Logistical Coordination Coordinating logistical flows Logistical flows are material flow, information flow and cash flow

or realization Logistical coordination is ensuring a well planned, smooth, uninterrupted and quick flow of materials in the value chain This objective is achieved by ensuring smooth flow of information in the same value chain. Realization is the result of well-coordinated flows of information and inventory Coordination takes place when logistical plans incorporate strategic customer service objectives and constraints to meet the above
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 Net work design [Location analysis] What is a network? Location of facilities and routes or links Network influences cost of product movement What is location analysis? Study of the locations & links for minimizing logistical costs and or maximizing customer service

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Some salient features of net work design  Number of facilities [factories and warehouses]  Their locations  Communication systems  What is to be performed in these facilities, What item? Store? Break bulk?  Who should operate these facilities  What should be the size of the facility? Factors to be considered in deciding the size 9. Fixed versus variable slot locations for product storage 10.Horizontal versus high rise layout
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1. Order picking versus stock replenishment activities 2. Multi-dock versus single dock layout 3. Aisle space versus rack space 4. Labor intensive or high tech operations 5. Degree of automation in picking 6. Amount of cross docking

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Number of facilities

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Importance of location analysis or logistical network design 1. This is strategic in nature. But this decision needs review periodically Changing customer service requirements. There is constant pressure to reduce lead times and costs Long term relationship or strategic partnership with suppliers Dynamics of market • Changing customers • Shifting locations of customer • Changing locations of supply market
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• Change in corporate ownership and subsequent changes in corporate policies 2. Impact of network design on cost of moving the product to the customer Analysis of logistical network yields opportunities for cost reduction No of locations influence the inventory levels (inventory cost) in the firm, the square root law Who operates these facilities? - outsourcing decisions Communication between these facilities
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3. Network design Has direct impact on ‘Delivery’ expectations of the customer and thereby on customer satisfaction. 4. Network is sensitive to Competitive action – to be able to be competitive to the customer with respect to competition 5. Network design has to accommodate corporate organizational changes such as down sizing and reengineering 6. Globalization

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Some models for facility location Gravity model Analytical models Ton-mile center

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