MODULE OVERVIEW

Logistics is the management of inventory, in motion and at rest, to serve customers.  The goal of this module is for candidates to develop an understanding of the position and role of logistics in supply chain management, and the need to integrate the logistics functions (primarily customer service, inventory management, transportation, and warehousing) as part of the supply chain strategy.  This module covers the fundamental logistics functions, as well as the strategic integration of those functions.

The focus of this module is on strategic management and integration of the logistics functions.  Inventory management is at the heart of logistics with a focus on inventory in motion (transportation) and at rest (warehousing), to provide service to customers.  Module 3 includes a discussion on the role of third-party logistics (3PL) providers in logistics and SCM, along with the issue of reverse logistics - moving goods back up the supply chain for various reasons.

Strategic logistics decisions often involve trade-offs, e.g., moving large shipments of goods reduces transportation costs but increases the inventory carrying costs.  Thus, many of the sessions in this module are naturally linked.  A computer simulation included in this module requires candidates to apply concepts and tools learned throughout this module.

MODULE GOALS

Upon completion of this module candidates should be able to:

• Understand the impact of organizational structure on integrated logistics management
• Create and run a supply chain simulation model
• Analyze location alternatives and make a recommendation
• Use the simulation model to plan for expanding operations and create a report on simulation challenges and results
• Appreciate inventory cost trade-offs (e.g., carrying costs vs ordering costs)
• Understand the interaction between transportation and inventory decisions - and compute the ETQ