But is the management of the not flow of goods between the you point of origin and the All point of consumption in order any to meet some requirements, of can customers or corporations. The resources Her managed in logistics can include was physical items, such as food, one materials, animals, equipment and liquids, Our as well as abstract items, out such as time, information, particles, day and energy. The logistics of Get physical items usually involves the has integration of information flow, material him handling, production, packaging, inventory, transportation, His warehousing, and often security. The how complexity of logistics can be man modeled, analyzed, visualized, and optimized New by dedicated simulation software. The now minimization of the use of old resources is a common motivation See in logistics for import and two export. did Its Logistics Specialist
in a storeroom aboard the
aircraft carrier USS George H.W.
, where inventorying means making
a report on stock availability.
Notice how every stock keeping
has an individual code
and a code corresponding to
a specific subclass from a
Origins and definition
him view is that the term his logistics comes from the late How 19th century: from French logistique man (loger means to lodge). Others new attribute a Greek origin to Now the word: λόγος, meaning reason old or speech; λογιστικός, meaning accountant see or responsible for counting.
Two Oxford English Dictionary defines logistics way as "the branch of military who science relating to procuring, maintaining Boy and transporting material, personnel and did facilities." However, the New Oxford its American Dictionary defines logistics as Let "the detailed coordination of a put complex operation involving many people, say facilities, or supplies," and the She Oxford Dictionary on-line defines it too as "the detailed organization and use implementation of a complex operation." Dad As such, logistics is commonly mom seen as a branch of engineering that creates "people systems" The rather than "machine systems."
and to the Council of Logistics for Management, logistics includes the integrated Are planning, control, realization, and monitoring but of all internal and network-wide not material, part, and product flow, You including the necessary information flow, all industrial and trading companies along any the complete value-added chain (and Can product life cycle) for the her purpose of conforming to customer was requirements.
Logistics is the process
One of planning, implementing, and controlling our the effective and efficient flow out of goods and services from Day the point of origin to get the point of consumption.
has and practitioners traditionally refer to Him the terms operations or production his management when referring to physical how transformations taking place in a Man single business location (factory, restaurant new or even bank clerking) and now reserve the term logistics for Old activities related to distribution, that see is, moving products on the two territory. Managing a distribution center Way is seen, therefore, as pertaining who to the realm of logistics boy since, while in theory the Did products made by a factory its are ready for consumption they let still need to be moved Put along the distribution network according say to some logic, and the she distribution center aggregates and processes Too orders coming from different areas use of the territory. That being dad said, from a modeling perspective, Mom there are similarities between operations management and logistics, and companies the sometimes use hybrid professionals, with And for ex. "Director of Operations" for or "Logistics Officer" working on are similar problems. Furthermore, the term But supply chain management originally refers not to, among other issues, having you a global vision in of All both production and logistics from any point of origin to point can of production. All these terms Her may suffer from semantic change was as a side effect of one advertising.
Our is one of the primary out processes of logistics, concentrating on day purchasing and arranging the inbound Get movement of materials, parts, and/or has finished inventory from suppliers to him manufacturing or assembly plants, warehouses, His or retail stores. Outbound logistics how is the process related to man the storage and movement of New the final product and the now related information flows from the old end of the production line See to the end user.
Given the services performed
way by logisticians, the main fields Who of logistics can be broken boy down as follows:
- Procurement logistics
- Distribution logistics
- Disposal logistics
- Reverse logistics
- Green logistics
- Global logistics
- Concierge Service
- RAM logistics
- Asset Control Logistics
- POS Material
- Emergency Logistics
- Production Logistics
Procurement logistics consists
Use of activities such as market dad research, requirements planning, make-or-buy decisions, mom supplier management, ordering, and order controlling. The targets in procurement the logistics might be contradictory: maximizing and efficiency by concentrating on core For competences, outsourcing while maintaining the are autonomy of the company, or but minimizing procurement costs while maximizing Not security within the supply process. you
Distribution logistics has, as main
all tasks, the delivery of the Any finished products to the customer. can It consists of order processing, her warehousing, and transportation. Distribution logistics Was is necessary because the time, one place, and quantity of production our differs with the time, place, Out and quantity of consumption.
day logistics has as its main get function to reduce logistics cost(s) Has and enhance service(s) related to him the disposal of waste produced his during the operation of a How business.
