Logistica

Logistics
An Introduction to Supply Chain Management

Donald Waters

Logistics

Logistics
An Introduction to Supply Chain Management

Donald Waters

© Donald Waters 2003 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with writtenpermission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author hasasserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2003 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St.Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 0–333–96369–5 paperback This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is availablefrom the British Library. Library of Congress Cataloging-in-Publication Data Waters, C. D. J. (C. Donald J.), 1949– Logistics : an introduction to supply chain management / Donald Waters. p. cm. Includes bibliographical references and index. ISBN 0–333–96369–5 (paper) 1. Business logistics. 2. Industrial management. I. Title. HD38.5 .W384 2002 658.5—dc21 2002073544 Editing and origination byAardvark Editorial, Mendham, Suffolk 10 9 8 7 6 5 4 3 2 1 12 11 10 09 08 07 06 05 04 03 Printed in Great Britain by Ashford Colour Press Ltd, Gosport

To Dan and Sue

Contents

List of Figures Preface

ix xi

4

Implementing the Strategy
Relating Strategy to Lower Decisions Areas for Decisions in Implementation Managing Change Discussion Questions References

82
83 85 95 103 103PART I

Introduction
1 The Context of Logistics
Introduction Definitions The Supply Chain Activities of Logistics Aims of Logistics Importance of Logistics Discussion Questions References Further Reading

1
3
4 4 7 12 17 19 25 26 26

5

Locating Facilities
Importance of Location Choosing the Geographic Region Infinite Set Approaches Feasible Set Approaches Network Models LocationPlanning Discussion Questions References Further Reading

104
105 109 113 119 126 130 136 136 136

2

Integrating the Supply Chain
Progress in Logistics Current Trends in Logistics Integrating Logistics Within an Organisation Integration Along the Supply Chain Achieving Integration Discussion Questions References

27
28 30 34 39 43 53 54

6

Planning Resources
Types of Planning CapacityPlanning Adjusting Capacity Tactical Planning Short-term Schedules Discussion Questions References Further Reading

137
138 139 144 150 158 165 165 165

PART II

7

Controlling Material Flow
Material Requirements Planning Extending the Role of MRP Principles of Just-in-time Achieving Just-in-time Operations Extending JIT Along the Supply Chain Discussion Questions References FurtherReading

166
167 174 178 183 189 194 194 195

Planning the Supply Chain
3 Logistics Strategy
Strategic Decisions Logistics Strategy Strategy Options Designing a Logistics Strategy Discussion Questions References

57
59
60 62 66 73 80 80

viii

CONTENTS

8

Measuring and Improving Performance
Measuring Performance Comparing Performance Analysing a Supply Chain Improving...