L_SMS L-Supply systems management

Structure of the procurement, production and distribution logistics.

Testing-chapt.1-6

Key words:

Corporate (business) logistics, market, supply chain, transhipment, crossdocking, 1st distribution law, 2nd distribution law, SCM

Chapter objectives:

  • Understanding alternative logistics market structures,
  • To enhance knowledge of logistics strategies,
  • Understanding distribution laws.

Time required to study the chapter: 8 hours

Interpretation:

 
Alternative logistics structures
The value-creating chain forms a sequence of technological and logistics elements in which undergo transformation processes in which the products required in the market are created.
The value-creating chain begins by suppliers of raw materials for production and has a different structure depending on:
  • the type of commodity,
  • supplier's location,
  • the way and organization of transport,
  • customers requirements, etc.
 
Alternative supply chain structures include:
1. individual deliveries - are suitable for small numbers of suppliers and customers, short transport distances and large delivery volumes,
2. one-stage with tranship areas - is suitable for a large space distributed suppliers and a small number of large customers,
3. one-stage with a distribution center – is the structure suitable for regional conditions with a small number of suppliers and addressable customers,
4. two-stage structure - is used for large numbers of suppliers and customers spatially scattered over long distances using outsourced transport services and assembly and distribution logistics centers.
 
Storage and transport strategies:
   The most commonly used transport and storage strategies include:
  • external distribution warehouse,
  • transhipment concept,
  • Randez-Vous system,
  • the concept of regional carriers,
  • logistics centers.
Supply chains:
Supply chains linking suppliers, warehouses, manufacturers, logistics centers and final customers can have a different structure. The most commonly used are as follows:
  • direct deliveries,
  • shipments through the central warehouse,
  • transhipment,
  • crossdocking.
Physical distribution and distribution networks

Physical distribution means not only the movement and storage of goods (primary logistics objects), but also the related information and financial flows running through the distribution space.
The distribution space consists of all distribution points, distribution equipment, distribution network and their mutual relationships.
The distribution network consists of distribution sources, distribution centers, customers and mutual relationships between these elements.
The distribution node means a distribution point, a distribution station or a distribution warehouse, in which the collection, distribution or storage of logistics objects and their subsequent distribution.
Distribution laws
1st distribution law:
The sum of the logistics objects entering the distribution node and located at that node is equal to the sum of the logistics objects exiting from that node and remaining there.
2nd distribution law:
The sum of logistics objects at the exit of a distribution source over a given period of time is equal to the inventories volume at the distribution nodes at the end of that time period, the number of objects dispatched from the distribution nodes during that period, the amount of objects on the route between the source and the distribution nodes, and the difference in the sum of inventory volumes in distribution nodes at the beginning of this period.

Supply Chain Management (SCM)
Supply Chain Management, due to its characteristics, offers much more options, i.e. due to the interconnection of all internal and external participants along the entire process chain, from the customer of the final product to the raw material supplier, the necessary information is exchanged in real time.


Study materials:

Basic literature:
JEŘÁBEK, Karel. Logistika: study support for combined study. 1. ed. České Budějovice: Institute of Technology and Business in České Budějovice, 2012. 96p. ISBN 978-80-7468-016-8.
MACUROVÁ, L. et. Logistika. A collection of examples. Study materials for part-time study. Zlin, Tomas Bata University, 2008. ISBN 978-80-3718-745-3.

Recommended study materials:
JEŘÁBEK, K. Transport, Handling, Storage - Logistics. Construction information, Volume XI, September 2004, Monothematic Number, 28th Edition, pp. 3-31. ISSN 1211-2259.
KULČÁK, L., K RÁL, D. Logistika. Study materials for part-time students. Brno, Sting Academy in Brno, 2010. ISBN 978-80-86342-88-7.
Jeřábek, K., FRAJOVÁ, M. Výroba a distribuce stavebních materiálů – racionalizační potenciály logistiky. Construction information, Volume XIII. September 2006, monothematic number, 44th publication, pp. 3-27. ISSN 1211-2259.

Questions and tasks

  1. Alternative supply chain structures do not include:
    1. one-stage with tranship areas
    2. two-stage structure
    3. Supply Chain Management
  2. The most commonly used transport and storage strategies do not include:
    1. external distribution warehouse
    2. logistics centers
    3. JIT
  3. Supply chains linking suppliers, warehouses, manufacturers, logistics centers and final customers can have a different structure. The most commonly used are as follows::
    1. direct deliveries, shipments through the central warehouse, transhipment, crossdocking
    2. Randez-Vous system, concept of regional carriers, logistics centers
    3. 1st distribution law, 2nd distribution law and Supply Chain Management
  4. The distribution network consists of:
    1. all distribution points, distribution equipment, distribution interactions and their mutual relationships
    2. distribution sources, distribution centers, customers and mutual relationships between these elements
    3. Supply Chain Management, Transhipment a Crossdocking
  5. 1st distribution law says:
    1. The sum of logistics objects at the exit of a distribution source over a given period of time is equal to the inventories volume at the distribution nodes at the end of that time period
    2. The sum of the logistics objects entering the distribution node and located at that node is equal to the sum of the logistics objects exiting from that node and remaining there
    3. interconnection of all internal and external participants along the entire process chain, from the customer of the final product to the raw material supplier

Key to solve the questions:

  1. c
  2. c
  3. a
  4. b
  5. b
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