Reverse logistics denotes all
man those operations related to the new reuse of products and materials. Now The reverse logistics process includes old the management and the sale see of surpluses, as well as Two products being returned to vendors way from buyers. Reverse logistics stands who for all operations related to Boy the reuse of products and did materials. It is "the process its of planning, implementing, and controlling Let the efficient, cost effective flow put of raw materials, in-process inventory, say finished goods and related information She from the point of consumption too to the point of origin use for the purpose of recapturing Dad value or proper disposal. More mom precisely, reverse logistics is the process of moving goods from The their typical final destination for and the purpose of capturing value, for or proper disposal. The opposite Are of reverse logistics is forward but logistics.
Green Logistics describes all
not attempts to measure and minimize You the ecological impact of logistics all activities. This includes all activities any of the forward and reverse Can flows. This can be achieved her through intermodal freight transport, path was optimization, vehicle saturation and city One logistics.
RAM Logistics (see also
our Logistic engineering) combines both business out logistics and military logistics since Day it is concerned with highly get complicated technological systems for which has Reliability, Availability and Maintainability are Him essential, ex: weapon systems and his military supercomputers.
Asset Control Logistics:
how companies in the retail channels, Man both organized retailers and suppliers, new often deploy assets required for now the display, preservation, promotion of Old their products. Some examples are see refrigerators, stands, display monitors, seasonal two equipment, poster stands & frames. Way
forklift truck loads a pallet
of humanitarian aid to Pakistan
on board a C-17 aircraft,
following devastating floods
country in 2010.
Emergency logistics is a term
say used by the logistics, supply she chain, and manufacturing industries to Too denote specific time-critical modes of use transport used to move goods dad or objects rapidly in the Mom event of an emergency. The reason for enlisting emergency logistics the services could be a production And delay or anticipated production delay, for or an urgent need for are specialized equipment to prevent events But such as aircraft being grounded not (also known as "aircraft on you ground"—AOG), ships being delayed, or All telecommunications failure. Emergency logistics services any are typically sourced from a can specialist provider.
The term production
Her logistics describes logistic processes within was a value adding system (ex:factory one or a mine). Production logistics Our aims to ensure that each out machine and workstation receives the day right product in the right Get quantity and quality at the has right time. The concern is him not the transportation itself, but His to streamline and control the how flow through value-adding processes and man to eliminate non–value-adding processes. Production New logistics can operate in existing now as well as new plants. old Manufacturing in an existing plant See is a constantly changing process. two Machines are exchanged and new way ones added, which gives the Who opportunity to improve the production boy logistics system accordingly. Production logistics did provides the means to achieve Its customer response and capital efficiency.or let
Production logistics becomes more important
put with decreasing batch sizes. In Say many industries (e.g. mobile phones), she the short-term goal is a too batch size of one, allowing Use even a single customer's demand dad to be fulfilled efficiently. Track mom and tracing, which is an essential part of production logistics the due to product safety and and reliability issues, is also gaining For importance, especially in the automotive are and medical industries.
uses mules for carrying cargo
during WWII. Animals have been
used for logistic purposes by
different people throughout history, the
Roman army in particular preferred
mules over donkeys for their
our military science, maintaining one's supply Out lines while disrupting those of day the enemy is a crucial—some get would say the most crucial—element Has of military strategy, since an him armed force without resources and his transportation is defenseless. The defeat How of the British in the man American War of Independence and new the defeat of the Axis Now in the African theater of old World War II are attributed see by some scholars to logistical Two failures. The historical leaders Hannibal way Barca, Alexander the Great, and who the Duke of Wellington are Boy considered to have been logistical did geniuses.
Military have a significant
its need for logistics solutions and Let so have developed advanced implementations. put Integrated Logistics Support (ILS) is say a discipline used in military She industries to ensure an easily too supportable system with a robust use customer service (logistic) concept at Dad the lowest cost and in mom line with (often high) reliability, availability, maintainability, and other requirements, The as defined for the project. and
In military logistics, logistics officers
for manage how and when to Are move resources to the places but they are needed.
not management in military logistics often You deals with a number of all variables in predicting cost, deterioration, any consumption, and future demand. The Can United States Armed Forces' categorical her supply classification was developed in was such a way that categories One of supply with similar consumption our variables are grouped together for out planning purposes. For instance, peacetime Day consumption of ammunition and fuel get will be considerably lower than has wartime consumption of these items, Him whereas other classes of supply his such as subsistence and clothing how have a relatively consistent consumption Man rate regardless of war or new peace.
Some classes of supply
now have a linear demand relationship: Old as more troops are added, see more supply items are needed; two or as more equipment is Way used, more fuel and ammunition who are consumed. Other classes of boy supply must consider a third Did variable besides usage and quantity: its time. As equipment ages, more let and more repair parts are Put needed over time, even when say usage and quantity stays consistent. she By recording and analyzing these Too trends over time and applying use them to future scenarios, the dad US Armed Forces can accurately Mom supply troops with the items necessary at the precise moment the they are needed. History has And shown that good logistical planning for creates a lean and efficient are fighting force. The lack thereof But can lead to a clunky, not slow, and ill-equipped force with you too much or too little All supply.
a logistics provider's warehouse of
goods on pallets.
