Logistics, Distribution, and Transportation - Chapter 15

Logistics

The art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities.

Importance of Logistics

Ensures efficient use of resources, reducing costs and time delays.

International Logistics

Managing logistics functions when the movement is on a global scale.

Third-party logistics company

An outside company used to manage all or part of another company’s logistics functions.

Transportation Modes

Different methods of transporting goods, including Truck, Ship, Plane, Rail, Pipeline, and Hand delivery.

Issues in Facility Location

Factors to consider when locating a facility, including proximity to customers, business climate, total costs, infrastructure, and quality of labor.

Factor Rating System

A quantitative method used to evaluate potential plant locations by assigning weights to various factors.

Transportation method of linear programming

A mathematical technique used to determine the most efficient way to transport goods while minimizing costs.

Centroid method

A location analysis technique that determines the optimal location of a facility by minimizing transportation costs based on distribution.

Plant Location Factors

Considerations that include transportation costs, labor availability, proximity to markets, and others relevant to facility placement.