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Vol 26 - No 06 - July/August 2000 Logistics and supply chain development: Part Three This third article discusses the results of a numerical analysis that permits management to compare the logistics costs for existing inbound and outbound supply chain configurations with alternative strategies... Focus of the analysis is on direct materials and transport costs. A quantitative simulation tool was developed from in-depth work to identify and quantify inbound and outbound logistics metrics. Effects of the material costs, safety stock requirements and transport cost were identified. The simulation tool is essentially generic and applicable to a wide range of industries. Results obtained from this work support the validity of generic strategic guidelines for logistics and supply chain development that are core to the lean and agile paradigm. Since small and medium sized enterprises can develop in partnership on a global basis with their customers, such an analysis is of use in understanding their customer’s strategic objectives... Page number: Page: 21 Word count: Words: 1500 Related Topics: Logistics Modelling Supply chain
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