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Chapter 9: distribution: inventory and transport (9.7 route planning (3…
Chapter 9: distribution: inventory and transport
9.1 distribution location
DC has 3 functions
regrouping goods (groupage function)
transferring goods to another means of transport (transshipment function)
storing goods (inventory function)
8 questions to establish decision making for one or more DC's (see blz 309 for 8 questions)
location model
heuristic model
analytical model
center of gravity model / grid model
see blz 310 & 311 for formulas to find center of gravity of a DC (ideal location)
grid distance (in km)
9.2 inventory distribution management
see figure 9.2 & example 9.1
9.3 distribution requirements planning (DRP-I)
DRP-I is a methodology with which you can determine the replenishment requirements at distribution points phased in time
DRP-I's purpose is to improve the management in distribution chains
the technology used has lots of similarities with MRP-I
3 important characteristics of of invwntory replenishment systems (what makes the inventory sufficient)
average demand is used and irregular demand patterns aren't taken into account
only determine when an order should be placed, not when the goods are needed
systems don't warn about fluctuation in demand
multiplier effect
figure 9.3
DRP-I helps to anticipate demand
dependent demand & independent demand
see top of page 316
how DRP-I works in a 2-tier distribution system is shown in table 9.2
9.4 distribution resource planning (DRP-II)
DRP-II is used to optimize the utilization of available capacity
master schedule
figure 9.4
rough cut capacity planning (RCCP)
capacity requirement planning (CRP)
9.5 distribution and transport
transport management systems (TMS)
it is a software system that supports the following decisions related to transportation:
purchasing of transport services, calculating + registering optimal routes & executing the transport plans
figure 9.5
phases in the transport process:
control
financial processing
planning
management information
preparation
electronic data interchange (EDI)
possible technique for preparation
9.6 transport modalities
5 transport modalities / means of transport:
water
air
road
pipeline
rail
alternative transportation ranked based on certain criteria:
delivery frequency
risk
praticability
transport costs
variability
accesibility
speed
table 9.5 shows classification per criterion
9.7 route planning
3 objectives to (generally) minimize the costs
transport problem
transshipment problem
traveling salesman problem
knapsack problem
clark and wright's savings algorithm
9.8 E-logistics
E-fulfillment, E-logistics, E-commerce
E-tailer
6 points of consequences of E-commerce:
intenet is an interactive medium
businesses conduct business direclty to customers
online shopping
internet is a fast medium
delivery quantities are becoming smaller and lead times shorter
some links in the chain gain a different function or disappear
9.9 subsystems in E-logistics
figure 9,7
inventory
inventory management
transport
direction of chain integration
changes to the chain & diversity in products
warehousing
E-warehousing and virtual warehousing