This document outlines the process for analyzing and designing a logistics system. It involves defining the problem through feasibility analysis and project planning, collecting and analyzing relevant data, developing recommendations based on that analysis, and implementing the recommended solution. The key steps are assessing the current system, setting objectives and constraints, analyzing alternatives, identifying the best options based on costs and benefits, developing an implementation plan, and executing that plan while monitoring results. The overall goal is to understand problems with the existing system and design and implement optimized solutions.

2. Logistics system analysis and design
A. Problem definition and planning.
 Feasiblity analysis
 Project planning
B. Data collection and analysis.
 Assumptions and data collection.
 Analysis
C. Recommendations and implementation.
 Recommendations
 Implementation
 Conclusion

3. A. Problem definition and planning.
1.Feasibility assessment.
 Logistics design and planning must begin with a comprehensive evaluation of the
current logistics situation.
 The objective is to understand the, process, and performance characteristics of the
current system and to determine what, if, any modifications appear appropriate.
 The process of evaluating the need and desirability for change is referred as feasibility
assessment.

4. A. Problem definition and planning.
2. Project planning.
Project planning involves 5 specific items.
 Statement of objectives.
 Statement of constraints.
 Measurement standards.
 Analysis procedures.
 Project workplan.

5. A. Problem definition and planning.
Statement of objectives.
 The statement of objectives documents the documents the cost and service
expectations for the logistics system revision.
 It should be stated specifically and in terms of measurable factors.
 The objectives define market or industry segments ,the time frame for revisions, and
specific performance requirements.

6. A. Problem definition and planning.
Statement of constraints.
– The second project planning consideration concerns design constraints .
– On the basis of the situational analysis, it is expected that senior management will
place restrictions on the scope of permissible system modification.
– The nature of such restrictions will depend on the specific circumstances of individual
firms.

7. A. Problem definition and planning.
Measurement standards.
 The feasibility assessment often highlights the need for development of managerial
performance standards.
 Such standards direct the project by identifying the cost structures and performance
penalities. And by providing a means to assess success.

8. A. Problem definition and planning.
Measurement standards.
 Management must stipulate guidelines for each category as a prerequisite to
formulation of a plan..
 It is important that the standards , adequately reflect the total system performance
rather than limited, suboptimal focus on logistics functions.
 Once formulated, such standards must be held constant through out system
development.

9. A. Problem definition and planning.
Analysis procedures.
– Once the critical issues and alternatives are defined, the appropriate analysis
technique should be determined.
– Analysis techniques range from simple manual methods to elaborate computerized
decision support tools.
– Models incorporating optimization or simulation algorithms are common when
evaluating and comparing alternative logistics warehouse networks.

10. A. Problem definition and planning.
Project workplan.
On the basis of feasibility assessment, objectives, constraints and analysis technique,
a project work plan must be determined and the resources and time required for
completion identified.
The alternatives and opportunities specified during the feasibility assessment
provide the basis for determining the scope of the study.

11. B.Data collection and analysis
 Assumptions and data collection.
 Define analysis approach and technique.
 Define and review assumption.
 Identify data sources.
 Collect data
 Collect validation data.
 Analysis
 Define analysis questions.
 Complete and validate baseline analyze
 Complete alternative analysis
 Complete sensitivity analysis.

12. B.Data collection and analysis
Assumption and data collection.
1.Define analysis approach and technique
Analysis should be done through any of the techniques like analytical, simulation, and
optimization.
The analytical approach uses standard numerical methods such as those available
through spreadsheet to evaluate each logistics alternative.
2.Define and review assumptions .
The assumptions define the key operating characteristics, variables, and economics of
current and alternative system.

13. B.Data collection and analysis
3.Identify data sources.
In actual practice the process of data collection begins with a feasibility assessment .
In addition a fairly detailed specification of data is required to formulate or fit the
analytical technique
4.Collect data.
once alternative data sources has been identified, the data collection process can
begin.
The process include assembly of required data and conversion to appropriate formats for
the analysis tool.
5.Collect validation data.
In addition to collecting data to alternative analysis ,base case or validation data must
also be collected to verify that the results accurately reflect reality.

14. B.Data collection and analysis
Analysis.
1.Define Analysis question.
The first task defines specific analysis questions concerning alternatives and the range
of alternative and the range of acceptable uncertainty.
This questions build on research objectives and constraints by identifying specific
operational policies and parameters.
2. Complete and validate baseline analysis.
The second task completes the baseline analysis of the current logistics environment
using the appropriate method or tools.
Results are compared with the validation data collected previously to determine the
degree to fit between historical and analytical findings.

15. B.Data collection and analysis
3.Complete alternative analysis.
Once the approach has been validated, the next step is to complete an evaluation of
system alternatives
The analysis must be accomplished either manually or electronically to determine the
relevant performance characteristics of each alternative.
4.Complete sensitivity analysis.
Once this analysis is completed , the best performing alternatives can be can be
targeted for further sensitivity evaluation.
Sensitivity analysis investigates the appropriateness of this ideal solution for different
demand or cost analysis.

16. Recommendation and implementation.
Recommendations.
1. Identify the best alternatives.
The decision tree analysis should identify the best alternative for implementation.
Performance characteristics and conditions for each alternative must be compared to
identify the two or three best options.
2. Evaluate cost and benefit
When evaluating the potential of a particular logistics strategy ,an analysis comparing
present cost and service capabilities with projected conditions must be completed for
each alternative.
The ideal cost benefit analysis compares the alternative for a base period and and then
projects comparative operations across some planning horizon.

17. Recommendation and implementation.
3.Develop a risk appraisal.
Risk appraisal considers probability that the planning environment will match the
assumptions.
It also considers the potential hazards related to system changeover.
Risk related to adoption of a selected alternative can be quantified using sensitivity
analysis.
4.Develop a presentation.
The final task develops a presentation to management that identifies,rationalizes, and
justify suggested changes.

18. Recommendation and implementation.
Implementation.
1.Define implementation plan
The first task defines the implementation plan in terms of the individual events, their
sequence and dependencies.
2.Schedule implementation
The second task schedules the implementation and builds on the assignment
identified previously.
The schedule must allow adequate time for acquiring facilities and equipment's,
negotiating agreement, developing procedures and training
3.Define acceptance criteria
The third task defines the acceptance criteria for evaluating the success of a plan.
Acceptance criteria should focus on service improvements, cost reduction, improved
asset utilization and enhanced quality.

19. Recommendation and implementation.
4.Implement.
The final task is actual implementation of the plan or design .
Implementation must include adequate control to ensure that performance occurs on
schedule and that acceptance criteria are carefully monitored.