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1 Question1 the element of logistics (2)

1.1 Definition of supply chain management (2)

1.2 Definition of logistic (2)

1.3 Logistics network (2)

1.4 The element of logistics (3)

2 Question2 the element related to object of logistic (3)

3 Question3 system approach (4)

1Question1 the element of logistics

1.1Definition of supply chain management

Supply Chain Management:Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.1

1.2Definition of logistic

Logistic: is the management of the flow of the goods, information and other resources in a repair cycle between the point of origin and the point of consumption in order to meet the requirements of customers. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software.2

1.3Logistics network

By the right graph, we can see the

complex supply chain in the

relationship, basically have seven

elements in operation, the first step

is establish distribution network,

through the structure, to determine

how searching for an appropriate

location, the cost to the minimum.

The second step, because the market uncertainty and instability, leading to supply and demand imbalance, so have to inventory on a reasonable calculation, get a supply and demand balance. The third step, by setting up the necessary strategies of unbalanced supply and demand of region adjusted, and optimize the resources. Fourth step is, the 11website:https://www.wendangku.net/doc/838073484.html,/Website/AboutCSCMP/Definitions/Definitions.asp

22website: https://www.wendangku.net/doc/838073484.html,/wiki/Logistics

strategic partner, discuss on supply chain process to achieve the conformity of

inventory reduction. Fifth step is, on product design and make corresponding

adjustments to cooperate with supply chain management and operation. Step six is

fully utilize information technology on supply chain is optimized, in the information

age, the enterprises must reasonable use of information technology, in this respect,

information technology is not a lack of object, have can be contributed to the role.

The step seventh , customer value is the enterprise with the customer generated by the

contributions of measurement, but firms offer product, service and intangible things

such as project consisting of enterprise, which is an important examination.

1.4 The element of logistics

●Distribution Network Configuration

●Inventory Control

●Distribution Strategy

●Supply Chain Integration and Strategic Partnering

●Product Design

●Information Technology and DSS

●Customer Value

Distribution Network Configuration: how to select the reasonable position of the

warehouse, and determine each factory and each item of manufacturing standard, and

set up the factory from the warehouse to warehouse or from the retailer's

transportation system, ability makes the production cost, inventory cost, transportation

cost minimization and service level to meet the customer's requirements.

2Question2 the element related to object of logistic

Supply chain management is concerned with the efficient integration of suppliers,

factories, warehouses and stores so that merchandise is produced and distributed in

the right quantities find to the Array right locations under the right

time.

.

The right chart shows us, the

response time and the cost have

some relationship on the supply

chain, if response time has long time,

the cost must low. The local FG

(finish goods) need short response

time in the product, but the cost is very high, the other hand, the local WIP need same response time in the product, but the cost just half of the local FG , Which the risk is danger in the supply chain, long time in the response time, can make the production sale decease, so the company need short time when product FG of low cost

The right chart shows us. So we know if

the company has more facilities in the

factory, they can make lots of the

production in the same time with other

company. They could become leader in

the industry, but if market has not demand,

the company product is not good at sale,

the risk is much serious, and it is easy to

make company have the stock problem. A

decrease in the response time customers, desire increases the number of facilities required in the network, so the response time must short time with low facilities in the company.

The right chart is tell us, the cost and facilities in the supply chain have game

theory ,that We know how much and the cost of facilities, the relationship between

the concrete has three aspects composition:

innovation, the facilities cost and transport, diagram can know, facilities more and more,

with innovative technology and so on also want to rise, representative costs rise, but

also, equipment maintenance cost also rise, but transportation cost, explain the company but falls in the later costs far higher than earlier in the supply chain adjustment, transportation costs have not occupy an important module, turn later input.

3 Question3 system approach

The system approach is about the

inter-relationship between factors that

make up the logistics system . So that we

know the company should be how do to it.

Supply chain management by the previous

vulgar production to customer demand

subdivision type supply chain

management, namely attaching more

importance to the customer. Namely

Transportation C Number of Facilities Facilities o s t o f O p e r a t i o n s Inventory Labor

regard customer as the major premise, through supply chain in all parts of the close cooperation, beneficial for the company balance each part in costs, and combining with the cooperation between enterprise and the advantages and further the coordination and efficient for product cost provides has cost advantages, differentiation advantage of the products and services. It is cost advantage that integrated supplier, manufacturers and distributor, by establishing integrated supply chain guarantee information, capital, logistics and service flow safety smooth flow. Supply chain management system integration of realizing whole optimization automation management system, make the total cost of these conditions to further optimize and minimize the enterprise, in order to achieve best interests. And the company best work is like to top line on the right chart.

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