Logistics

Eric StrzempekBrian Tidd

Carolyn Welch

Class Diagram

Stage Description

Planning Manage purchase/delivery system -Gather route information -Schedule truck and driver to territory -

Identification Identify material requirement -Receive packing slip from sales department -Receive purchase order information -Receive approved return slip (if needed)

Negotiation Specify detail information -Specify time of delivery/pickup -Communicate schedule to drivers -Develop route information

Actualization Ship/Pickup actual inventory

Post Actualization Warranty procedures

Logistical Development Stages

Reporting Issues• Issue: Standard costing of logistical

services• Solution: Implement ABC costing

-Gather cost information-Identify appropriate cost drivers-Implement Activity Based Costing

• Results: More accurate product costing-Accurate pricing-Better decision making

Control Concern

• Physical Asset Security-Employee theft-Inventory management control

• Mitigating Controls-Physical access entry control-RM bar code system-Inventory mgt. policy and procedures

Trip

Schedule

Territory

Truck

Driver

Value Added Classes

Trip Leg

Drop Off Pick Up

Customer Finished Good Vendor Raw

Material

Proposed Generalization