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Chapter 12:
Logistics and Distribution
For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Understanding Physical Distribution
Total Cost of PD
Inventory Cost
Lost Sales
Transporting Cost
0
0 90% Customer Service Level
Exhibit 121
122
For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Coordinating Logistics Activities
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123
Sharing and Shifting
Reducing Conflict
JIT
Chain of Supply
Better Information-EDI and Internet
For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
The Transporting Function
Rail Modes Truck of
Transportation
Air
Pipeline
Water
124 For use only with Shapiro, Wong, Perreault, and McCarthy text
Copyright © 2002 McGraw-Hill Ryerson Limited
The Storing Function
Price Stability
Flexibility
Costs
Specialized Function
125 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
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