Logistics, Operations and Supply Chain Management

1 HkkjrStudent HandbookClass XIIS hiksha Kendra, 2, Community Centre, Preet Vihar, Delhi-110092 CENTRAL BOARD OF SECONDARY EDUCATIONL ogistics, Operations and Supply Chain Management Logistics, Operations and Supply Chain Management Logistics, Operationsand Supply ChainManagementStudent HandbookCLASSXIIS hiksha Kendra, 2, Community Centre, Preet Vihar, Delhi-110092 CENTRAL BOARD OF SECONDARY EDUCATIONH kkjrLogistics, Operations and Supply Chain ManagementStudent handbook , Class XIIP rice: `First Edition: February 2017, CBSEC opies:Paper used: 80 Gsm CBSE Water Mark White Maplitho"This book or part thereof may not be reproduced byany person or agency in any manner."Published By:The Secretary, Central Board of Secondary Education,Shiksha Kendra, 2, Community Centre, Preet Vihar,Delhi-110092 Design, Layout: Multi Graphics, 8A/101, WEA Karol Bagh, New Delhi-110005 Printed By:Hkkjr dk lafo/kuewy d kZO;m sf'kdk1ge] Hkkjr ds yksx] Hkkjr dks ,d izHkqRo&laiUu lektoknh iaFkfujis{k yksdra=kkRed ; cukus ds fy,] rFkk mlds leLr ukxfjdksa dks%lkekftd] vkfFkZd vkSj jktuSfrd U;k;]fopkj] vfHkO;fDr] fo'okl] /eZvkSj mikluk dh Lora=krk]izfr"Bk vkSj volj dh lerkizkIr djkus ds fy, rFkk mu lc esa O;fDr dh xfjek2vkSj jk"V dh ,drk vkSj v[kaMrk lqfuf'pr djus okyh ca/qrk c<+kus ds fy,n`<+ladYi gksdj viuh bl lafo/ku lHkk esa vkt rkjh[k 26 uoEcj] 1949 bZ dks ,rn~}kjk bl lafo/ku dks vaxh r] vf/fu;fer vkSj vkRekfiZr djrs gSaA1-lafo/ku (c;kyhloka la'kks/u) vf/fu;e] 1976 dh /kjk 2 }kjk (3-1-1977) ls izHkqRo&laiUu yksdra=kkRed ; ds LFkku ij izfrLFkkfirA2-lafo/ku (c;kyhloka la'kks/u) vf/fu.

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3 E] 2002 dh /kjk 4 }kjk izfrLFkkfirATHE CONSTITUTION OF INDIAPREAMBLE1WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to secure to all its citizens :JUSTICE, social, economic and political;LIBERTY of thought, expression, belief, faith and worship;EQUALITY of status and of opportunity; and to promote among them all 2 FRATERNITY assuring the dignity of the individual and theunity and integrity of the Nation; IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION OF INDIAC hapter IV AFUNDAMENTAL DUTIESARTICLE 51 AFundamental Duties - It shall be the duty of every citizen of India-(a)to abide by the Constitution and respect its ideals and institutions, the National Flag and the National Anthem;(b)to cherish and follow the noble ideals which inspired our national struggle for freedom;(c)to uphold and protect the sovereignty, unity and integrity of India;(d)to defend the country and render national service when called upon to do so;(e)to promote harmony and the spirit of common brotherhood amongst all the people of India transcending religious, linguistic and regional or sectional diversities; to renounce practices derogatory to the dignity of women;(f)to value and preserve the rich heritage of our composite culture;(g)to protect and improve the natural environment including forests, lakes, rivers, wild life and to have compassion for living creatures;(h)to develop the scientific temper, humanism and the spirit of inquiry and reform;(i)to safeguard public property and to abjure violence;(j)to strive towards excellence in all spheres of individual and collective activity so that the nation constantly rises to higher levels of endeavour and achievement.

4 1(k)who is a parent or guardian to provide opportunities for education to his/her child or, as the case may be, ward between age of 6 and 14 , by the Constitution (Forty-Second Amendment) Act. 1976, sec. 2, for "Sovereign Democratic Republic ( ) , by the Constitution (Forty-Second Amendment) Act. 1976, sec. 2, for "unity of the Nation ( ) by the Constitution (Eighty - Sixth Amendment) Act, 2002 Economic liberation through systemic reforms made by the Government has ushered, in India, an era of enhanced opportunities. As foreign investment and new businesses are entering the Indian market, there has been a greater focus on making systems efficient and reducing wastages. To meet the need of making Supply chains reliable, efficient and sustainable, the field of Logistics, Operations and Supply Chain Management has assumed a greater degree of importance in today s demand for focused Supply Chain services has been fueled by industries with a high propensity to outsource, namely, automobiles, consumer packaged goods, hi-tech, telecom and retail amongst others.

5 Movement of basic commodities for both domestic consumption and export/import has led to increase in multimodal and bulk transportation and proliferation of ports and related services. The Indian logistics sector has grown at a healthy 15% in the last five years and is expected to continue to grow address the need of economies for skilled manpower, the CBSE has undertaken the project of introducing competency based Vocational Education in its affiliated schools. As a sequel to this, a new course on Transport Systems and Logistic Management is being launched. This will help students to either join the industry after Class XII or pursue higher education in this field. The Student handbook deals with the concept and objectives of logistics, Management of inventory and freight and, the use of information technology for inventory Management . The emerging issues in Supply Chain Management and logistics are also Board is grateful to the members of the Course Committee for their advice, guidance and commitment towards development of the course and this handbook .

