Germany and SCM:

SCM is one of the key pillars of Germany’s competitiveness as a business location,

paving the way for added industrial value, the movement of goods and cooperation
between companies. Weighing in just behind trade and the automotive industry,
logistics is the third largest sector in Germany, employing some 2.6 million persons.
Annual turnover of 166 billion € is earned throughout the industry, representing
approximately 7% of German gross domestic product. The sector also displays far-
above average growth. Around 15 billion € are invested in logistics real estate,
technologies and qualification measures each year. The potential of the European
logistics market totals approximately 600 billion €. At 28%, Germany holds a large
portion of this market. This is due not only to its geographic situation right in the heart of
Europe, but to the top international position Germany has assumed in infrastructure and
logistics technology in the view of many foreign investors. The market potential of 82
million residents and the export strength of German industry facilitate for international
investors ideal proximity to customers and suppliers. German logistics service providers
enjoy a very sound international reputation. Their creativity, flexibility and know-how in
the improvement of modern added-value processes are appreciated throughout the
world. German innovations in logistics (particularly in telematics and navigation) are
world class.

Materials Logistics Management (MLM)

The  concept  of  materials logistics  management  includes Procurement

(Purchasing) Practices. It describes a practical approach to managing the interfaces
between purchasing, manufacturing and distribution drawn on a computer-based
management system.  Materials Logistics Management (MLM) Programme developed
in order to meet industry's requirement in this respect.  MLM help firms to gain
competitive advantage, co-ordination and appropriate cost trade-off analysis must occur
throughout all aspects of the supply, manufacturing and distribution network with the
use of computer technology.

RFID:

Radio frequency identification is a technology similar in theory to bar

code identification. With RFID, the electromagnetic or electrostatic coupling in
the RF portion of the electromagnetic spectrum is used to transmit signals. An RFID
system consists of an antenna and a transceiver, which read the radio frequency and
transfer the information to a processing device, and a transponder, or tag, which is
an integrated circuit containing the RF circuitry and information to be transmitted.
RFID systems can be used just about anywhere, from clothing tags to missiles to pet
tags to food -- anywhere that a unique identification system is needed. The tag can
carry information as simple as a pet owners name and address or the cleaning
instruction on a sweater to as complex as instructions on how to assemble a car. Some
auto manufacturers use RFID systems to move cars through an assembly line. At each
successive stage of production, the RFID tag tells the computers what the next step of
automated assembly is.

Relevance of EOQ when new models/methods like JIT have come to place:

EOQ is essentially an accounting formula that determines the point at which the combination
of order costs and inventory carrying costs are the least. The result is the most cost effective
quantity to order.  In purchasing this is known as the order quantity, in manufacturing it is known
as the production lot size. What EOQ basically does is determine the best point where the costs
for inventory holding and ordering are at the lowest. This helps to determine the number of units
of stock to order to re-supply inventory without spending too much money on overstock.
While EOQ may not apply to every inventory situation, most organizations will find it beneficial
in at least some aspect of their operation.  Anytime you have repetitive purchasing or planning of
an item, EOQ should be considered. Obvious applications for EOQ are purchase-to-stock
distributors and make-to-stock manufacturers, however, make-to-order manufacturers should
also consider EOQ when they have multiple orders or release dates for the same items and when
planning components and sub-assemblies.  Repetitive buy maintenance, repair, and operating
(MRO) inventory is also a good application for EOQ.  Though EOQ is generally recommended
in operations where demand is relatively steady, items with demand variability such as
seasonality can still use the model by going to shorter time periods for the EOQ
calculation. Methods like JIT will not work if there is any slight variation in extragenous factors
and if there is an unforseen holdup in delivery, there can be a serious loss of production whilst
awaiting parts or other materials.