Explain the impact of streamlined distribution in different networks. (Please refer to the given lesson)
Explain the impact of streamlined distribution in different networks. (Please refer to the given lesson)
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Explain the impact of streamlined distribution in different networks. (Please refer to the given lesson)
Transcribed Image Text:Streamlining distribution entails making optimum use of all technologies used in
logistics and distribution centers' operations. It should be noted that the scope of logistics
and distribution process planning is not confined to production, transportation, or
distribution planning. It includes every aspect of the logistics and distribution process.
Without a doubt, the activity of logistics and distribution centers has a significant impact
on the entire logistic network (supply chain), hence their proper operation is critical. To
improve the efficiency of logistics and distribution facilities, the criteria by which they are
evaluated should be defined.
●
Sales Planning - can be defined as the process of converting a demand forecast
into a workable operational plan that producers and salespeople can use. This
procedure may include production planning and/or supply chain optimization to
determine the likelihood of meeting demand
Stock planning - enables for the best volume and positioning of finished goods to
fulfill end-user demand and service levels. Stock planning is used to calculate the
ideal level of safety stocks at each location in principle.
• Supply chain Planning - Based on multi-level sources and crucial commodities,
supply chain planning compares demand forecasts with actual demand to
generate a "master plan" (schedule). To synchronize and optimize production,
distribution, and transportation, the master plan designed encompasses the points
of production and distribution destinations.
Production Planning - Production planning refers to the creation of a master plan
for a single factory (producers). The master plan takes into account material
availability, production capacity, demand, and other operational aspects.
The production planning cycle is a complicated process that, in most cases, is
viewed as the beginning of the logistics and distribution operations. When similar
operations are viewed from the other perspective (i.e., semi-products and raw
materials are required for the creation of certain products and are delivered to the
factory), they represent the plant's final products and the end of one portion of the
logistical chain.
Distribution Planning - The formulation of a feasible and viable plan for delivering
final products from producers to end users (through logistics and distribution
centers, warehouses, or cross-docking) is referred to as distribution planning. The
actual transportation costs and needs that represent single goods locations are
used to design distribution.
Transport Planning - For dispatch cost minimization, transportation planning
employs current transport prices. Transport planning entails optimizing both the
external and internal goods flow to reduce transportation costs and maximize fleet
utilization. Allowing and performing collective (bundled) transit of commodities, as
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