Professional Documents
Culture Documents
Chapter 5
Sections:
1. Introduction to Logistics
2. Transportation Operations
3. Material Handling
4. Analysis of Material Handling Operations
Introduction to Logistics
Origins in military science
Procurement, transportation, and
maintenance of military supplies,
equipment, and personnel
Business logistics
Acquisition, movement, storage, and
distribution of materials and products, as
well as the planning and control of these
operations to satisfy customer demand
May also involve movement of people
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Work Activities
Various combinations of physical labor and
information processing
Physical labor
Moving materials, work-in-process, and
finished products
Information processing
Planning, coordinating, and controlling the
physical movement
Importance of Logistics
Sometimes viewed as non-value-adding
By comparison, manufacturing and
assembly activities add value by physically
transforming materials
Logistics does not alter the product
However, logistics operations create a time
and place value for customers
Having the materials and products available
and getting them to customers when
needed or wanted
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Supply Chains
Defined as the set of activities that is concerned
with the flow of materials and products from
raw materials through production and
distribution of finished goods to customers.
Supply chain management = the planning,
coordination, and administration of the flow of
materials and products in the supply chain
Supply Chain
Block diagram depicting participants and activity
sequence in a supply chain
Warehousing
A warehouse is a facility for storing three types of
inventory:
1. Raw materials in the procurement process
2. Maintaining work-in-process for
manufacturing support
3. Making finished goods available for
distribution
Warehousing Functions
1. Receive unload incoming materials, inspect
the materials, record receipt
2. Store put the materials into storage and
record the storage location
3. Pick (order picking) retrieve materials from
storage in response to customer orders
4. Ship pack materials for shipment and load
the carrier vehicle
Different
combinations of
products are
shipped from
suppliers to
outlets through
the DC
Improvements in Warehousing
Automated and mechanized storage systems
reduce labor costs, speed the storage and
retrieval of materials
Cross-docking incoming items are sorted and
shipped without being placed in storage
Warehouse management systems for
maintaining inventory records, managing
transportation operations, optimizing storage
locations, and reporting labor performance
Transportation Operations
External logistics
Transportation expenses consume between
one-third and two-thirds of the total costs of
logistics
Freight transportation industry in the U.S.
represents approximately 6% of gross
domestic product
Approximately $500 billion
Rail
Truck
Air
Ship
Pipeline
Transportation Infrastructure
Transport vehicles
Planes, trains, and trucks
Rights-of-way
Airways, RR tracks, roads and highways
Industrial organizations that provide
transportation services
Government agencies that oversee the
transportation industry
Transportation Terms
Carrier company that provides the
transportation service
Shipper company that engages the services
of a carrier
Consignee company that receives the
shipped materials
Rail Transport
Efficient movement of large tonnage over long
mileage
Disadvantage slow mover
Applications:
Raw materials located away from
waterways (coal, ore, lumber)
Low value manufactured goods (paper,
wood products)
Intermodal freight
Trucking Operations
Deregulation of the trucking industry
Motor-Carrier Act of 1980 - encouraged
competition, improved efficiencies
Higher intercity tonnage movement than any
other transportation mode
Suited to high-value finished products and
semi-finished items over short and medium
distances
Movement of merchandise
Delivery of components/ subassemblies
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Trucking Operations
Truckload (TL)
Loads greater than 15,000 lb
Direct shipper to consignee
Lower total cost to shipper
Less-than-truckload (LTL)
Loads less than 15,000 lb
Stops along the route result in longer
delivery times
Higher per ton-mile rates
Cheaper for small load sizes
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Air Transport
Air passenger travel most visible
Freight service also available
Major airlines provide freight service
UPS and FedEx specialize in movement of
Packages
Large containerized loads
Suited to delivery of high-value items over long
distances and time is a factor
Air Transport
Advantage
Speed of delivery over long distances
Disadvantages
Airports not conveniently located
Delivery times include local delivery times:
Shipper-to-airport
Airport-to-consignee
High per ton-mile costs
Water Transport
Dominant mode of freight transportation in
global trade
Ships
Rivers and canals: flat barges
Coastal waters and Great Lakes: deepwater vessels
Domestic transport: very large shipments
Time: slowest
Cost: lowest
Supplemental transport usually required
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Pipelines
Disadvantages
Limited in types of materials that can be
moved (e.g., gases, liquids, slurries)
Slow (e.g., 4 mi/hr in Alaska pipeline)
Advantages
Material moves 24 hours per day
Not affected by weather conditions
No empty containers or vessels
Intermodal Operations
Transportation Agencies
Provide specialized transportation services
Intermediaries between shippers and
carriers
Purchase high-volume, low-cost rates
from shippers and sell the transportation
service to small-lot shippers at fees the
shipper would not be able to obtain
Consolidate small lots into large
shipments
Material Handling
Defined as the movement, storage, protection
and control of materials throughout the
manufacturing and distribution process
including their consumption and disposal (The
Material Handling Industry of America)
Estimated to represent 20-25% of total
manufacturing labor cost in US
Internal logistics
Material transport
Storage
Unitizing equipment
Identification and tracking systems
Five categories:
1. Industrial trucks
2. Automated guided vehicles
3. Monorails and other rail guided vehicles
4. Conveyors
5. Cranes and hoists
Industrial Trucks
Two basic categories:
1. Non-powered
Human workers push or pull loads
Low volume
Short distances
2. Powered
Self-propelled
Larger loads
Greater distances
Common example: forklift truck
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Forklift Truck
A unit-load
automated guided
vehicle
Rail-Guided Vehicles
Fixed rail system
Overhead monorail - suspended overhead
from the ceiling
On-floor - parallel fixed rails, tracks
generally protrude up from the floor
Powered by electrified rail
Routing variations: switches, turntables, and
other special track sections
Overhead Monorail
Conveyor Systems
1. Non-powered
Materials moved by human workers or
by gravity
2. Powered
Power mechanism for transporting
materials is contained in the fixed path,
using chains, belts, rollers or other
mechanical devices
Conveyor Types
Roller Conveyor
Common conveyor
type
Can be powered or
unpowered
In-floor Towline
Storage Systems
Function to store materials (e.g., parts, workin-process, finished goods) for a period of time
and permit retrieval when required
Used in factories, warehouses, distribution
centers, wholesale dealerships, and retail
stores
Important supply chain component
Automation available to improve efficiency
AS/RS