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LOGISTICS CONCEPTS AND SUPPLY CHAIN
Learning outcomes
At the end of this lecture, students should be able to
Understand the various concepts of logistics
Understand the main logistics elements
Understand the supply chain management concept
Differentiate Supply chain from Logistics management
LOGISTICS CONCEPTS
3
Trade-off/Total Cost
Value Added Lead Time
Outsourcing Just in time
Integration/linkage (backward/forward)
Gohoho Emmanuel Sena
LOGISTICS COSTS CONCEPTS
Total costs
concepts
One of the main aims of
logistics is to:
“minimise the total cost of doing business rather than the cost of doing individual activities”
Total costs cont’d
Total logistics costs consider the whole range of costs associated with logistics, which includes transport and warehousing costs, inventory carrying, administration and order processing costs.
Any change made in one aspect of an organisation is likely to have an effect on the cost of other aspects and in effect, the overall cost because - the individual
activity costs are related.
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