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LOGISTIC INFORMATION SYSTEM AND LOGISTIC PLANNING PROCESS Presented By : Mustafa Bootwala(31) Roma Khot (32) Nida Shaikh (33) Adil Shaikh (34) Amir Reza (35) Naqeeb Sakarkar(05)

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LOGISTIC INFORMATION SYSTEM Definition Importance of Information Main Functions of LIS Take proper decision at all levels in the organization . Provide Database at appropriate stage. Support Planning function. Provide Controls in the operations Communication with concerned persons. .

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Policy Level Decision Level Control Level Operating Level D A T A D E C I S I O N S I N F O R M A T I O N LOGISTIC INFORMATION SYSTEM MAIN FUNCTIONS OF LIS

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Presentation of Information Written Form LOGISTIC INFORMATION SYSTEM Charts Graphs Column sheets Black Board Hoardings Verbal/ telephonic Other Methods

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Characteristics of Information Real Time Information LOGISTIC INFORMATION SYSTEM Accuracy Regular Availability Relevant to Right Person

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Technologies Involves Internet Connectivity LOGISTIC INFORMATION SYSTEM E-Commerce Bar-coding and Scanning EDI (Electronic Data Interchange) XML (Extensible Markup Language) Data Management and Imaging Artificial Intelligence

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Logistics Information Flow Structure LOGISTIC INFORMATION SYSTEM Strategic plan Capacity plan Logistics plan Order Management Order processing Distribution Production plan Procurement plan Transportation & dispatch Purchase Function Inventory Deployment Inventory Management Forecast

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Definition LOGISTICS PLANNING PROCESS Factors Required For Planning Aim to be Achieved Resources Time Period Mechanism to Co-ordinate Involvement of People

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Mission Statement LOGISTICS PLANNING PROCESS Mission of Logistics Planning Methodology Planning Structure In The Organization Mission Strategic plan Functional plan Operative plan

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Logistics Planning LOGISTICS PLANNING PROCESS Influencing Factors On Strategy & Planning Government Regulatory Factors Technological innovation in the company Outsourcing opportunities available Economic and social factor General competitive atmosphere in the markets

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Planning, Budgeting, Controlling LOGISTICS PLANNING PROCESS Action On Operational Level Logistics Plans In Co-ordination With Other Departments Marketing plan Logistic plans Design plans Materials plans Production plan

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CASE STUDY Mumbai flour mills provide high-quality bakery flours to commercial bakers as well as to the consumer market. consistent demand and brand-loyalty, whereas consumers have minimal brand-loyalty Demand is seasonal for the flours with the annual break occurring just before Diwali and slacking off dramatically during January and February The production planning department of the company located at Akola, Maharashtra, has the responsibility for controlling the inventory levels at the plant warehouse at Nagpur as well as three distribution centres located at Nasik in Maharashtra, Bhopal in Madhya Pradesh and Hyderabad in Andhra Pradesh. The lead time of replenishment from Nagpur to distribution centers is 7 days. eighteen pallets can be made available by truck with a 3 days transit time.

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CASE STUDY Recently the company has experienced two major stocks out for its consumer-size 5Kg. sacks of refined quality white flour. One of these was due to problems in milling operations, the other occurred when marketing initiated a “buy one, get one free” coupon promotion. Additionally, two other events have affected Distribution Center’s throughput: (1) implementation of direct factory supply for replenishing the five largest super market chains, and (2) a price increase making Mumbai flour more expensive than its national brand competitors such a Pillsbury or TATA Media. Of 1500 pallets in the Hyderabad distribution centre the Mumbai flour M<Ills shows only 3-9-6 pallets for open orders. This has led the company to use outside overflow storage, where there are another 480 pallets. Flour is easily damaged; hence, Mumbai flour Mills prefers to minimize handling. Over stocking at Distribution centers alone cost Rs.1.85/per pallet for outside storage to which must be added Rs.4.25per pallet extra handling and Rs.225per truckload for transportation.

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CASE STUDY Similar scenarios are being played out at the DCs as well. Mr. Mohan, the distribution manager is contemplating various approaches to solving the inventory problem. It is clear that the product must be in place at time a consumer is making a decision to buy the product, but the company cannot tolerate the overstocking situation and the stress that it is putting on facilities and cash flow Mr. Mohan’s first thought is “a better information system” which will provide timely and accurate information throughout the organization. 1)Evaluate the alternative solution that could be considered by Mr. Mohan 2)What additional solution do you propose? 3)Examine the transportation system and its drawbacks.