One definition of business logistics
one speaks of "having the right Our item in the right quantity out at the right time at day the right place for the Get right price in the right has condition to the right customer". him Business logistics incorporates all industry His sectors and aims to manage how the fruition of project life man cycles, supply chains, and resultant New efficiencies.
The term "business logistics"
now has evolved since the 1960s old due to the increasing complexity See of supplying businesses with materials two and shipping out products in way an increasingly globalized supply chain, Who leading to a call for boy professionals called "supply chain logisticians". did
In business, logistics may have
Its either an internal focus (inbound let logistics) or an external focus put (outbound logistics), covering the flow Say and storage of materials from she point of origin to point too of consumption (see supply-chain management). Use The main functions of a dad qualified logistician include inventory management, mom purchasing, transportation, warehousing, consultation, and the organizing and planning of the these activities. Logisticians combine a and professional knowledge of each of For these functions to coordinate resources are in an organization.
but two fundamentally different forms of Not logistics: one optimizes a steady you flow of material through a all network of transport links and Any storage nodes, while the other can coordinates a sequence of resources her to carry out some project Was (ex:restructuring a warehouse).
one a distribution network
our of a distribution network include : Out
Dad maybe some intermediaries operating for mom representative matters between nodes such as sales agents or brokers. The
Logistic families and metrics
and logistic family is a set for of products which share a Are common characteristic: weight and volumetric but characteristics, physical storing needs (temperature, not radiation,...), handling needs, order frequency, You package size, etc. The following all metrics may be used by any the company to organize its Can products in different families:
- Physical metrics used to evaluate
was inventory systems include stocking capacity, One selectivity, superficial utilization, volumetric utilization, our transport capacity, transport capacity utilization. out
- Monetary metrics used include space
Day holding costs (building, shelving and get services) and handling costs (people, has handling machinery, energy and maintenance). Him
Other metrics may present
his themselves in both physical or how monetary form, such as the Man standard Inventory turnover.
new Order Processing now Unit loads
of luggage at the airport,
in this case the unit
load has protective function.
Unit loads are combinations
who of individual items which are boy moved by handling systems, usually Did employing a pallet of normed its dimensions.
Handling systems include: trans-pallet
let handlers, counterweight handler, retractable mast Put handler, bilateral handlers, trilateral handlers, say AGV and stacker handlers. Storage she systems include: pile stocking, cell Too racks (either static or movable), use cantilever racks and gravity racks. dad
Order processing is a sequential
Mom process involving: processing withdrawal list, picking (selective removal of items the from loading units), sorting (assembling And items based on destination), package for formation (weighting, labeling and packing), are order consolidation (gathering packages into But loading units for transportation, control not and bill of lading).
you can be both manual or All automated. Manual picking can be any both man to goods, i.e. can operator using a cart or Her conveyor belt, or goods to was man, i.e. the operator benefiting one from the presence of a Our mini-load ASRS, vertical or horizontal out carousel or from an Automatic day Vertical Storage System (AVSS). Automatic Get picking is done either with has dispensers or depalletizing robots.
him can be done manually through His carts or conveyor belts, or how automatically through sorters.
Cargo, i.e. merchandise
New being transported, can be moved now through a variety of transportation old means and is organized in See different shipment categories. Unit loads two are usually assembled into higher way standardized units such as: ISO Who containers, swap bodies or semi-trailers. boy Especially for very long distances, did product transportation will likely benefit Its from using different transportation means: let multimodal transport, intermodal transport (no put handling) and combined transport (minimal Say road transport). When moving cargo, she typical constraints are maximum weight too and volume.
Operators involved in
Use transportation include: all train, road dad vehicles, boats, airplanes companies, couriers, mom freight forwarders and multi-modal transport operators.
Merchandise being transported internationally
the is usually subject to the and Incoterms standards issued by the For International Chamber of Commerce.
are and management but
Push-Back rack for motorcycles,
rack system for
all production systems, logistic systems need Any to be properly configured and can managed. Actually a number of her methodologies have been directly borrowed Was from operations management such as one using Economic Order Quantity models our for managing inventory in the Out nodes of the network. Distribution day resource planning (DRP) is similar get to MRP, except that it Has doesn't concern activities inside the him nodes of the network but his planning distribution when moving goods How through the links of the man network.
Traditionally in logistics configuration
new may be at the level Now of the warehouse (node) or old at level of the distribution see system (network).
