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Er. H. Manjunath
Project Report:
Subject
Presented to :
Er. H. Manjunath
Prepared by :
Date
10/10/2008
Er. H. Manjunath
Index:
Sr No.
Contents
Page
Nos.
Definition
1.2
Importance of information
1.3
1.4
Presentation of Information
1.5
Characteristics of Information
1.6
Technologies Involves
1.7
Knowledge Management
1.8
2.1
Definition
2.2
2.3
Mission Statement
2.4
Er. H. Manjunath
2.5
Planning Methodology
2.6
2.7
Logistics Planning
2.8
2.9
2.10
2.11
that
together
make
relevant
information
IMPORTANCE OF INFORMATION
In the new competitive world success is measure of more
sales, increased profit or a growing customer base. More
important is to get an edge over the competitor. For that
Er. H. Manjunath
setting
benchmarks
and
measuring
The
critical
factors
are
the
quality
of
the
Er. H. Manjunath
of
decisions
the
professional.
that
can
make
The
a
logisticians
measured
can
take
difference
for
companies.
Example-In the small enterprises like hotel industries the
practice of ordering has progressed from phone to fax. And
now it is shifting from faxing to Internet mode.
Importance
D
A
T
A
I
N
F
Contd..,
O
R
M
A
T
I
O
N
Policy Level
Functions
Decision Level
Control Level
Operating Level
D
E
C
I
S
I
O
N
S
Er. H. Manjunath
charge
hand,
loading-unloading,
warehouse
of
the
operating
level
by
analyzing
the
6
Functions Contd..,
Er. H. Manjunath
quality
information
at
every
point
in
the
organization.
PRESENTATION OF INFORMATION:
The style of presenting the information is important. It
is to be seen by whom the information is to be used and the
purpose. Generally the people are anxious about getting
some or other information. As much as transparency is
there in the organization the flow of information is fast and
clear. In the absence of transparency the people are left
without
needful
information.
The
presentation
of
Er. H. Manjunath
Written Form
The
written
information
is
called
as
proper
Charts
In the similar way bar charts are useful to get comparative
picture of different attributes.
As
shown
in figure the comparison is given for two year
Presentation
of Information
performance of the company in view of different attributes,
such as sales, profits, reserves, pending orders, etc.
The attribute is displayed in the bar chart like shown in the
figure. There are cases which are well presented by pie
charts. Different constitutes are properly indicated on these
pie charts.
The figure shows the bar chart shows the data to compare
the information. These types of charts are good for the top
management to get them right comparison for attribute.
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Graphs
The
graphs
are
important
method
to
present
the
For Example
The extent of rejection due to a typical problem on the
production shop is shown on the Y axis and the X axis the
dates are given. Such a graph gives information to the
production manager.
The sales figure related to the date or month are indicated
on the graph the management to get an idea of the growth
of dispatches.
Columns sheets
The charts are useful to get the data in tabulated forms.
Different attributes are given in the tabulated form.
This method is good for the middle level management. They
Presentation of Information contd
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Black Board
Black Boards are provided in the departments, shop floor.
On these boards the important information is mentioned.
This information is usually the company matters related the
working of that department. For example on shop floor it is
indicated, as to what is the production planned and
scheduled for that period. What is major problem and
hurdle to achieve that scheduled quantity? Important data
should be highlighted on these boards to make clear the
needs to all concerned. Also the same should be explained
to the proper persons.
Hoarding
Very important information is displayed on the hoardings,
which are displayed at important place in the organization.
Generally all are concerned with this information. This may
be generally a one line statement. This may the statement
indicating a receipt of the large order from important
Presentation of Information contd
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Verbal/Telephonic
What ever the mechanism available, it can not eliminate the
speaking of the people with each other. In the department
matter people should continue telling information to each
other and check the communication in complete and it is
understood by the concerned persons. At long distance
appropriate use of the telephone/mobiles has to be used to
convey the problems and information. The heap of computer
statements or the emails can not become the substitute for
verbal transfer of information.
Other Methods
This is the system in Amada company in Tokyo, Japan. We
were taking lunch in the staff canteen. It was a big size
descent place. Staff and important clients were enjoying
delicious food. Few sweet beautiful girls came in the gallery
area in good music. They displayed big banner. It showed
the Orders which were received by company yesterday. The
value of those orders. The order completion is scheduled
etc.
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CHARACTERISTICS OF INFORMATION
The information is the major factor, which helps to create
data to take actions, make perfect plans, as well as decision.
Proper planning and utilization of space delivers improved
warehouse inventory visibility.
Enhanced
visibility
decrease
buffer
stock,
increase
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Accuracy
The information should be accurate. The facts and figures
should match the real position, where the event takes place.
