Logistics performance objectives

The relative importance of the above logistics performance objectives is usually... 

Table 1.1 Different product ranges have different logistics performance objectives...

The relative importance of logistics performance objectives varies from one situation to another. It can also vary over time. The concept of order winners... 

The company-internal supply chain comprises the core processes source, make, and deliver (Fig. 1, upper). Each of these core processes focuses on different logistic objectives. These objectives create a field of tension between the logistic performance and logistic costs (Fig. 1, middle). Moreover, the objectives to some extent both contradict and complement one another. Finding an optimum within this field of... 

What are the performance objectives of the supply chain, and how does logistics support those objectives ... 

Such performance objectives can, and often are, augmented by other objectives that are outside logistics. These include product superiority, innovation and brand. Here the logistics task is to support such performance objectives in the marketplace. 

In Chapter 1 we looked at the logistics task from a perspective of material flow and information flow. We also saw how logistics contributes to competitive strategy and the performance objectives by which we can measure this contribution. But what is it that drives the need for flow in the first place The key point to recognise here is that it is the behaviour of the end-customer that should dictate what happens. As stated in Chapter 1, the end-customer starts the whole process by buying finished products. It is this behaviour that causes materials to flow through the supply chain. Only end-customers should be free to make up their minds about when they want to place an order on the network - after that, the system takes over. 

Because of its approach directed towards social and environmental objectives allied to economic performance, the eco-logistic driver is represented as a virtuous loop combining the three pillars of sustainable development applied to logistics (see Figure 4.5). 

They proposed that logistics complexity is a driver to define the way a company manages and emphasizes the different supply chain objectives and decision areas, and based on this, a contingency approach for supply chain management is required, where different contextual conditions drive the way the supply chain choices are made and management activities are performed, as opposed to a best practice approach where there would be some universally applicable principles that would be appropriate regardless of the particular conditions under study. 

The criticality assessment method was used in the paper [Augutis et al, in press 2014]. The infrastructure system is supplemented by new objects. The criticality of elements of gas supply system was evaluated according to the presented method and performed important measurement (Fussell-Vesely and Birnbaum) of those elements. Also the logistic regression analysis was used for the first time to assess the components influence on system criticality value. 

Availability is defined as a measure of the degree of the object reside in the state of functional worthiness and possibility of commencement of operation, which start time is a random variable. From the point of view of the user, the availability is a function of the frequency of occurrence of damage and related necessity to perform a repairs, the frequency of preventive handlings, time period of preventive handlings and the time period of logistics delays affecting the object. 

Within the last fifty years the performance requirements for technical objects and systems were supplemented with customer expectations (quality), abilities to prevent the loss of the object properties in operation time (reliability and maintainability), protection against the effects of undesirable events (safety and security) and the ability to restore performance (resilience). The need to adapt the operation of complex systems in such an uncertain and volatile environment has caused the necessity to formulate new and well established achievements associated with modeling, testing and evaluation of these properties. The concept of a complex system applies not only to the technical ones but also the infrastructure of major importance for social life such as transportation and logistics systems, buildings, power systems, water distribution systems or health services. 

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