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Introduction 1

Unit 1 Introduction to the Logistics 1

Definitions 2

Elements of Logistics 4

Unit 2 Introduction to Supply Chain Management 15

Supply Chain Management 15

Reasons for Developing Supply Chains 17

Benefits of Supply Chain Cooperation 18

The Goal of Supply Chain Management 18

Relationships with Other Corporate Functions 25

Unit 3 Logistics Management and Organization 25

Logistics Organizational Structures 27

Unit 4 Logistics and Competitive Advantage 40

Time and Quality Based Competition 40

Efficiency and Effectiveness 42

The Marketing/Logistics Strategic Linkage 42

Logistics Leverage 44

Unit 5 Planning for Logistics 52

Approach 52

Tools and Techniques 54

The Role of Depots and Warehouses 64

Unit 6 The Cost of Logistics 64

Costs Relationships 66

Unit 7 Equipment Storage 76

Palletized Storage 76

Small Item Storage Systems 81

Other Types of Storage 82

Unit 8 Transportation Management 94

Importance of an Effective Transportation System 94

Means of Transportation 95

Transportation Decision 97

Inventory Functionality 110

Unit 9 Inventory Management 110

Inventory Related Definitions 111

Inventory Carrying Cost 112

Unit 10 Information System Functionality and IntegrationInformation System Functionality 123

Information System Integration 128

Unit 11 Packing 157

Unit 12 International Logistics Strategy 157

Decision-making Process 157

Problem Areas and Possible Solutions 160

Unit 13 International Purchasing 172

Introduction ( 172

Advantages and Rationale of Buying Overseas 174