1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 16

6-2 Transport Fundamentals in Planning Triangle PLANNING ORGANIZING CONTROLLING Transport Strategy Transport fundamentals Transport decisions Customer service goals The product Logistics service Ord. proc. & info. sys. Inventory Strategy Forecasting Inventory decisions Purchasing and supply scheduling decisions Storage fundamentals Storage decisions Location Strategy Location decisions The network planning process PLANNING ORGANIZING CONTROLLING Transport Strategy Transport fundamentals Transport decisions Customer service goals The product Logistics service Ord. proc. & info. sys. Inventory Strategy Forecasting Inventory decisions Purchasing and supply scheduling decisions Storage fundamentals Storage decisions Location Strategy Location decisions The network planning process CR (2004) Prentice Hall, Inc.

Importance of Effective Transportation System Comparison of developing Vs developed countries Increased Competition and access – Perishable Items Economies of Scale – Auto Parts Reduced Prices – Oil and Middle East 13-3 CR (2004) Prentice Hall, Inc.

6-4 Transport System Defined CR (2004) Prentice Hall, Inc.   Performance - Average transit time - Transit time variability - Loss and damage - Other factors including availability, capability, frequency of movement, and various less tangible services   Cost - Line haul - Terminal/local - Accessorial orspecial charges

6-5 Transport Choices CR (2004) Prentice Hall, Inc.   Primary intercity carriers  Air  Truck  Rail  Water  Pipe   Coordinated services  Piggyback  Birdyback  Fishyback   Small shipment carriers  UPS  Federal Express  Postal services  Bus Package Express   Agents  Freight forwarders  Shipper associations   Others  Autos  Bicycles  Taxis  Human  Electronic