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hospitals, factories, etc) and the amount and type of product going through the system ((12) __________, etc).

It is also very important to analyze, cost and compare 13) ________. So, consider the following:

•The identification of all 14)_________ data and information requires consideration. There are always problems in finding and obtaining the data and information required. It may be necessary to make 15) ___________ over the data that are available. Data 16) _________ is always the largest part of a study. Data should be collected in the format in which they will be finally used in the analysis.

•A sourcing or 'flow' model is likely to be an important 17) ________ in the process of moving from a corporate to a logistics plan.

•Both cost and service elements are vital 18) _________ to the logistics planning process.

•Essential to the development of a suitable logistics plan is the need 19)

____________some fairly detailed quantitative analysis.

•Additional planning tools and 20) ________ may also be used as an add-on to this planning process, but they are normally used as a second stage. They include, for example, 21) ________ models (to determine stock levels and stock location) and vehicle 22) ________ and scheduling models (to determine fleet size and vehicle mix).

•Once a suitable logistics strategy has been identified, it is essential to undertake the dual process of 23) __________ this strategy against the preferred business strategy and ensuring that due account has been taken of any practical considerations.

1.

a) outsourcing

b) planning

c) training

2.

a) to derive

b) to deprive

c) to deprave

3.

a) quantitative

b) imputative

c) creative

4.

a) to devise

b) to define

c) to deviate

5.

a) collocation

b) lotion

c) location

6.

a) facilitators

b) facilities

c) capabilities

7.

a) consulting

b) outpouring

c) sourcing

8.

a) relationships

b) reflation

c) relaxation

9.

a) issues

b) courses

c) flows

10. a) origin

b) occasion

c) outcome

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11. a) ambition

b) destination

c) succession

12. a) throughputs

b) thought

c) throughout

13. a) graphs

b) samples

c) options

14. a) relevant

b) relent

c) redolent

15. a) composites

b) compromises

c) composts

16. a) collection

b) contribution

c) convocation

17. a) detach

b) split

c) link

18. a) insteps

b) Inuits

c) inputs

19. a) to carry out

b) to pull out

c) to take out

20. a) modes

b) models

c) modems

21. a) inventory

b) investor

c) invention

22. a) router

b) routine

c) routening

23. a) engraving

b) evaluating

c) captivating

7. Complete the following passage with the words from the list below.

a value added

demand for

 

per annum

logistics operation

variables

quantitative data

resultant model

standard

modelling process

key areas

logistics network

underpin

external factors

data

operational

qualitative

internal factors

modelling exercise

flows and costs

 

software

packages

unit load technology

to suffice

transport mode

quantitative

a major element

logistics structure

time-consuming process

collection

data collection process

descriptive measures

 

descriptive data

be

categorized into

product life cycles

numerical tables

 

 

 

 

 

 

 

 

 

 

 

 

Any number of 1) _________may be relevant in a logistics-based study, and these will of course vary according to the industry, the company, the marketplace, etc. Some of the factors that may be relevant will include:

•2) ________availability;

•infrastructure changes (e.g. new roads, rail links, etc);

•regulatory changes (transport legislation, customs regulations, etc);

•information technology (EDI, EPOS, etc);

•technology changes (new vehicle design, 3) _________, etc);

•environmental impacts;

•industry trends.

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The importance of the many 4) ________ will certainly vary from industry to industry. It is generally possible to categorize these in two ways: firstly, 5)

_________ or descriptive factors that relate directly to the operation under review; and secondly, 6) ________ facts and figures. Both qualitative and quantitative information are used to help 'describe' the business in an 7) ________context. These factors will be developed in much greater detail to represent the inputs into the 8) ________for costs, product flows and customer service requirements.

Establishing current position is 9) ________ of the study. It is aimed at producing a mathematical description of the main existing material and product 10)

_______ of the logistics operation. In addition, the respective service level requirements should also be identified. The 11) _________is then used as the basis for testing any options that are subsequently identified for analysis. This is a very detailed and necessarily 12) ___________but is essential to the study as a whole. Data accuracy is crucial because it provides the basis against which all alternative solutions are measured.

Costs and product flow: data collection section summarizes the data that will be used as the basis for determining the current situation and for the subsequent logistics modelling and analysis that will 13) _______ the entire strategy planning process. Several important decisions concerning data collection should be made very early in the 14)_________. These decisions will affect 15) _________ such as the type of data to be collected, various data categories that need to be determined and suitable time periods.

These include:

•The unit of measure: this should be suitably representative of the whole 16)

________ that is being assessed. This is often not easy to determine, as there may be several different 17) _________ that are used within a company — pallets for bulk stock, cartons for picking, and roll cages for transport. In some industries a common unit is 18) _______ — in the brewing industry, for example, the barrel is a universal measure.

•Product groups: it is not possible to model each individual product, so products must 19) _________ suitable groups that reflect similar logistics characteristics — e.g. sector (cosmetics, personal care, cleaners), format (powder, liquid, hazardous), pack type (box, bottle).

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•Customer classification: to differentiate between 20) _______ products for any different service level requirements.

•Time periods: generally a financial year is most suitable, but data collection time periods will vary if, for example, seasonality needs to be determined (several years needed for this) or if 21) __________are limited.

Typical examples of 22) ________include:

•product groups;

•own and bought-in sourcing locations;

•number and type of sites and facilities;

•major transport modes;

•handling systems used;

•unit load types;

•own versus third-party operations;

•main customer groups;

•customer service levels;

•logistics information systems.

Examples of 23) _________ are:

•major product flows;

•transport modal split for the major flows;

•demand by region, by major product group, by customer type, etc;

•market segmentation;

•customer service goals and achievements;

•carrier analysis;

•inventory holding profile;

•product profile;

•customer profile;

•planned future expansion requirements.

As well as preparing 24) ________of data, it is also a good idea to make visual representations. This can be essential in helping to understand the implications of the data in terms of the demand for different product groups in different geographical areas and the subsequent recommendations for DC location. There are many 25)_______ that provide this functionality. It is advisable to collect initial data in the format that can be used for the subsequent logistics strategy

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26)_________. This will usually include the following key variables and key data requirements:

•27) ________: - location and capacity of each plant, DC or transshipment depot; - cost functions for storage, primary transport and local delivery;

- demand locations and amounts.

•28) ______: - customer location and demand;

-DC location and throughput;

-primary transport costs (fixed and variable);

-local delivery costs (fixed and variable);

-inventory holding costs.

Quantitative data may not always be readily available, so descriptive information or alternative data may have 29) _______. For example, it may be recognized that customers can be broadly profiled in terms of, say, national accounts, key accounts, dealers, distributors and specialist users. It may not be possible to make precise quantitative comparisons in terms of tonnage distributed 30) ________to each grouping, but some type of value analysis may be available.

The quantitative data derived are crucial to the analytical process carried out and thus to the final conclusions and recommendations made. Although 31) ________is extremely time-consuming, it is important that data are correct and that they do adequately reflect the real flows and costs within the business.

Customer service requirements provide a key input to any 32)

________planning study. It is essential to understand what customer service levels need to be achieved because these will have a vital impact on the type of 33)

________ that should be developed. There is a vast difference between offering a low-cost service solution compared to 34) _________ (high-cost) solution, and the chosen approach must be reflected in the logistics structure that is chosen.

8. Match logistics models (A – E) with the texts (1 – 5). Retell the texts and reveal the main ideas of the logistics models.

A)Distribution centre location modelling

B)Heuristics

C)Simulation

D)Mathematical programming

E)Sourcing models

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