UNIVERSITY OF MISKOLC INSTITUTE OF LOGISTICS

Logistic systems

Basics of logistics
1. topic

Dr. György Kovács

associate professor
vice-head of Institute
tel.: 20-26 ext.
e-mail: altkovac@uni-miskolc.hu
Building A/5. 111.

UNIVERSITY OF MISKOLC
Institute of Logistics
 LOGISTIC SYSTEMS - GEALT128M-A
2 lectures/week
mark type: term mark
credits: 3

week Topics
1. Introduction, basics of logistics, principles, …
2. Supply chain, supply chain management
3. Logistical aims, Logistical sub-systems
4. Procurement logistics
5. Production logistics
6. Distribution logistics, Recycling Logistics
7. Warehousing
8. Push-, Pull production philosophy
9. JIT philosophy, Kanban system
10. Lean philosophy
11. Material flow machines: Cranes, Trucks
12. Roller conveyors, Belt conveyors
13. Trolley conveyors, Monorail Overhead conveyors
14. Written exam
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UNIVERSITY OF MISKOLC INSTITUTE OF LOGISTICS

What is logistics?

What is not logistics?

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Daily routine

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TRANSPORTATION

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Manufacturing / Assembling

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Warehousing

.
.
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etc.
The word logistic has originated from Greek word ‘Logistikos’
and the Latin word ‘Logisticus’ which means science of
computing & calculating.

In ancient times it was used more in connection with moving

armies, the supplies of food and armaments to the war front.

During World War II. logistics gained importance in army

operations covering the movement of supplies, men and
equipment across the border.

Today
It has a wider meaning and it is used in the business for the
movement of material from suppliers to the manufacturer
and finally the finished goods to the consumers 8
 LOGISTICS

Planning, implementing and controlling the

physical flow of materials and finished goods
from point of origin to point of use to meet
customer`s need at a profit.

“Philip Kotler”

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Figure 1. Definition of logistics concept

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Figure 1. Definition of logistics concept

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Logistics ensures that (7R Principle):
 the right product,
 in the right quantity,
 in the right condition,
 is delivered to the right customer,
 at the right place,
 at the right time,
 at the right cost.

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Classification of logistics systems
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 Classical Supply Chain

Supply chain is a system whose constituent parts include material suppliers,

production facilities, distribution services and customers linked together via
a feed forward flow of materials and feedback flow of information.

J. Stevens, Integrating the supply chain, International Journal of Physical Distribution and Materials 14
Management 19 (8) (1989) 3}8.
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...
TENDENICES IN THE ECONOMY AND IN LOGISTICS

 globalization: global sourcing (global purchase

and global distribution),
 multi-national / multi-site companies,
 numbers and variations of final product
types/services are increasing due to individual
customer demands,
 deepness of the production is decreasing (make or
buy; outsourcing / insourcing),
 specialisation of companies,
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TENDENICES IN THE ECONOMY AND IN LOGISTICS

 automation and robotization of production, material

flow and storage instead of manual operations,
 pull production philosophy instead of push production
philosophy (Just-in-Time supply, production and
delivery),
 Lean manufacturing –waste reduction,
 information demand of logistics systems is increasing
for the optimal operation,
 logistics science and logistics experts have main role
and influence on company activities, 19
TENDENICES IN THE ECONOMY AND IN LOGISTICS

 development and utilization of logistics potential

can result the competitiveness of companies,
 number of suppliers should be decreased (strategic
and reliable suppliers),
 customer oriented production/logistics -
„Customer Engineering”,
 process/project oriented reengineering - business
reengineering,
 higher productivity, flexibility and quality of
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production and services,
TENDENICES IN THE ECONOMY AND IN LOGISTICS

 higher productivity, flexibility and quality of

production and services,
 advanced communication systems and methods
between the members of supply chains
(EDI=Electronic Date Interchange),
 application of benchmarking (comparison with
competitors), best practices,

