24-08-2013, 02:48 PM
Functions and total cost concepts of logistics management
Logistics management
It is basically an integrative process which optimize the flow of material and supplies through an organization and its customer.
Function of logistics management
Order processing
Inventory management
Warehousing
Transportation
Material handling
Storage system
Logistical packaging
Information
Order processing
Order checking for any deviations in agreed-upon or negotiated
Price, payment, and delivery term
Checking the availability of material in stocks
Production and material scheduling for shortage
Acknowledging the indicating deviation.
Total cost concept
Warehousing cost
Transportation cost
Inventory cost
Information cost
Packaging cost
Insurance cost
Procurement cost
Order processing
Order processing cost
Order checking for any deviations in agreed-upon or negotiated
Price, payment, and delivery term
Checking the availability of material in stocks
Production and material scheduling for shortage