Logistics and Transportation Design and planning

Logistics is a $700 billion industry in the USA and is the second largest employer of college graduates. Logistics costs account for nearly 30% of the sales dollar, and logistics activities are essential to satisfying the ever- changing customer demand in

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Logistics and Transportation Design and planning

Raja G. Kasilingam Director of Operations Research/Service Design CSX Transportation Jacksonville Florida

USA

SPRINGER -SCIENCE+BUSINESS MEDIA, B.V.

A c.I.P. Catalogue record for this book is available from the Library of Congress

lSBN 978-1-46l3-7407-7 ISBN 978-1-4615-5277-2 (eBook) DOI 10.1007/978-1-4615-5277-2

AII rights reserved.

© 1998 Springer Science+Business Media Dordrecht

Originally published by Kluwer Academic Publishers in1998 Softcover reprint ofthe hardcover Ist edition1998

No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior permission from the copyright owner.

Contents

Preface Acknowledgements

xi xiii

Chapter 1

Introduction to logistics and transportation 1.1 Introduction 1.2 Scope of logistics 1.2.1 Purchasing 1.2.2 Inventory control 1.2.3 Facilities planning 1.2.4 Intra-facility logistics 1.2.5 Transportation 1.3 Logistics interfaces 1.3.1 Finance 1.3.2 Marketing 1.3.3 Information technology 1.3.4 Production 1.4 Logistics profession 1.4.1 Careers in logistics 1.4.2 Professional logistics organizations 1.5 Organization of the book 1.6 Summary Problems References Further Reading Training aids: videotapes Useful addresses

1 1 6 6 7 7 7 8 8 9 9 10 10 10 11 13 14 16 17 18 18 19

Chapter 2

Logistics systems analysis 2.1 Introduction 2.2 Phase 1: problem definition 2.2.1 Level of detail 2.2.2 System objectives 2.2.3 Logistics product 2.3 Phase 2: data analysis 2.3.1 Data collection

20 20 21 22 23 23 25 27

vi

Contents 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6

2.4

2.5 2.6

Chapter 3

Chapter 4

Sample size Outlier screening Data aggregation Estimating missing or unavailable data Probability distributions: form and parameters Phase 3: problem analysis 2.4.1 Mathematical models 2.4.2 Heuristic methods 2.4.3 Simulation methods 2.4.4 Guidelines for strategy formulation Phase 4: system implementation Summary Problems References Further reading Training aids: software and videotapes

28 29 29 30 35 38 38 39 40 40 42 43 44 45 45 46

Logistics network planning 3.1 Introduction 3.2 Logistics network model 3.3 Logistics network modeling approach 3.4 Components of the logistics network mode 3.4.1 Vendors 3.4.2 Products 3.4.3 Plants 3.4.4 Distribution centers 3.4.5 Transportation services 3.4.6 Customers 3.5 Generalized logistics network model 3.5.1 Model specification 3.5.2 Generic solution procedure 3.5.3 General guidelines in using the network model 3.6 Summary Problems References Further reading Training aids: software and software libraries

47 47 48 49 50 50 50 51 51 51 52 52 53 53 54 55 55 56 56 56

Vendor selection 4.1 Introduction 4.2 Classification of vendor selection decisions 4.3 Empirical methods 4.3.1 Factor analysis

57 57 59 60 61

Contents

4.3

4.5

Chapter 5

Chapter 6

4.3.2 Weighted factor analysis 4.3.3 Vendor profile analysis 4.3.4 Analytical hi