arrive to avail the service at a service system, enter a waiting line, receive service and then leave. The queuing model

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Route Planning

Maintaining a low-cost route structure that meets both business constraints and customer service requirements is critical to the success of a demand-driven supply chain. For supply chain management (SCM), route planning is what you need to create the most efficient logistical routing plans to obtain the best results in asset utilisation and cost cutting.

Inventory Models

Inventory (stocks) is an integral part of every business operation. Inventories occur in all forms and for the most diverse purposes. In applications involving inventory, the manager must answer two important questions: 1. How much should be ordered? and 2. When should it be ordered? The inventories are normally considered as goods for sales,

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Simulation for Optimization in Logistics

According to T.H. Taylor, “Simulation is a numerical technique for conducting experiments on digital computers, which involves certain types of mathematical and logical relationships necessary to describe the behaviour and structure of a complex real-world system over an extended period of time.” When decisions are to be taken under conditions of uncertainty, simulation can

Need for Organization of Logistics

The traditional approach to managing a company was to take each functional area in isolation. So, the production manager managed his function to achieve his objective, which was probably achiev­ing the lowest unit cost of production. This was done by producing long runs of the same prod­uct. It invariably meant building up stocks of

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Drivers of Logistics Organizational Structure

The organizational structure depends on the business strategy the firm pursues to achieve the desired organizational goals. 1. Process This type of organization tries to achieve the maximum efficiency in the movement of goods from a raw materials state through work in process to a finished-goods state. Here, the organization is likely to focus

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Factors Influencing Logistics Organizational Structure

The following factors influence the formation of an organization structure. These factors can be classified into two categories: internal and external. Internal factors cover size of the organization, strategy evolved, management philosophy and the degree of control. Organization structure is impacted by various factors as shown in Figure 22.6 to enhance the organizational performance.

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Logistics – Partners and Organization

Where logistics is critical to strategy but logistics management competency is low, finding a firm with which to partner may provide significant benefits. A strong partner may provide facilities located in new and existing markets, a transportation capability and administrative expertise not available within the company. Business firms have been using the services of

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Evolution in Logistics Concepts

Prior to 1950, the logistical function was part of the physical distribution system in marketing. It was regarded as one of the supportive functions with cross-functional linkages and reporting, result­ing in repetition and duplication of work and resource wastages. This was a production-focused approach born out of the prevailing economic abundance. The movement of

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Logistics Organization Design Principles

For logistics and supply chain management, a suitable organization structure needs to be devel­oped so as to achieve the desired performance level. The organizational structure should be con­sistent with the firm’s logistics strategy so that the desired performance can be achieved to fulfil the corporate vision and mission. The following commonly used organization principles

Logistics Is a Teamwork

Logistics effectiveness is an ongoing process. It requires teamwork that is effective. There may be many problems cropping up now and then. However, with a team perspective, the root causes and bigger issues can be recognized and addressed. Teamwork presents opportunities to look at how best to serve your customers or how to best

Logistics Organizational Issues

1. Information Sharing Information is power. Hence the information base is needed for an organization to adjust its controllable variables so that optimum profits are achieved. Information is also required for risk minimization. Hence, it is crucial for the organization to share the information among the organization functions. In the logistics organization where the

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Green Logistics

In the case of green logistics, all of the issues that pertain to regular logistics still apply, with the added factor of environmental friendliness. However, sometimes making products environmentally friendly creates economic concerns. For example, a beverage manufacturer could reduce the use of plastics by making thinner bottles, thereby cutting down on shipping costs.

Drivers of Green Logistics

In today’s context, being green is a necessity for all participants in logistics and supply chain man­agement. Those companies that have adopted a green approach are convinced that being environ­mentally conscious is a win-win for the business and environment. Some of the key drivers of green logistics supply chain management are as follows: Mounting

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Green Logistics Management

Green logistics management has emerged as a key approach for enterprises seeking to become environmentally sustainable. The notion of green logistics implies the insertion of environmental decisions within the traditional concept of logistics management. “Greening” the logistics means integrating environment thinking into logistics activities, includ­ing product movement from raw material sources, manufacturing processes, and

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Controls and Compliances of Green Logistics

Logistics and transport activities are having a major impact on the environment in which we all live. For example, excess carbon emission has changed the environmental landscape, by destroying the ecosystem. Indigenous forests have thinned out and changed rain patterns, thus, impacting farm­ing and food production. Consequently, logistics and transport have attracted significant legisla­tion

Responsiveness to Green Strategy

If the basic characteristics of logistical systems are analyzed, several inconsistencies with regards to environmental compatibility become evident. Five basic paradoxes are as follows: Costs pressure—The purpose of logistics is to reduce costs, notably transport costs. In addi­tion, economies of time and improvements in service reliability, including flexibility, are further objectives. Corporations involved in

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Shipper’s Guide to Green Logistics

Shippers can infl uence the primary fuel waste and pollution issues as follows: Fuel effi ciency—Using less fuel saves money and helps the environment. Packaging—Making smart packaging decisions can save fuel and reduce pollution. Idling—When trucks idle, they burn fuel. Reducing the time trucks need to idle signifi cantly improves fuel effi ciency. These

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