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Material requirements planning (MRP) – what will be needed and when?
Imagine a company that produces electronic equipment such as stereos and TVs. There are several models, sizes, powers, but many components and raw materials are common for various models. To satisfy future demand, how many components should be in inventory in each period? When should each part be ordered? And how many units of each?…
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What is inventory management?
Inventory management, in the context of an industry, usually refers to the material resources management that can help the company generate revenue in the future. The person responsible for this part of the management is the Operations Manager. For example, a retail store that sells various items, such as a grocery store or department store…
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Logistics costs – what costs compose it?
Many people who study and work with logistics sometimes have difficulty defining what logistics is and what makes up the logistics process. Be sure to understand that in our post “What is logistics?”. For a company, it is essential to know where the money is going, and understanding the structure of logistics costs is essential…
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Production management – What it is and how to do it?
Large manufacturing companies run several production facilities and work with budgets and incomes in the order of many millions of dollars. Imagine a large conglomerate of companies that manufacturing dozens or hundreds of products in various locations around the world: their processes are unique and involve high fixed costs, and they must maintain an equally…
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What is inventory control? Doing more with less
Logistics is often visible through inventory and trucks doing transportation. Today we will talk about the importance of a good inventory control and its management, the different types of inventories and the costs that are associated with them. What is inventory? Inventories are products or goods held for future use. These products that make up…
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Demand management and forecasting
All major problems in inventory management arise from failures in demand management and forecasting. One of the most serious problems in inventory management is the bullwhip effect: a small variation in customer demand causes a huge trouble in the upper echelons of the supply chain (distributors, wholesalers, producers). Therefore, good demand management and forecasting is…
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History and evolution of logistics
To understand the concept of logistics and how it affects business competitiveness, we need to understand the history and evolution of logistics management. This management comprises not only the flow of materials, but many other logistics functions that we will discuss in detail here on EasyLogistics.site. History of industrialization The first industrial revolution was also…
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What is logistics?
Here on EasyLogistics.site we approach the most different aspects of logistics, but we seldom stop to think and define what logistics really is. More importantly, we now describe what types of real-life problems companies can solve through good and integrated logistics management. Today, logistics is an art and a science, dedicated to doing whatever it…