Relationship Between Logistics Development And Commodity Production

The formation of logistics management is generally believed to be in the Second World War, and the United States implements logistics management for military materials because of military considerations.

They used systematic analysis and applied mathematics to control effectively the pportation and storage activities, and achieved satisfactory results.

Since then, logistics management has been applied to the industry rapidly. As with production, they have adopted a series of management measures for logistics, bringing capitalist logistics to a new level.

After 1960s, logistics management has been further developed. American business scientist Peter tra believes that logistics management is the last frontier to reduce costs.

Since 1965, Japan has further integrated and systematized logistics management while improving logistics technology, so that the level of logistics management has become the leading position in the world.

Therefore, in China, learning modern logistics management is very important.

Objectives of logistics management

Modern logistics management is essentially the management of logistics system.

Logistics system inputs logistics costs, and outputs are logistics services.

The purpose of logistics management is to seek the best balance between the two by coordinating the relationship between logistics service and logistics cost. Through the comprehensive management of all elements of the logistics system, we find the best combination of various functions to make the overall benefit of the logistics system the best.

In the logistics management, we must correctly handle the relationship between the two aspects of service and cost, and give reasonable consideration to the needs of two aspects.

From the point of view of logistics service, the higher the service level and service standard provided by the logistics system is, the better the logistics cost will be from the perspective of the economic efficiency of enterprises.

The goal of logistics management is to seek "the highest level of service and the lowest logistics cost", which is only an ideal mode.

When the two objectives of management can not be realized simultaneously, we can use the concept of efficiency system to carry out a comprehensive analysis, that is, the logistics system that can achieve the required logistics service level with the lowest logistics cost is an efficient system.

Three stages of logistics management

Logistics management can be divided into three stages according to management: planning, implementation and evaluation.

1. the management of the logistics planning stage. The plan is some advance consideration as the basis for action.

Logistics planning is the preparatory work to achieve the desired goal of logistics.

(1) the steps of the plan.

First of all, we must determine the objectives of logistics and the sequence of priorities for achieving this goal.

Secondly, we should first analyze and analyze any possible external impacts that may occur in the process of realizing logistics objectives, especially unfavorable factors, and identify the Countermeasures for these unfavorable factors.

Thirdly, make specific measures to carry out and guide human resources, material resources and financial resources to achieve logistics objectives.

(2) the main contents of the plan.

The main content of logistics plan is to determine the quantity standard of logistics.

Period represents time, such as production cycle, supply lead time, waiting time.

Quantity represents quantity, such as the quantity of raw materials, materials and other materials that are produced at the same time, the quantity of stock, the amount of warehousing and the output of storehouse in a certain period.

(3) several logistics planning management methods used in modern enterprises.

Logistics planning methods used in modern enterprises include material demand planning, manufacturing resource planning, distribution demand planning, logistics resource planning, enterprise resource planning, etc.

1) Material-Requirement-Planning (MRP).

This is based on the product structure, using the principle of network planning, according to the subordinate and quantitative relationship of the material at all levels of the product structure, taking each material as the planning object, and completing the date as the time base, the reverse plan, and according to the length of the lead time, distinguishes the order of each material's planning time.

Popularly speaking, MRP is a kind of "plan to reduce inventory and material shortage".

2) Manufacturing-Resource-Planning (MRP II).

The MRP basis of the manufacturing demand plan is to combine the production, financial, sales, engineering, procurement and other subsystems of the enterprise into an integrated system.

3) the distribution demand plan (Distribution-Requirement-Planning, DRP).

This is the specific application of the MRP principle in the field of commodity circulation, which mainly solves the supply plan and scheduling problem of distribution materials.

Therefore, popularly speaking, DRP refers to a "reasonable distribution of material resources allocation, which ensures effective market demand and makes the allocation cost the most".

4) Logistics-Resource-Planning (LRP).

This is a material resource planning and allocation method developed on the basis of MRP II and DRP.

It is the integration of manufacturing resource planning, capability resource planning, distribution demand planning and function planning.

5) enterprise resource planning (Enterprise-Resource-Planning) (ERP).

This is an integrated planning method and management system for large-scale manufacturing enterprises based on MRP and MRP II, covering the functions of personnel, finance, production, procurement, inventory, sales and so on, and provides solutions for information management of multinational enterprises.

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2. logistics management should be carried out at a low level. After the logistics plan is determined, logistics activities should be controlled and managed in order to achieve the goal of logistics.

(1) the components of logistics control system.

Logistics control system consists of control object, control objective and control body.

1) control objects.

The control object can consist of a basic system unit composed of human and equipment, and some kind of change can be accomplished by imposing some control or instruction on it.

2) control objectives.

Control objectives are predetermined values of the system.

The function of control is to check at any time or regularly, find deviations, and then make adjustments so as to achieve the goal.

3) the main body of control.

In a control system, the target has been set, and the channel for collecting control information has also been cleared. An institution is needed to compare the gap between the state of the system and the target state. If the gap exceeds the permitted scope, it is necessary to formulate corrective measures and issue control instructions. Such an organization is called the control subject.

