The Evolution of Logistics and Supply Chain Management (SCM)

These flashcards cover key concepts related to logistics and supply chain management based on the lecture notes.

Total Logistics Concept (TLC)

An approach aimed at treating all elements of distribution and logistics as a single integrated system.

Sub-optimization

A situation where an individual component of a system is optimized without considering its impact on the overall system.

Trade-off analysis

The process of assessing the balance between costs and benefits across different logistics functions.

On Time In Full (OTIF)

A key objective in logistics aiming at delivering products exactly when and how customers expect them.

Return on Investment (ROI)

A financial metric used to evaluate the profitability of an investment, calculated as net profit divided by the capital employed.

Inventory Holding Costs

The costs associated with storing unsold goods, including warehousing, insurance, and depreciation.

Logistics planning hierarchy

The structured approach to logistics planning that includes strategic, tactical, and operational planning.

Dynamic nature of logistics

The need for logistics operations to continuously adapt to changing supply and demand conditions.

Trade-offs between company functions

Balancing various company operations to optimize overall logistics efficiency and reduce costs.

Market advantage

The competitive edge gained by providing products or services that stand out in terms of quality, pricing, or customer service.