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Logistics Design and

Operational Planning
Budy Ariyanto
 AGENDA
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Introduction

Planning Methodology

SC Analysis Methods and Techniques

Summary
 Introduction
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The logistics environment is constantly evolving as
a result of changes in markets, competitors,
suppliers, and technology. To develop and focus the
enterprise strategy to match this changing Lorem ipsum dolor sit amet,
environment, a systematic planning and design consectetur adipiscing elit.
methodology is required to effectively evaluate
65%
alternatives. This unit describes a generalized Lorem ipsum dolor sit amet,
methodology that includes an overview of consectetur adipiscing elit.
techniques used for logistics planning 50%
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80%
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35%
Hirrarcy of
Planning
Planning
Methodology
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Even for established industries, a firm’s markets,
demands, costs, and service requirements
change rapidly in response to customer and
competitor behaviour. In response to these
changes, firms often face questions such as:
1. How many distribution warehouses should be
used and Notes
where should they be located?
2. What are the inventory/service trade-offs for
each warehouse?
3. What types of transportation equipment should
be used and how should vehicles be routed?
4. Is investment in a new materials handling
technology justified?
 Phase I: Problem
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Feasibility Planning
Assessment

Feasibility Assessment

Situational Analysis.

Supporting Logic
Development
Cost/Benefit Situational
Estimate Analysis. Cost/Benefit Estimate
Feasibility Assessment
The process of evaluating the need for change is referred to as feasibility assessment, and includes the activities
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of situational analysis, supporting logic development, and cost/benefit estimation
Project Planning
Statement of Objectives
Statement of Constraints
Measurement Standards
Analysis Technique
Project Work Plan
Situational Analysis
Situational analysis is the collection of performance measures and characteristics that
describe the current logistics environment
Supporting Logic Development
The second feasibility assessment task is development of a supporting logic to integrate
the findings of the internal review, external assessment, and technology study.
Supporting logic development often constitutes the most difficult part of the strategic
planning process. The purpose of the situational analysis is to provide senior
management with the best possible understanding of the strengths and weaknesses of
existing logistics capabilities for both current and future environments. Supporting logic
development builds on this comprehensive review in three ways.
Cost/Benefit Estimate
The final feasibility assessment task, the cost/benefit estimate, is an estimate of the
potential benefits of performing a logistics analysis and implementing the
recommendations
 Case study of Feasibility Study

Delivery Needed : 1000 Delivery Needed : 1000 Delivery Needed : 1000

Capacity delivery: 10 dus /
Man/Hour
Salary/ man : $400/ month
Capacity delivery: 50 dus /
Man/Hour
Salary/ man : $400/ month
Cost of Maintenance Hand Lift :
$100/Month
Capacity delivery: 100 dus /
Man/Hour
Salary/ man : $450/ month
Cost Maintenance Forklift : $ 250
Phase 2: Data Collection and Analysis
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Assumptions and
Data Collection
slide
Analysis
7
(1) defining analysis (1) defining analysis
approaches and questions,
techniques, (2) completing and
(2) defining and reviewing validating a baseline
assumptions, analysis,

(3) identifying data sources, (3) completing analyses of

(4) collecting data, and alternatives, and

(5) collecting validation data (4) completing sensitivity

analysis.
Recommendations and
Implementation
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Develop Recommendations

Alternative and sensitivity analysis results are reviewed to determine

recommendations for proposal to management. This review process includes
four tasks:

(1) identifying the best alternative,

(2) evaluating costs and benefits

(3) developing a risk appraisal,

(4) developing a presentation

Recommendations and
Implementation
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Implementation

The actual plan or design implementation is the final process activity. An adequate
implementation plan is critical since putting the plan or design into action is the
only means to obtain a return on the planning process

(1) defining the implementation plan

(2) scheduling implementation

(3) defining acceptance criteria

(4) implementing the plan

 Analysis Metodh and Technique
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High-performance logistics requires regular comprehensive
analysis of supply chain tactics and strategies. Regular
freight lane analysis is necessary to respond to rate changes
and balance of freight flows; tactical inventory analyses, to
identify items with excess inventory and to determine
the appropriate inventory target levels; and location analysis,
now often termed supply chain planning, to perform the
strategic evaluation of supply chain alternatives such as
sourcing, plant location, warehouse location, and market
service areas, increasingly important to optimize
flows for global supply chains. Dynamic simulation is used
to investigate the dynamics of multiple-stage inventories
such as among suppliers, plants, and distribution centres, and
tactical transportation analysis assists in truck routing and
scheduling. For each of these types of decisions,
the following sections describe the specific questions,
alternative analytical techniques, and Freight Inventory Analysis Location Decisions Transportation
typical data requirements. Lane
Analysis
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Thank You
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