After completing this chapter, students will be able to: define who customer is, understand the four genetic service outputs theories developed by bucklin, understand the role of a customer service, understand the fundamental attributes of customer service, understand element of customer service. | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 28 1 Consolidation warehouse A A B C D B C D Manufacturer A Manufacturer B Manufacturer C Manufacturer D 10,000 lb. 8,000 lb. 15,000 lb. 7,000 lb. 40,000 lb. Customer Consolidation Warehouse Similar to a merge-in-transit facility 11-6 CR (2004) Prentice Hall, Inc. Distribution warehouse Manufacturer Customer B Customer C Customer A Low rate TL shipment LTL LTL LTL Distribution, Break Bulk, or Pool Point Warehouse Warehouse may or may not hold inventories 11-7 11-4 CR (2004) Prentice Hall, Inc. The Materials Handling System Materials Handling Functions · Loading and unloading · Movement to and from storage · Order filling Materials - Handling Considerations · Load unitization · Space layout · Storage equipment · Movement equipment 11-5 An Automated Warehouse CR (2004) Prentice Hall, Inc. 11-6 CR (2004) Prentice Hall, Inc. Economics of Storage/Handling Alternatives Private warehousing, automated handling Public warehousing . | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 28 1 Consolidation warehouse A A B C D B C D Manufacturer A Manufacturer B Manufacturer C Manufacturer D 10,000 lb. 8,000 lb. 15,000 lb. 7,000 lb. 40,000 lb. Customer Consolidation Warehouse Similar to a merge-in-transit facility 11-6 CR (2004) Prentice Hall, Inc. Distribution warehouse Manufacturer Customer B Customer C Customer A Low rate TL shipment LTL LTL LTL Distribution, Break Bulk, or Pool Point Warehouse Warehouse may or may not hold inventories 11-7 11-4 CR (2004) Prentice Hall, Inc. The Materials Handling System Materials Handling Functions · Loading and unloading · Movement to and from storage · Order filling Materials - Handling Considerations · Load unitization · Space layout · Storage equipment · Movement equipment 11-5 An Automated Warehouse CR (2004) Prentice Hall, Inc. 11-6 CR (2004) Prentice Hall, Inc. Economics of Storage/Handling Alternatives Private warehousing, automated handling Public warehousing Private warehousing, pallet-forklift truck handling Leased warehousing a b c d Cost to company, $ Annual system throughput, cwt. 0 a Economical range for public warehousing. b Economical range for leased warehousing, manual handling. c Economical range for private warehousing, pallet-forklift truck handling. d Economical range for private warehousing, automated handling. 11-7 CR (2004) Prentice Hall, Inc. Virtual Warehousing Don’t hold all inventories needed for sale in company’s warehouse Ship selected items directly from suppliers Reduces investment in inventories Requires a first-rate order management system May require sharing critical information with vendors 15-8 Logistics/Supply Chain Organization CR (2004) Prentice Hall, Inc. A good organization structure does not by itself produce good performance--just as a good constitution does not guarantee great presidents, or good laws, or a moral society. But a poor organization structure makes good performance impossible, no matter how