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2.Logistics processes.
Businesses use different methods of production. Two of the most common production
methods include a sale-order-related production, where a business produces a product in
response to orders for the product, or make-to-stock production, where a company produces a
fixed amount of products and then attempts to sell the products. The production method utilized
by the business and the logistical process associated with the production method affects
personnel, production, material acquisition, warehousing and transportation. The logistical
process starts by having planned orders for materials produced in house created and converted
into manufacturing orders. Once the company manufacturers the order, the company will either
stock the products in a warehouse or directly fill orders for the customer.
Logistics is the planning framework used by the management of an organization to
facilitate the distribution of personnel, materiel, service, information and capital flows. As a
process, logistics continues to become more complicated because of the increased demand for
complex information and communication control systems of today's global business
environment. An efficient logistics process within an organization will apply tools to analyze and
visualize the complexities involved in production. These tools should integrate information,
inventory, production, warehousing, personnel, materials, packaging and the secure delivery of
the final products.
A logistical process tries to find the best solution for manufacturing and distributing
goods by considering how the market uses these products. As part of this process, a company
should always consider the location of a product and analyze the various factors associated with
these locations. This includes production costs, personnel, the time and cost required for
deconsolidation, and warehousing possibilities, including cost and space. As part of this process,
a company also should consider the factors that affect production quality and efficient
transportation between hubs. Business logistics is the process of planning, organizing, and
controlling the movement of supply, inventory, and information within a company. It generally
involves the inflow and outflow of goods and information from the purchase of raw materials, to
the transportation of goods in different stages of production, all the way to the distribution of
goods to the end user. Through effective execution of business logistics, a company can save
time, resources, and cost.
Logistical processes facilitate the relationships between production and the movement of
products. Specifically, logistical processes should address many of the aspects of production,
including time, costs and quality. When a company successfully coordinates these logistical
processes, the company can track the process through production, consumption, storage and
disposal. A functional logistical process also relies on the proper geographical location of all
assets within the organization.
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