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TENDENICES IN THE ECONOMY AND IN LOGISTICS

 closed-loop economy, recycling of end-of-life

products, recycling logistics,
 reduction of emission in field of production,
transport, etc. ,
 intensifying of cooperation activities between
companies (automotive industry, telecom-
munication, software industry),
 multimodal distribution (transportation at least by
2 transport modes),
 virtual enterprises,
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TENDENICES IN THE ECONOMY AND IN LOGISTICS

 improvement of logistics informatics:

 Global Positioning System (GPS),
 Global System for Mobile Communications
(GSM),
 possibilities of the On-line-Network
(INTERNET),
 Point of Sale (POS),
 Home-Order and Receive-Market (HORM),

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"Push type" production means Make to Stock in which the production is not
based on actual demand.

"Pull type" production means Make To Order in which the production is based
on actual demand.

Most of supply chains are the combination of push and pull systems.

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How have to flow the information in the logistic system ?

– it has to precede the materials flow (primary information –ordering

information),
– it has to run synchronously with the materials flow (secondary
information –material information),
– it has to confirm the materials flow (tertiary information –
confirmation).

Figure 2. Material- and information flow Information flow

state ith state (i+1)th

Material-, equipment-,
emission flow

Flow of energy

Flow of values

Flow of money 25
Flow of resources
Figure 3. Material and information flow in a logistic system
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Figure 4. Aims of logistics
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LOGISZTIKAI CÉLOK ELÉRÉSÉNEK FŐBB STRATÉGIAI ELEMEI
A logisztikai szervezet
felépítése

A vevői megelégedettség A termékstruktúra

növelése meghatározása

Együttműködés, kooperáció
Újrahasznosítás
(belső, külső)

Ellenőrzés (controlling) A logisztika stratégiai Eszközstruktúra (termelési,

szállítási, raktározási stb.)
elemei
Az információs adatcsere Az információs rendszer
(EDI) struktúrája

A termelés mélysége II. ( A termelés mélysége I. ( make or

outsourcing= gyártáskihelyezés) buy= gyártani vagy vásárolni)

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 Information flow

state ith Material-, equipment-, state (i+1)th

emission flow

Flow of energy

Flow of values

Flow of money
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Figure 6. Logistical operations Flow of resources
 Technology of
material handling
Technics
Production of material
technologies and flow
technics
Technology
and technics of
transportation
Technology of
services

Information
technology

Mathematics
Logistics as an integrated science
Energetics

System
engineering
Electronics, ,
automation
Enterprise
management,
Management Communication
science technology Information flow

Marketing state ith

Material-, equipment-, state (i+1)th

emission flow

Flow of energy

Figure 5. Logistics as an integrated science Flow of values

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Flow of money

Flow of resources
 Purchase logistics

Figure 7.
Logistics subsystems
Production logistics

Distribution logistics
[----------------------------------------------------------------------------] 31
+ Recycling logistics
 Figure 7/a.
Purchase Logistics

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 Figure 7/b.
Production Logistics

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PRODUCTION LOGISTICS

Distribution logistics

Product transport to the Assignment of storage

finish goods warehouse locations of finished products
in the warehouse

Inward handling Scheduling of

loading-in activities

Storage into the finish Selection of equipments applied in

goods warehouse loading-in activities

Inventory
Figure 7/c.
Order picking, packaging,
unit load formation
management Distribution Logistics

Scheduling of loading- out

and order picking
Loading of vehicles

Selection of equipments
Delivery applied in loading-out and
order picking activities

Scheduling of delivery from the

finish product store, determination
and scheduling of transport vehicle

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CUSTOMER
 PURCHASE PRODUCTION DISTRIBUTION
LOGISTICS LOGISTICS LOGISTICS

Packaging Technological Packaging

materials wastes materials

Recycling logistics

Determination of recycling
modes and places

Collection Assignment of storage locations

of wastes and storage equipments

Transport Scheduling of collection and

of wastes transportation
Figure 7/d.
Recycling Logistics
Disassembly, selection and Selection of transport
classification of wastes equipments

Storage Inventory management

Delivery to
Scheduling of delivery
recycling place

Repare Reprocessing Disposal 35

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