6 We are indeed indebted to these academic advisors who have lent us the benefit of their rich and insightful experience. I would like to appreciate Vocational Education Cell, CBSE for coordinating and successfully completing the K. Chaturvedi, IASC hairman, CBSEP refaceAcknowledgementsAdvisorsContent Developed ByEditing & Coordinationl Sh. R. K. Chaturvedi (IAS), Chairman, CBSEl Sh. K. K. Choudhury, Controller of Examinations, CBSEl Dr. Shardul Chaubey, Assistant Registrar, BHU and Former Reader,School of Management Sciences, Varanasi ( ) - (Convener)l Ms. Indrani Sen Gupta, Assistant Professor, AURO University, Surat, Gujratl Dr. Achintya Singhal, Assistant Professor, Department of ComputerScience, BHU, Varanasi ( )l Dr. Irfan Khan, Assistant Professor, Faculty of Management Sciences, BHU, Varanasi ( )lProf. Rachana Dubey, Principal, Arya Mahila College, Varanasil Dr. Biswajit Saha, Additional Director ( ), CBSEC ontentsUNIT - 11 UNIT - 2 25 UNIT - 3 40 UNIT - 455 UNIT - 588 Logistics and System Concept, Objectives and Role of Logistics Inventory Management Freight Management Logistics Management and Information Technology Emerging Issues in SCM and LogisticsLogistics, Operations and Supply Chain Unit Overview & Logistics: A System Logistics Logistics Management - Role of Logistics in the Supply Transport Corporation of India - Indian Road Freight Catalysts for Outsourcing Benefits of Logistics Third Party Fourth Party Career & Growth in Logistics and Supply SummaryThe unit is an attempt to give idea how logistics works as a system.

7 It also helps to understand about the different elements in logistics system. It also provide an insight about objective and role of logistics in Supply Chain . Third party and fourth party logistics along with career and growth in logistics and Supply Chain is expressed in brief to tell its Unit is expected to impart the following knowledge and skill: Understand the concept of logistics as a system. Exposure to different elements of logistics system. Assist to understand the objectives of logistics Management & its role in Supply Chain . Understanding to know third party logistics and fourth party logistics. Provides exposures about career & growth in Supply Chain Coyle, John J., Edward J. Bardi, and C. John Langley, Jr., The Management of Business Logistics: A Supply Chain Perspective, Mason OH: South-Western Thomson Learning (2013).2. Donald J. Bowersox and David J. Closs, Logistical Management : The Integrated Supply Chain Process, Tata Mc Graw-Hill Publishing Company Limited, New Delhi (2004).

8 , Vinod V., Logistics Management : The Supply Chain Imperative, Pearson, New Delhi (2010). Unit Overview & Description Knowledge and Skill OutcomesResource MaterialLogistics and System Concept, Objectives and Role of LogisticsUNIT 12 Learning OutcomesAssessment PlanUnit ILogistics and System Concept, Objectives and Role of LogisticsOutcomesExplain logistics with certain citationslike Mumbai logistics as down the different elements : A system Management - the important objectives oflogistics is the role of logistics in Supply of logistics in Supply - Indian road freight are the catalyst for benefits of 3 4 for outsourcing of logistics party party and growth in logistics andsupply career options of logisticsand Supply ITopicAssessmentMethodTime : Question &Answer, T & : A system conceptLogistic functionsExercise: T & F, Question & Answer, Match the Management - objectivesExercise: T & , , , , , : Question &Answer, T & FRole of logistics in thesupply Chain , TCI - Indian road for outsourcingtrends, Benefits of logistic outsourcing, 3 PL and 4 : T & FCareer & growth in logistics & Supply , Operations and Supply Chain IntroductionThe word Logistics traces its origin to the Greek word logistikos and the Latin word logisticus, meaning the science of computing and calculating.

9 In ancient times, the term was frequently used in connection with the art of moving armies and supplies of food and armaments to the war front. The use of this word can be traced back to the seventeenth century in the French army. But during World War II, logistics gained importance in army Operations as a term referencing the movement of supplies, men and equipment across the border. The US army officially used the word "logistics" after World War II. Today logistics has acquired a wider meaning and is used in business to refer to the movement of raw materials from suppliers to the manufacturer and, finally, the movement of finished goods to the is also referred to as a physical distribution. Philip Kotler defines logistics as "Planning, implementing, and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customers need at a profit." The American Council of Logistics Management defines logistics as "the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customers requirements.

10 "Figure : Pizza from the Angle of LogisticsLogistics DefinedLogic in Logistics for 30 Minutes Pizza4 Ideally, the time taken for registering the order should be one minute. After that the pizza goes to the guy in the "make line". He takes two minutes, and then oven time is five minutes. When the pizza comes out of the oven it is inspected. One minute goes into quality check and packing. Another minute goes in checking the route and confirming the order one last moment he is leaving, the delivery boy shouts the out-of-the-door time, which is normally between 10 and 12 minutes. Then everybody yells out "drive safe". When he returns he punches the time in. At the end of the day the average delivery time for all his orders is checked. This helps the manager figure out which orders were not delivered in time. The next day, the store manager calls each one of those whose orders got delayed and essence is process sequencing, just-in-time inventory availability, and time Management for the success in this service operation Discuss the definition of logistics as given by American Council of logistics of Mumbai offer a reliable fool proof logistics system of delivering lunch boxes to over 200,000 office employee every day without mix up of having the wrong tiffin going to the wrong office or arriving late, irrespective of conditions such as rains, strikes, and scorching heat.