5.4.

Elements of Logistics and Supply Chain Management:

Units Title No. of

Lectures
I Background 15
 Logistics and Logistical Management: Military origin/ basic concept /
definitions/ scope/ importance in current competitive environment
 Evolution of Logistics & Supply Chain Management
 Topics to be covered at concept level: Operating Objectives of Logistics/
Logistical Performance Cycles/ Inbound Logistics/ Manufacturing support
Logistics/ Outbound Logistics/Customer Order Cycle/ Lead-time/ Logistical
interfaces/ Logistical mission/ Competitive Advantages/ 3 C’s/ Logistical
competency/ Outsourcing Logistical Activities/ 3rd and 4th party Logistics/
Integrated logistics/ Logistical Planning & Strategy.

Supply Chain Management

Basic concept/ definitions/ scope/ Comparison between Logistics and SCM/
Global Supply Chain scenario and importance/ Conventional Supply chains/
Supply chain participants/ channel agencies/ Relationship Management,
concept of extended enterprises/ Bull-whip effect.

Organization structure
 Basic concept/definitions/scope/objectives and importance
 Barriers In Forming Effective Organization, improving effectiveness
 Stages in evolution of logistical organization, with emphasis on modern flat
organization

Customer Service
 Definition / Scope / Objectives/Importance
 Elements of Customer Service, Seven Rights
 Customer Service Audit, Customer Service Strategy

Demand Forecasting
Definition/ Purpose of Forecasting/ Nature of Demands/ Forecasting
Components/ Approaches to forecasting/ Qualitative & Quantitative Forecasting
Techniques & their applicability, Time series analysis with numerical examples.
(f) Order Processing:
Integrated System / Customer Order Cycle / Electronic Data Interchange & its
Advantages

II Transportation: 15
 Definition/Principles/Role/Functions/Importance
 Different Modes of Transportation: Road, rail, water, air, pipelines,
ropeways
 Advantages & Disadvantages of individual modes/Inter-Modal
Transportation/ Factors to be considered for Mode & Carrier Selection /
Modal characteristics & Classification
 Total Transportation Cost / Factors influencing Transport Cost / Transport
Infrastructure
 Warehousing
 Definition/Principles/Role/Functions/Importance
 Warehouses/Distribution Centers / Warehousing / Need For
Warehousing/Economic/Service benefits
 Types Of Warehouses - Their Advantages & Disadvantages/ Warehousing
Location/ Area Of Warehouse/ Number of warehouses/ Warehousing
Operations/ Factors Affecting Warehousing Cost/ Warehouse Layout/ design
principles.

Materials Handling System

 Definition/Principles/ Role/ Functions/ Importance
 Activities Covered / Functions Performed During Materials Handling /
Material Handling Equipment with selection criteria / Material handling
methods/ M. H. System Design – Objectives & Principles.

Packaging
 Definition/Principles/ Role/ Functions/ Importance
 Unitizing (Concept of unit-load) & palletizing/ kitting
 Logistical Functions of packaging/ Objectives & Benefits of Packaging/
Consumer & Logistical Packaging/ Factors Influencing Good Package
Design

III. Inventory Management 15

 Inventory: Definition/Principles/ Role/ Functions/ Importance/ Purpose of
Inventory Holding / Types of Inventories/ Inventory and profitability/
Impact of Inventory on total logistical cost.
 Inventory Management: Objectives/ Importance/ Symptoms of Poor
Inventory Management/ Improving effectiveness of Inventory Management/
Inventory turnover/ Service Levels

Economic Order Quantity/ Economic Batch Quantity/ Assumptions & Its

Limitations/ Re Order level/ Safety Stock with numerical examples.

Inventory Control: Inventory ranking methods and Quadrant Technique

Selective techniques of Inventory Control: Inventory control methods:

(Pull/push models)Traditional methods: ‘Q’ MODEL & ‘P’ MODEL, two
bin system, fair-share allocation model, MRP I / MRP II

Modern methods: kanban as a tool of JIT, Vendor managed inventory (JIT

II, response based techniques-QR, CR, and AR). DRP, ERP

Inventory valuation
Information System
 Definition/Principles/Role/Functions/Importance
 Management Information System: Elements of LIS/ Advantages of
Computerization of Information/ Importance of Information system/ Internal
& external Information System / Functionality (IS operations)/ Automated
Order Processing System, RFID, EDI/ Satellite tracking system.
 IV (i) Performance Measurement 15
 Definition/Principles/Role/Functions/Importance/Objectives
 Activity based/process based/ Internal/External Performance Measurement
 Classification of performance measures
 Performance Auditing / Perfect Order/ Service Levels
 Characteristics of ideal performance evaluation system

(ii) Logistics Costing: Principles of Logistics Costing/ Activity Based Costing /

Mission Based Costing/ Total Cost Analysis/ Steps to Be Adopted For Total
Cost Approach

(iii) Logistical Network analysis: Concepts/ definitions/ scope/ objectives/

importance Network options/ number of facilities/ Milk-runs/ RORO/ LASH.

(iv) Modern Logistics Infrastructure

 Containerization/ mechanized material handling equipment/ Deep water
ports/ ICDs & CFS network/ maritime logistics/ cold chain logistics
 Dedicated Freight Corridors/ Golden Quadrilateral and network of highways
 Specialized equipment/ double stack containers/ unit trains
 Logistics Parks
 Container Corporation of India
 Private Logistics Companies.

Reference Books

1. Donald J. Bowersox, David J Closs, M Bixby Cooper , “Supply Chain Logistics

Management”
Tata McGraw-Hill
2. Donald J. Bowersox, David J Closs , “Logistical management”, Tata McGraw-Hill
Fundamentals of Logistics Management McGraw-Hill
3. Douglas M. Lambert, James R.Stock & Lisa M. Ellram Irwin, “The management of
Business Logistics Coyle”, Bardi, Langley Thomson, South – Western
4. Stephen Lemay, Joe B , “Logistics David J Bloomberg”, Hanna Prentice Hall of India
5. M Martin Christopher, “Logistics & S C”, Pearson Education
6. Chopra Meindl, Kalra, “Supply Chain Management’.
7. Herald Dyckhoff, Richard Lacks and Joachin Reese, “Supply Chain Management’.
8. Anurag Saxena, Caaushik Sircar, ‘Logistics and Supply Chain Management – Text and
Cases” - Jaico Publishing House, Mumbai, 3rd Edn 2009.