8.Design of Logistics

Tranditional Manufacturing:1.Set schedules early2.Use large sizes to make efficient use of equipment and minimize costs.3.Large centralized facilities take advantage of economies of scale

Def.

Production

Concurrent/Parallel Processing

Postponement (Standardization/Product Differentiation)

Ways

Product Cost

need to consider

IKEA/14*14 shelf

1.Ship goods in bulk&complete final packaging at warehouse or retailer.2.Final packageing of goods can be delayed until tje goods actually sold.3.Desigh packaging for cross-docking repackaging operation

8.Design of Logistics

Process

Economic packaging and transportation

Design products for concurrent & parallel processing by decoupling

Benetton(clothing)/HP

Key Cost Driver

Push-Pull Boundary