1. LOGISTICS MANAGEMENT & PHYSICAL DISTRIBUTION
Logistics management is the process of managing the movement and storage of materials ,parts and finished inventory from supplier through the firm and to customers.
It involves 1.physical supply or material management which involves movement of raw materials to plant and 2.physical distribution ,flow of finished products from the plants to the customers.

2. TYPES OF LOGISTICS
SUPPLIER LOGISTICS-It takes care of the flow of supplies and raw materials from vendor to the company.
It includes 1.supplier evaluation ,2.ordering of the final product.
PRODUCTION/CORPORATE LOGISTICS-It integrates production ,sales , logistics, and after sales service.

3. Replenishment production system-tracks outgoing shipments ,inventory movements , generates market demand and production plan .
Purchase support system-consisting of ordering and payment system to prevent shortages and fulfill customer needs.

4. CUSTOMER LOGISTICS-It is a process of Right quantity, of the Right product, to the Right place, in the Right conditions , at the Right costs , and at the Right time , with the Right impression.
speedy and timely delivery ,low distribution costs , shorter lead time , safety of goods

5. PHYSICAL DISTRIBUTION
Refers to the movement of goods from producers to customers.
It involves
Order processing
Inventory management
Materials handling
Warehousing
transportation

6. PHYSICAL DISTRIBUTION AND MARKETING MIX
PROMOTION-To make product available during promotion to meet demand/reduce distribution to build image of exclusivity.
PRICE-Lowering distribution cost to increase profits.
PRODUCT-Attributes affecting it are weight , size, value, packaging ,delivery schedules

7. OBJECTIVES OF PDS
TOTAL COST GOALS- Minimize transportation , storage ,material handling, cost of lost sales.
CUSTOMER SERVICE GOALS-
TIME
DEPENDABILITY
COMMUNICATION
CONVENIENCE
PRODUCT PROTECTION
ACCURACY

8. FUNCTIONAL AREAS OF PDS
NETWORK DESIGN-No and location of facilities to perform physical distribution.
INFORMATION TECHNOLOGY-Used in sales forecasting and order processing.
TRANSPORTATION –Speed/cost
INVENTORY MANAGEMENT- EOQ
WAREHOUSING-PRIVATE/LEASED/PUBLIC

9. CONTD… MATERIAL HANDLING EQUIPMENTS-
MECHANIZED/SEMI AUTOMATIC/AUTOMATIC(ROBOTICS)
SECONDARY PACKAGING-HANDLING/STORAGE /PROTECTION FROM LOSS OR DAMAGE

10. MAJOR COST ELEMENTS OF PDS
Transportation costs-railway costs , road way costs , sea way costs, airway costs
Inventory costs-ordering & carrying costs
Warehouse costs-cost of land , building, administrative cost
Material costs-material handling equipments , cost of damages
Packaging costs-
Customer service costs-trade off between lost sales & inventory carrying costs