Chapter 6 Logistics Engineering,Unit 1 Introduction to Logistics,Definition of Logistics,There are many different definitions for logistics in different countries and periods, and they have always changed with the development of society. Some definitions are typical. The Council of Logistics Management defined the logistics in 1992 as the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.,And the definition from the MIT Center for Transportation & Logistics is that logistics involves “managing the flow of items, information, cash and ideas through the coordination of supply chain processes and through the strategic addition of place, period and pattern values.” In practice, the terms “logistics” and “supply chain management” are now used interchangeably. Actually logistics and the Supply Chain are equivalent terms, so the Institute of Logistics (1998) gave the following definitions:,“Logistics is the time related positioning of resource or the strategic management of the total supply chain. The supply chain is a sequence of events intended to satisfy a customer. It can include procurement, manufacture, distribution, and waste disposal, together with associated transport, storage and information technology1.” In some developed countries, the productivity had risen and the total quantities of products became saturation in the early 1990s, also there were many products which can not be distributed because of the competition. It was difficult to develop the technique as well. People had to find a new way to solve the problems. They intend to expand the market and reduce the cost through the improvement of distribution. It was the initial concept of logistics.,The earliest concept of logistics came from Arch W. Shaws Some Problems in Market Distribution (1915). They called it “Physical Distribution” (PD) at that time. The definition focused mainly on the distribution. In the late 1980s people have already had a general and deep comprehension about logistics. PD as a definition could not characterize the whole frame of logistics. The logistics included not only the physical distribution but also production logistics, returned logistics, material reuse and the contents like that. Logistics as a suitable definition occurred instead of PD.,Logistics Engineering means the management process of choosing the best scheme under the guidance of theories about system engineering and planning, managing, controlling the system with lowest cost, high efficiency and good customer service for the purpose of improving economy profits of the society and enterprises2. In this definition we also integrate the logistics and the flow of information as a system and regard the process of producing, distribution, and consumption as a whole activity.,Contents and Characteristics,The object of Logistics engineering is to solve the problems in logistics system: the first task is to make system plan and design with the theory of facility design; and the second one is to manage and control logistics system so as to reduce the cost and improve the efficiency.,Facility Design,Facility design has been often used in industry department such as factory including layout design, the system design of materials handling, building design, information system design and etc.,Logistics Management,1 Logistics System Design In external logistics system, the design implies the decisions about spots of the networks for materials distribution. But in internal logistics system, the main target is to improve the economy profits of the production system.,2 Transportation/Handling and Storage It contains: The research of production optimization The research of work station and warehousing storage The work-in-process (WIP) products management The methods of planning and organizing the handling vehicles The organizing methods of information flow and the function in logistics,3 Handling facilities, Containers and Package design It contains: The study of warehouse and handling facilities The study of handling vehicles and facilities In these contents, people often call the first two as the “Soft System”, and the last one “Hard System”.,The traditional logistics is defined as the simple pattern of materials storage and transportation. The pattern of modern logistics becomes more complex. It can be characterized by: Rapid logistics response; Serial services; Normative operation; Systematize target and modernized methods; Networking organization; Marketing business; Electronic information.,Functions of Logistics Systems,1. Members in logistics system should collaborate with the active partners and integrate the serial activities of supply chain to improve the management and strengthen the integrated service capability. 2. It is helpful for building the rapid response system. The