Table 8-3: Factors Affecting the Number of Warehouses Factor Centralized Decentralized Substitutability Low High Product Value High Low Purchase Size Large Small Special Warehousing Yes No Product Line Diverse Limited Customer Service Low High
Logistics the process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption so as to meet customer requirements.
Right material reaches the right place at the right time.
Potential market of $4 Trillions.
Challenges for Detroit Company:
Inefficiency in the logistics.
Fragmented Nature of the industry.
Reason for Inefficiencies:
Lower truck Speeds, larger turn around time and administrative delays.
Poor Roads, Ports, and telecom lead to create a limited value to the customer.
Suggested Types & Sources Of Data Description Source Demand planning
Sales figures of existing players in the market
Expected Demand . Master planning Material, capacity, transportation and other constraints, simultaneously. Procurement Constraints such as vendor capacities, costs and lead times can be modeled as part of supply chain resulting in superior plans. Transportation Consider dynamic transportation requirement and generate optimizing transportation plan. Manufacturing Plan considering material, capacity and other constraints which impact on manufacturing.