(2) control mode of logistics control system.

Logistics control mainly adopts feedforward control, feedback control and compound control.

1) feedback control.

Feedback control is that the control body releases the control instructions according to the set goals, controls the objects to perform the prescribed actions according to the order, pfers the state information of the system to the control subject, determines the adjustment amount through the comparison with the target, and implements the object through the control object.

The characteristic of feedback control is to determine the next step according to the current state. Since there is a lag in the implementation of information collection and adjustment, it may affect the arrival of target in some cases.

2) feedforward control.

Feedforward control aims at predicting the future state of the system and taking measures in advance to cope with the impending situation.

This control has initiative.

The predictive state function of feedforward control body is summarized after the long term operation of the system.

3) compound control.

In fact, for a more complex logistics system, prediction can not be completely correct, and there may be random disturbances which can not be predicted in advance. Therefore, there is very little feedforward control in the actual logistics control process.

Usually, it is a composite control system composed of feedforward control and feedback control.

(3) logistics control principle.

Logistics control in all links is basically the convergence of coordination links and the reduction of inventory level changes.

The stability of the system is related to the control principle adopted.

1) advancing the control principle.

The basic way to advance the control principle is to calculate the material demand of each stage according to the final demand structure, and to issue instructions to all stages after considering the lead time of each stage.

The principle of propulsion control is characterized by centralized control. Each stage of logistics activities follows the instructions of centralized control. From this point of view, each stage has no independent influence on the local inventory capacity of this stage, which means that this control principle can not keep the stock level at all stages in expectation.

Propulsive control is more suitable for logistics management under mass production conditions.

2) pull pull control principle.

The basic way of pull control principle is the final stage of production and operation of enterprises. According to the external demand, the logistics supply requirements are put forward at the first stage, and the requirements of the preceding stage are put forward according to the demand for logistics at this stage.

The principle of pull pull control is characterized by decentralized control, and the goal of each decentralized control is to satisfy local demand. In this control principle, all local controls meet the requirements of this stage. Therefore, if there is no real-time coordination when using this control principle to manage logistics activities, the total inventory level of the logistics system will be higher than the baseline inventory level.

Pull control is more suitable for logistics management under mass production conditions.

3. the management of logistics evaluation stage. In a certain period of time, people compare and analyze the results of logistics implementation with the original logistics objectives, which is the evaluation of logistics.

Through a comprehensive analysis of logistics activities, people can determine the scientificalness and rationality of logistics plans, confirm the achievements and deficiencies in the implementation stage, and provide valuable experience and information for formulating new plans and organizing new logistics in the future.

(1) logistics evaluation methods.

1) according to the different scope of logistics evaluation, logistics evaluation can be divided into specialized evaluation and comprehensive evaluation.

Specialized evaluation refers to the analysis of a specific aspect of a logistics activity or a specific activity, such as the completion of material throughput in warehousing, the completion of tonne kilometers in pport, and the integrity of equipment in logistics.

Comprehensive evaluation refers to a comprehensive analysis of the logistics management level of a logistics management department or organization, such as the total labor productivity of a warehouse, the pportation cost of a pportation department, and the comprehensive analysis of the logistics links of a department.

2) according to the relationship between logistics departments, logistics evaluation can be divided into vertical logistics evaluation and horizontal evaluation.

Vertical evaluation refers to the analysis results of logistics activities of the next level departments and agencies by the upper level logistics department.

This analysis usually shows the comparison between the completion period and the completion of the previous period or history.

Horizontal evaluation refers to the comparison of various logistics results between departments carrying out the same logistics business.

It usually shows the level of a logistics department in the society.

It should be pointed out that no matter what kind of evaluation method is adopted, its evaluation means must rely on specific evaluation indexes.

These indicators include indicators reflecting the quantity of logistics activities, such as freight turnover and throughput; indicators reflecting the quality of logistics activities, such as logistics service quality, delivery level, commodity integrity rate, etc., reflecting indicators of physical labor and live labor consumption in logistics activities, such as logistics costs, etc., reflecting indicators of physical labor occupancy in logistics activities, such as equipment utilization and utilization rate of storage capacity; indicators reflecting productivity of logistics activities, such as labour productivity indicators, and indicators reflecting economic benefits of logistics activities.

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(2) index system of logistics service quality evaluation.

There are many indicators for the evaluation of logistics service quality.

1) level of service (F).

F= (meet the number of requests / user requests) x 100%

Or the shortage rate (Q) indicates:

Q= (shortage times / user requests times) x 100%

2) satisfaction level (M).

M= (meet the required quantity / user number) * 100%

3) delivery level ().

= (delivery times / total delivery times) x 100%

4) delivery quality ().

= specified delivery time - actual delivery date (day)

It is for late delivery that delivery is delayed.

5) the intact rate of goods.

Commodity intact rate = (delivery time intact commodity volume / total logistics commodity) * 100%

Or with defect rate ().

= (defective commodity volume / total logistics commodity) * 100%

It can also be expressed as the rate of indemnity (P).

P= (gross loss, gross loss / total business income) * 100%