Introduction to Logistics Systems Planning and Control by Gianpaolo Ghiani

By Gianpaolo Ghiani

On the way to have a brief reference publication wealthy in logistic quantitative equipment, then this ebook an outstanding selection. it's concise a simple to learn.

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Extra resources for Introduction to Logistics Systems Planning and Control (Wiley Interscience Series in Systems and Optimization)

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In order to work properly, such procedures must be tailored to the problem at hand. As a result, a slight change to problem features may entail a significant modification to the heuristic. 5 Annual sales forecast and total cost (in millions of dollars) for different service levels. 84 When using an optimization model, a key aspect is to keep model size as small as possible. As a result, unlike simulation models, optimization models do not customarily consider systems dynamics issues. Continuous approximation methods.

Traditionally, customers (both retailers or final consumers) have been in charge of monitoring their inventory TLFeBOOK 6 INTRODUCING LOGISTICS SYSTEMS levels and place purchase orders to vendors (retailer-managed systems). In recent years, there has been a growth in vendor-managed systems, in which vendors monitor customer sales (or consumption) and inventories through electronic data interchange (EDI), and decide when and how to replenish their customers. Vendors are thus able to achieve cost savings through a better coordination of customer deliveries while customers do not need to allocate costly resources to inventory management.

Should some transportation be carried out by common carriers? Logistics decisions are traditionally classified as strategic, tactical and operational, according to the planning horizon. Strategic decisions. Strategic decisions have long-lasting effects (usually over many years). They include logistics systems design and the acquisition of costly resources (facility location, capacity sizing, plant and warehouse layout, fleet sizing). Because data are often incomplete and imprecise, strategic decisions generally use forecasts based on aggregated data (obtained, for example, by grouping individual products into product families and aggregating individual customers into customer zones).

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