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In this chapter you will learn: Understand why physical distribution (logistics) is such an important part of place and strategic market planning, understand why the physical distribution customer service level is a marketing strategy variable. understand the physical distribution concept and why it requires coordination of storing,...
Chapter 12: Logistics and Distribution For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited Understanding Physical Distribution Total Cost of PD Costs ($) Inventory Cost Lost Sales Transporting Cost 0 90% Customer Service Level Exhibit 121 122 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited Coordinating Logistics Activities ???? ???? ???? ???? ???? 123 Sharing and Shifting Reducing Conflict JIT Chain of Supply Better Information-EDI and Internet For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited The Transporting Function Rail Truck Modes of Transportation Air Pipeline 124 Water For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited The Storing Function Price Stability Flexibility Costs Specialized Function 125 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited Comparing Private and Public Warehouses Type of warehouse Characteristics Public Private Fixed Investment Very high No fixed investment High if volume is low Very low if volume is very high Low High Low managerial control Adequacy Highly adequate May not be convenient Flexibility Low High Unit Cost Control Exhibit 126 126 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited ... Specialized Function 125 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited Comparing Private and Public Warehouses Type of warehouse Characteristics... Information-EDI and Internet For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited The Transporting Function Rail Truck Modes of Transportation... Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited Coordinating Logistics Activities ???? ???? ???? ???? ???? 123 Sharing and Shifting Reducing Conflict JIT Chain of Supply