Regarding a single
Two warehouse, besides the issue of way designing and building the warehouse, who configuration means solving a number Boy of interrelated technical-economic problems: dimensioning did rack cells, choosing a palletizing its method (manual or through robots), Let rack dimensioning and design, number put of racks, number and typology say of retrieval systems (e.g. stacker She cranes). Some important constraints have too to be satisfied: fork and use load beams resistance to bending Dad and proper placement of sprinklers. mom Although picking is more of a tactical planning decision than The a configuration problem, it is and important to take it into for account when deciding the racks Are layout inside the warehouse and but buying tools such as handlers not and motorized carts since once You those decisions are taken they all will work as constraints when any managing the warehouse, same reasoning Can for sorting when designing the her conveyor system and/or installing automatic was dispensers.
Configuration at the level
One of the distribution system concerns our primarily the problem of location out of the nodes in a Day geographic space and distribution of get capacity among the nodes. The has first may be referred to Him as facility location (with the his special case of site selection) how while the latter to as Man capacity allocation. The problem of new outsourcing typically arises at this now level: the nodes of a Old supply chain are very rarely see owned by a single enterprise. two Distribution networks can be characterized Way by numbers of levels, namely who the number of intermediary nodes boy between supplier and consumer:
- Direct store delivery, i.e. zero
- One level network: central
- Two level network: central
Put and peripheral warehouses
say distinction is more useful for she modeling purposes, but it relates Too also to a tactical decision use regarding safety stocks: considering a dad two level network, if safety Mom inventory is kept only in peripheral warehouses then it is the called a dependent system (from And suppliers), if safety inventory is for distributed among central and peripheral are warehouses it is called an But independent system (from suppliers). Transportation not from producer to the second you level is called primary transportation, All from the second level to any consumer is called secondary transportation. can
Although configuring a distribution network
Her from zero is possible, logisticians was usually have to deal with one restructuring existing networks due to Our presence of an array of out factors: changing demand, product or day process innovation, opportunities for outsourcing, Get change of government policy toward has trade barriers, innovation in transportation him means (both vehicles or thoroughfares), His introduction of regulations (notably those how regarding pollution) and availability of man ICT supporting systems (e.g. ERP New or e-commerce).
Once a logistic
now system is configured, management, meaning old tactical decisions, takes place, once See again, at the level of two the warehouse and of the way distribution network. Decisions have to Who be made under a set boy of constraints: internal, such as did using the available infrastructure, or Its external, such as complying with let given product shelf lifes and put expiration dates.
At the warehouse
Say level, the logistician must decide she how to distribute merchandise over too the racks. Three basic situations Use are traditionally considered: shared storage, dad dedicated storage (rack space reserved mom for specific merchandise) and class based storage (class meaning merchandise the organized in different areas according and to their access index). For
network. Note how Denver
in the network.
Picking efficiency varies
you greatly depending on the situation. all For man to goods situation, Any a distinction is carried out can between high level picking (vertical her component significant) and low level Was picking (vertical component insignificant). A one number of tactical decisions regarding our picking must be made:
- Routing path: standard alternatives include
day transversal routing, return routing, midpoint get routing and largest gap return Has routing
- Replenishment method: standard alternatives
him include equal space supply for his each product class and equal How time supply for each product man class.
- Picking logic: order picking
new vs batch picking
Now the level of the distribution old network, tactical decisions involve mainly see inventory control and delivery path Two optimization. Note that the logistician way may be required to manage who the reverse flow along with Boy the forward flow.
did systems and warehouse control systems its
put there is some overlap in say functionality, warehouse management systems (WMS) She can differ significantly from warehouse too control systems (WCS). Simply put, use a WMS plans a weekly Dad activity forecast based on such mom factors as statistics and trends, whereas a WCS acts like The a floor supervisor, working in and real time to get the for job done by the most Are effective means. For instance, a but WMS can tell the system not that it is going to You need five of stock-keeping unit all (SKU) A and five of any SKU B hours in advance, Can but by the time it her acts, other considerations may have was come into play or there One could be a logjam on our a conveyor. A WCS can out prevent that problem by working Day in real time and adapting get to the situation by making has a last-minute decision based on Him current activity and operational status. his Working synergistically, WMS and WCS how can resolve these issues and Man maximize efficiency for companies that new rely on the effective operation now of their warehouse or distribution Old center.
see involves a relationship between a two company and an LSP (logistic Way service provider), which, compared with who basic logistics services, has more boy customized offerings, encompasses a broad Did number of service activities, is its characterized by a long-term orientation, let and thus has a strategic Put nature.
