Main Elements Of Logistic Systems

Posted by Jerald

There are two types of logistics systems: micrological and macro logical. A macro logical system is a material flow management system. That includes businesses and manufacturing organizations, intermediaries, trade, and transportation organizations from different departments across the country or across countries. A macro-logistic system is a region’s, country’s, or community of countries’ economic infrastructure.

Direct-connection logistic systems, layered logistic systems, and scalable logistic systems are the three forms of macro logic systems.

Elements Of Logistic

Smaller intra-production logistic systems make up macro logistic systems, which are a subset of macro logistic systems. Manufacturing and trading firms, for example, are two technologically connected industries linked by a common infrastructure.

Properties Of A Logistic System

Integrity, separability, complexity, variability, coherence, organization, stochastic behavior, adaptability, integration, and optimality are all properties of a logistic system.

Within the context of the problem of analysis and synthesis of a logistic system. That performs a local target function, an entity (link) of a logistic system is functionally isolated.

The links that bind the logistics system can be divided into three groups. Material development, transformation, and absorption, as well as information and financial flows, are examples of such activities. There are also mixed logistics framework connections, which combine the basic types of links described above in various ways.

Enterprises and companies will be the components of a macro logistic system. While recruitment, preparation and management, and sales will be the subsystems of a micro logistics system.

The elements of the transportation network can be organized into multiple sets. Each of which differs in terms of how the elements in these sets are organized. Such as logistics channels, logistics networks, and logistics chains.

The Length And Width Of A Logistics Channel 

The channel is called horizontal when the intermediaries between the manufacturer and the customer are different companies. There are traditional product distribution networks.

Participants in the distribution chain. Must conduct the following tasks: market analysis, sales promotion, product adaptation, negotiation, inventory circulation organization, funding, and risk-taking.

During the delivery of finished goods, all of these tasks must be completed. For each role, it is not mandatory to add a new member of the logistics channel; however, all of them must be present, implying that participants will perform multiple functions. While the distributor can sell some of them directly, this increases the operator’s costs. Intermediaries, on the other hand, lift the price of products to cover their costs of raw material movement. But the producer’s costs are minimized in this situation.

The manufacturer’s selection of distribution channel representatives is a vital decision.

A logistics chain is a set of enterprises and organizations. That links a customer to a retailer and conducts logistics operations. To convey external material flow from one micro-logistics system (manufacturer) to another (consumer).

Suppliers, warehouses, and transportation companies; goods manufacturers; product manufacturers; distribution centers; financial institutions (banks, stock exchanges); information and computer service and communication businesses.

The Components Of The Logistics Chain 

The logistics chain’s components can also be combined to create a logistics network. Via material, financial, and information flows, they are linked. Many of the logistics networks in the framework make up the logistics network. Logistic networks can be classified according to their degree of complexity.

When creating a logistics channel, it is important to specify which types of intermediaries will be used. Dealers (exclusive and authorized), distributors, commission agents, brokers, and agents are the most common forms of intermediaries (generic and general).

After you’ve decided on the form of intermediary, you can move on to the next step. The number of intermediaries is the next step in the construction of a distribution channel. Three methods for deciding the number of intermediaries in a distribution system are intensive distribution, exclusive distribution, and restricted distribution.

Designing, making, and explaining decisions is an operation. Logistics system research is the study and improvement of logistics systems.


Precisely and explicitly describe the logistics system

Collect data on a specific logistics system

By deciding the element’s role in solving the logistic problem, determine the structure, methods, types, and ways of interacting with other elements of the logistic system

Determine the most important goals for the formation and growth of the logistics system

Elements Of Logistic Systems

Evaluate the degree of interconnection between the logistics system’s goals and the methods for achieving them

To develop a range of options for the logistics system’s expansion while taking into account a variety of internal and external factors

Assess the best course of action for the logistics system

Compare the effectiveness of the interactions between the elements of the logistics system, detecting and removing bottlenecks

To examine the efficacy of the enterprise management organisation, functions, and management body composition

Provide basic performance metrics for the logistics system.

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