APPLIES TO ACADEMIC YEAR 2013/2014

MAD 1214 Logistics

Responsible for the course
Eirill Bø

Department
Department of Strategy and Logistics

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction
Logistics studies the physical and administrative processes that surround the acquisition, handling, storage and transportation of products and materials and discusses how these services are made available to the end customer.

Logistical processes often take place across the traditional internal business infrastructures and they affect both the customer and the deliverer. The way that these processes are carried out has a strong impact on both competition and profitability. As a subject, logistics is currently going through a process of development where the main focus of attention was on cost savings in parts of the value chain. Now a more holistic approach is taking place whereby savings can be made as a result of internal integration within a company as well as by cooperation between the deliverer and customer.

Logistics involves maintaining a broad overview over how an industry chain functions, whilst also maintaining an understanding of how the costs incurred by each component in the chain can lead to different consequences. For example, a strong focus on the costs incurred by storage can contribute to a rise in transportation costs and vice versa.

NB!
This course overlaps with course ELE 3715 Logistics and Marketing Channels (7.5 study points) and with course MRK 3520 Marketing Channels and Logistics (7.5 study points). It is therefore not possible to combine this course with any of these above mentioned courses towards a bachelor degree .

Learning outcome
Acquired Kowledge
After completion of the course students will have a basic insight into what logistics means and how it has developed. Students will be able to:

• Understand logistics and supply chain management
• Recognize models such as Du Pont’s total cost analysis, ABC analyses and other classification models.
• Examples of concepts that students will be able to identify:
  • Delivery service
  • Logistic costs
  • Delivery relations
  • Strategic alliances
  • Optimizing costs
• Recognize models that optimize the movement of goods

• Perform a distribution analysis to find the most effective channels from producer to customer.
• Perform a delivery analysis and know how to make the most effective purchase and how one can foster close relations with individual deliverers.
• Perform a storage analysis and set up a production plan for a specific company.
• Carry out a correct and cost effective delivery service between the components in the supply chain
• Be able to model simple problems in optimalization in connection with transport and storage
• Use Excel Solver to solv optimalization models

Prerequisites
There are no special requirements for this course

Compulsory reading
Books:
Persson, Göran og Helge Virum, red. 2011. Logistikk og ledelse av forsyningskjeder. 2. utg. Gyldendal akademisk. 463 sider

Other:
Roberta S. Russell, Bernard W. Taylor III. 2009. Operations management : creating value along the supply chain. 6th ed. Hoboken, NJ : John Wiley & Sons. Supplement to chapter 11, chapter 14 and Solving linear programming problems with Excel


Recommended reading

Course outline

1. Introduction to what logistics is about – what it encompasses and it’s development
2. Delivery service and it’s significance to the customer
3. How do we quantify delivery service?
4. Prognoses and storage management
5. Production management
6. Puchase and delivery cooperation
7. Distribution and transport’ place in the company and the significance of this for the value chain.
8. Principles for creating effective logistic processer
9. Logistics as a competitive strategy
10. The meaning of logistics for the environment.
11. The impact of information technology on logistics
12. What do the leading logistics companies do?
13. Optimalization models for transport and storage