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1) With multiple products from multiple sources it is only too easy to assume that the lowest-cost solution is to source each market from the closest available plant with available capacity. In some situations this is true, but if plants have significant changeover (set-up) times it may be more cost-effective to have long production runs, high inventory and high transport costs. Thus, the first step in rationalizing a logistics system is to investigate optimal sourcing patterns. One definitive pattern may not be sufficient, as sourcing could change according to market conditions, product price, raw material costs and transport costs.

All available sources are described with capacities, changeover penalties and raw material costs. Approximate logistics costs from sources to markets are defined as linear cost functions. Under any given demand scenario the technique is able to identify the optimum solution for the sourcing of products. Most spreadsheet packages have an optimization feature that allows this type of analysis to be undertaken. A typical model equation operates under the following constraints:

•the availability of each plant for production and changeover;

•that customer demand should be met;

•the least-cost solution is required.

The objective of this model equation is to minimize the following, given the run rate of each product at each plant:

•raw material cost;

•material handling cost;

•production variable cost;

•logistics cost from plant to customer.

2)The output from a sourcing study is the optimized major product flows from source points to final customer. The next stage is to take these flows and to develop the most cost-effective logistics solution in terms of the most appropriate number, type and location of DCs, transport mode, etc. Thus, the overall trade-offs of the supply chain are considered and assessed during the sourcing study, and a preliminary sourcing allocation is made. The detailed logistics of modes, rates and site structure can now be considered using a DC location study.

Cost trade-off analysis can be used as the basis for the planning and reassessing of logistics and distribution systems. Clearly, this approach is a time-consuming and often daunting task, not least because of the difficulty in obtaining the

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appropriate data and information from within a company's accounting system, but also because of the somewhat complicated models that have to be used.

3)It uses a number of well-known techniques (such as linear programming) that are particularly applicable to solving the DC location type of problem. They are prescriptive, using a logical step-by-step procedure to reach the optimal or 'best' solution. The main drawbacks with these techniques are that linear relationships are not always adequate (if linear programming is used) and some solutions can be 'local' optimums, that is, they are not the best from the overall point of view.

4)A method of solution that is derived on a 'rule-of-thumb' principle. It is determined by using experience and common sense to reject unlikely solutions from the outset. In this way, problems can be reduced to a more manageable size in terms of the number of alternatives that need to be tested. This type of approach is often very valid for DC location problems, because there are always a number of locations that are totally inappropriate.

5)A widely used operational research technique, which is capable of representing complex problems and cost relationships. It is not an optimizing technique, so does not produce the 'best' answer, but it is descriptive of the different relationships and is used to evaluate any alternatives. The inability to produce optimal solutions has previously been seen as a drawback, but in fact a carefully derived model, used with the practical expertise of a distribution specialist, is likely to result in realistic and acceptable solutions that can be readily implemented. Such models allow for various 'what if' questions to be asked to test alternative strategies.

9.Translate the following from Russian into English.

В цепях поставок производится перевозка грузов и товаров между различными географическими пунктами с применением обычных средств транспорта – автомобильного, железнодорожного, речного, морского и воздушного транспорта.

На предприятии оптовой торговли (в центре распределения товаров) к внешней логистике относится поставка на склады предприятия, перевозка товаров между складами самого предприятия, а также со складов предприятия к клиентам.

Процессы обработки товаров на складах предприятия должны рассматриваться как процессы внутренней логистики. Чаще всего модели

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внутренней и внешней логистики создаются и исследуются отдельно друг от друга, но в некоторых случаях создаются и комплексные модели.

