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LOGISTICS SYSTEMS
Logistics Systems
• Alogistics system is made up of a set of facilities linked by transportation services.
• Facilities are sites where materials are processed, e.g. manufactured, stored, sorted, sold or consumed.
• They include manufacturing and assembly centres, warehouses, distribution centres (DCs), transshipment points, transportation terminals, retail outlets, mail sorting centres, garbage incinerators,
Logistics Systems – cont’d
• Transportation services move materials between facilities using vehicles and equipment such as trucks, tractors, trailers, crew, pallets, containers, cars and trains.
How Logistics Systems Work
• Logistics systems are made up of three main activities:
1. Order processing
2. Inventory management 3. Freight transportation
Order processing
Order processing is strictly related to information flows in the logistics system and includes a number of operations:
• Customers request products by filling out an order form.
• Orders are transmitted and checked.
• Availability of the requested items and customer’s credit status are then verified.
• Items are retrieved from the stock (or
produced), packed and delivered along
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