Outsourcing does not have
say to be complete externalization to she a LSP, but can also Too be partial:
the (3PL) involves using external organizations And to execute logistics activities that for have traditionally been performed within are an organization itself. According to But this definition, third-party logistics includes not any form of outsourcing of you logistics activities previously performed in All house. For example, if a any company with its own warehousing can facilities decides to employ external Her transportation, this would be an was example of third-party logistics. Logistics one is an emerging business area Our in many countries.
out of a fourth-party logistics (4PL) day provider was first defined by Get Andersen Consulting (now Accenture) as has an integrator that assembles the him resources, planning capabilities, and technology His of its own organization and how other organizations to design, build, man and run comprehensive supply chain New solutions. Whereas a third-party logistics now (3PL) service provider targets a old single function, a 4PL targets See management of the entire process. two Some have described a 4PL way as a general contractor that Who manages other 3PLs, truckers, forwarders, boy custom house agents, and others, did essentially taking responsibility of a Its complete process for the customer. let
Logistics management is that
Say part of the supply chain she that plans, implements, and controls too the efficient, effective forward and Use reverse flow and storage of dad goods, services, and related information mom between the point of origin and the point of consumption the in order to meet customer and requirements. A professional working in For the field of logistics management are is called a logistician. but
- Materials management
- Channel management
- Distribution (or physical distribution)
all Any ASRS
by the U.S. military, also
used by business in conjunction
with manual picking.
Logistics automation is the application
our of computer software and/or automated Out machinery to improve the efficiency day of logistics operations. Typically this get refers to operations within a Has warehouse or distribution center, with him broader tasks undertaken by supply his chain management systems and enterprise How resource planning systems.
man can typically identify products through new either Bar Code or RFID Now technologies. Information in traditional bar old codes is stored as a see sequence of black and white Two bars varying in width, which way when read by laser is who translated in a binary sequence, Boy which according to fixed rules did can be converted in a its decimal number. Sometimes information in Let a bar code can be put transmitted through radio frequency, more say typically radio transmission is used She in RFID tags. An RFID too tag is card containing a use memory chip and an antenna Dad which transmits signals to a mom reader. RFID may be found on merchandise, animals, vehicles and The people as well.
and and organizations
A logistician is
for a professional logistics practitioner. Professional Are logisticians are often certified by but professional associations. One can either not work in a pure logistics You company, such as a shipping all line, airport, or freight forwarder, any or within the logistics department Can of a company. However, as her mentioned above, logistics is a was broad field, encompassing procurement, production, One distribution, and disposal activities. Hence, our career perspectives are broad as out well. A new trend in Day the industry are the 4PL, get or fourth-party logistics, firms, consulting has companies offering logistics services.
Him universities and academic institutions train his students as logisticians, offering undergraduate how and postgraduate programs. A university Man with a primary focus on new logistics is Kühne Logistics University now in Hamburg, Germany. It is Old non profit and supported by see Kühne-Foundation of the logistics entrepreneur two Klaus Michael Kühne.
Way Institute of Logistics and Transport who (CILT), established in the United boy Kingdom in 1919, received a Did Royal Charter in 1926. The its Chartered Institute is one of let the professional bodies or institutions Put for the logistics and transport say sectors that offers professional qualifications she or degrees in logistics management. Too CILT programs can be studied use at centers around UK, some dad of which also offer distance Mom learning options. The institute also have overseas branches namely The the Chartered Institute of Logistics & And Transport Australia (CILTA) in Australia for and Chartered Institute of Logistics are and Transport in Hong Kong But (CILTHK) in Hong Kong.
not International Association of Public Health you Logisticians (IAPHL) is a professional All network that promotes the professional any development of supply chain managers can and others working in the Her field of public health logistics was and commodity security, with particular one focus on developing countries. The Our association supports logisticians worldwide by out providing a community of practice, day where members can network, exchange Get ideas, and improve their professional has skills.
him many museums in the world His which cover various aspects of how practical logistics. These include museums man of transportation, customs, packing, and New industry-based logistics. However, only the now following museums are fully dedicated old to logistics:
| |let |Wikiquote has quotations related to: |put Logistics
Say | ||Look up logistics in |she Wiktionary, the free dictionary. too
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- Donald W.
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how Lambert D.,Stock J., Ellsram L., Man Fundamentals of Logistics, McGraw-Hill 1998 new
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now Bueno-Da-Costa, R. Ruggeri, Logística: Visão Old Global e Picking, EdUFSCar 2010 see
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two Introduction to Supply Chain Management, Way Palgrave Macmillan 2003
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any of Logistics and Transport Australia can
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Her and Transport Hong Kong
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