Модели сетей поставок в силу ряда объективных причин не являются «массовым продуктом», производимым специалистами по имитационному моделированию. Сложности возникают уже на этапе формирования концептуальной модели, в рамках которой чётко должны быть определены, в частности, следующие моменты:

где будут проходить «границы системы», что будет являться её входными и выходными потоками;

какие географические пункты и транспортные каналы должны быть приняты во внимание при описании пространственной структуры системы; какими видами транспорта, по каким тарифам должны осуществляться перевозки, кто из участников процесса поставок должен предоставить

транспортные средства; каково будет расположение мест промежуточного хранения и перевалки

грузов, какие будут условия и тарифы для выполнения этих операций; какие предусматриваются ограничения и соответственно степени свободы

при выборе средств транспорта, правил их загрузки, маршрутов движения, пунктов отправки грузов, пунктов промежуточного складирования и перевалки;

каких «стандартных стратегий» управления сетями поставок должны придерживаться участники процесса поставок;

к какому периоду времени относятся данные от клиентов о спросе на выполнение поставок, насколько полным и надёжным являются эти данные.

Вполне естественным является предположение о том, что любой из перечисленных выше аспектов организации сети поставок может рассматриваться как «варьируемый» фактор при проведении соответствующего исследования. Это значит, что моделирующая программа должна предоставить возможности для ввода исходных данных, имеющих весьма сложную структуру, сильно отличающихся от обычных двумерных таблиц. Дополнительные трудности при разработке модели могут возникнуть вследствие её размерности, так как число поставщиков, клиентов,

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исполнителей логистических услуг, географических пунктов и типов поставляемых продуктов может достигать нескольких сотен.

II. Watch the video “Transportation tips” and do exercises.

Words to remember: barge – баржа

B-double – автопоезд chase – преследование

cherry picking – применение избирательного подхода cost driver – затратная составляющая

coastal – прибрежный

daunting – пугающий, устрашающий

dock leveler – приспособление для дифферентовки плавучего дока escalade – наращивать, возрастать

fatigue – усталость, утомляемость finger dock – пирс

freight profile – фрахтовый профиль fuel surcharge – топливный сбор

high cube containers – контейнер повышенной вместимости jeopardize – подвергать опасности

nasty – неприятный, угрожающий

outbound transport cost – исходящие транспортные расходы peer – равный по уровню или техническим возможностям ramp – спуск к воде

semi-trailer – полуприцеп

trunking route – магистральные маршруты

1. While watching the video, answer the following questions.

1.What does the movement of goods through the supply chain rely on?

2.How much did fuel surcharge increase in Australia between 2005 and 2008? Did it have any impact on modes of transportation internationally?

3.What changes in Australian legislation were implemented in 2008?

4.What do you need to know to control your costs?

5.What kind of special requirements should your providers know to provide you with valid cost of service information?

6.What basis of quote should you understand?

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7.What is B-double?

8.What nasty surprises can obviously impact your costs?

9.Why should fuel surcharge be taken into account?

10.Why should you look for alternatives in transport?

2.Watch the video fragment again and fill in the gaps with the missing words given above.

Increasing the number of 1) ________, increases the number of contracts within your business from operations, warehouses and dispatch right through to the accounts. In reviewing transport needs for our customers we use a 30 point 2) ________. Some tips for you from this check list are:

1.Understand the 3) _________. Has the transport provider quoted in cubic meters, kilograms, pallets or spaces, they’re all different. Where a 4) ________ stated is this for 22 spaces which is 5) _________ or is there for the further rate for 34 spaces which would be a B-double? A 6) ________ is a regular semitrailer with an additional trailer. It takes a vehicle length from 19.5 meters to 25 meters. When shipping containers are utilized, does the full container rate apply to a simple 7)

________? Have you been provided with rates for 40 foot containers or for 8)

_________? These should be clearly explained on your quote. Your perspective service partners should be prepared to discuss and confirm this with you.

2.Tip 2. Avoid nasty surprises by knowing difficult 9) _________. Some of your key customers may be outside of metropolitan delivery areas. They may also be off the regular line haul or 10) ________, requiring stock to effectively double back on itself. Some facilities schedule and inspect deliveries 24 hours 7 days a week. Facility design elements, for example, 11) ________, dock levelers or the reverse extreme where there are no docks or ramps at all can constrain the type of equipment that can be used to complete your deliveries. All of those factors can obviously impact cost.

3.Tip 3. Understand the 12) _________. Note that it will differ between carriers and 13)

_________. Ask for documentation supporting the basis of calculation and ask how frequently the fuel surcharge will be reviewed and revised.