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No.101 ~ Components or elements of Logistics Management | Student Notes |

Introduction

Hello Everyone, in this article we will talk about the components of logistics management related to production in operation management.

If you want to access more resources, the link to the complete series is available in the description. Additionally, if you want a PDF book of Production and Operation Management, you can check the provided link in the description.

Logistics management involves two primary components: transportation and storage. Transportation is further categorized into road, air, railway, and sea. Likewise, storage encompasses material handling, inventory control, and warehouse management.

Transportation

Road

Road transportation is a very popular mode of transport in India because most villages and cities are connected through roads, unlike air, railways, or water, which do not have reach in every area.

Rail

Railways are typically adopted for transporting heavy products such as steel or cement over long distances within the country.

Air

Air transportation is favored for perishable goods and when items must be delivered over long distances rapidly, both nationally and internationally.

Sea

Although slower than air transport, sea transport is often cheaper and is used for bulk shipments over international distances.

Storage

Storage of raw materials, work-in-progress, and finished goods plays a crucial role in logistics management. It involves material handling, inventory control, and warehouse management.

Material Handling

Material handling includes the movement of materials from one place to another along with related planning, organizing, and controlling to minimize losses and reduce manual handling.

Inventory Control

Inventory control involves estimating the exact quantity of materials needed. It helps avoid overstocking or understocking, thus reducing inventory maintenance costs.

Warehouse Management

Warehouse management involves storing goods in an organized manner, whether in the company's own facilities or rented ones. Proper warehouse management ensures quick retrieval and restocking of goods.

In conclusion, effective logistics management encompasses both transportation and storage. Proper selection of transportation modes and efficient storage techniques help optimize the entire logistics process.

Keywords

  • Logistics Management
  • Transportation
  • Storage
  • Material Handling
  • Inventory Control
  • Warehouse Management
  • Road Transport
  • Air Transport
  • Rail Transport
  • Sea Transport
  • Perishable Goods

FAQ

What are the main components of logistics management?

The main components of logistics management are transportation and storage.

What are the categories under transportation in logistics management?

Transportation in logistics management can be categorized into road, air, rail, and sea.

Road transportation is popular in India because most villages and cities are connected through roads, unlike other modes such as air, railways, or water, which do not have extensive reach.

When is air transportation preferred?

Air transportation is preferred for perishable goods and when items must be delivered quickly over long distances, both nationally and internationally.

What does material handling involve?

Material handling involves the movement of materials from one place to another along with planning, organizing, and controlling these movements to minimize losses and reduce manual handling.

How does inventory control help in logistics management?

Inventory control helps avoid overstocking or understocking, thus reducing inventory maintenance costs by estimating the exact quantity of materials needed.

What is the role of warehouse management in logistics?

Warehouse management involves storing goods in an organized manner to ensure quick retrieval and restocking of goods, whether in the company's own facilities or rented ones.

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