Question

Explain various approaches to analysing logistics system.

Answer 1

probably analyze the logistics system in terms of cost centers. In this section, four

approaches to analyzing logistics systems are discussed: (1) materials management versus

physical distribution, (2) cost centers, (3) nodes versus links, and (4) logistics channels.

Materials Management versus Physical Distribution

The classification of logistics into materials management and physical distribution

(inbound and outbound logistics) is very useful to logistics management or control in an

organization. Frequently, the movement and storage of raw materials in an organization is

different from the movement and storage of finished goods.

Balanced System: Some organizations have a reasonably balanced flow on the inbound

and outbound sides of their logistics systems.