As the event changes, the information also should be
updated. Old information will lead to wrong decision. This
increase labour efficiency through system directed picking.
Pick rates are improved. No more lost or misplaced
inventory.
Accurate
real-time
data
decrease
or
even
Regular
Availability
Characteristics
of Information
The information should be available on regular basis,
constantly and any place. It should not be difficult to
retrieve from the source. Rapid availability can only make
right person to take right decision. The managers, client,
supervisors should be in position to get information and any
uncertainty of order, production should be understood
immediately. Such a thing is only possible in the computer
system. Management can respond the customer and take
right decision for any change. Since the logistics area is
highly
spread
geographically
it
is
required
to
have
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TECHNOLOGIES INVOLVES
With the advent of the improvement computer technology
the information system in the organization is becoming easy
job. It provides all the necessary needs of the perfect
information system. The speed , the real time information ,
Characteristics of Information contd
14
satisfied
by
Information
the
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application
systems
help
of
computer
managers
to
technology.
monitor
pre
Internet Connectivity
Internet-enabled Information systems have great potential to improve the
efficiency and effectiveness of supply chain activity.
Direct
link
between
the
companies
is
possible,
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E - Commerce:
This is the emergence of new system of selling, buying
through the internet connectivity. The
long chain between the real consumer
and the manufacturer is eliminated by
this method. Thus resulting is much
cost reduction of logistic operations on
both the sides. The consumer ticks on the list of articles that
he needs and places the order to the manufacturer on the
internet. The internet connectivity is now available to the
common
people
at
their
home
places.
They
find
it
programmer
to
assemble
hardware
and
software.
Data manager to build data warehouse.
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is
most
commonly
used
automatic
container
of
the
product
accurately.
The
read
information
is in
the digital form. This gets fed to the
Technologies Involves
contd
computer immediately. This information is available to be
used immediately.
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RF Technology
This uses radio frequency to transmit computer outputs,
possibly from an expert system to human operated devices,
such as, a forklift. This optimizes quality, efficiency, and
accuracy. This helps two way communications. On board
Technologies Involves contd
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Artificial intelligence
This is a system where the actual happening in future can
be predicated by the equipment. In logistic management
this is used to get idea of transportation time, type and cost
involved, inventory levels in the warehouses, customer
service response, and time required for delivery. These
issues are generated as model by feeding the relevant data
to the system.
Export System
This is the computer program which gives solution to the
problem
by
the
computer.
It
offers
to
common
KNOWLEDGE MANAGEMENT
Technologies
Involves
contd
To
maximize
the
results of an environmental scan, the
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Channel partners
Internal audit or external consultant
Other internal logistics initiatives
It is increasingly popular to dedicate a website to hold
information from the scan.
Many logistics managers do not believe that reports
communicate effectively. Firms must have a scientific and
intuitive knowledge of customers and suppliers information
requirements. Lack of co-ordination and integration are the
key logistics and supply chain processes. See that logistics
organization strategies move from a functional to a process
orientation. Early implementation efforts may suffer due to
poor data or the non-availability or none sharing of future
data.
Knowledge Management
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Capacity
plan
Forecast
Logistics
plan
Production
plan
Procurement
plan
Inventory
Deployment
Inventory
Management
21
Order
Management
Order
processing
Distributio
n
Transportation
&
dispatch
Purchase
Function
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Operation Flow
For accuracy requirements the hardware and software parts
of the computer system become backbones of the total
information system. These include computers, servers, and
internet connectivity, input and output devices as hardware.
The relevant logistic program becomes the software part.
Logistics Information orders
Flow
Replenishment
on the production shops as well as
ARCHITECTURE:
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23
LPP Definition & Factor
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Bar
charts,
PERT/CPM.
Third
party
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MISSION STATEMENT
For any organization, planning is essential for its survival
and growth in its business. While planning, management
should take into consideration the overall mission statement
of the organization and develop specific action plans to
enable the organization to move in the proper direction. For
the rapidly changing business environment, managers need
to
anticipate
changes
and
equip
their
organizations.
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service
through
efficient
operations.
Thus,
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PLANNING METHODOLOGY
The strategic plan is generally developed at the top level
with the basis of long term needs. The strategy is based on
the mission. On the basis of the yearly budgets made. These
are passed on to the concerned departments to create their
project plan, which are functional plans.
Mission of the company gives rise to the strategic plan at
top level. The plan for each department like marketing,
production, design, logistics, etc., is derived from the
companys strategic plans, which are developed at the top
level.
The planning vision for strategic planning may vary from 2
to 5 years. It is less detailed and its focus is on competition,
resources and stake holders. It integrates the corporate and
the supply chain. The strategic plan usually include
projected
revenues
and
expenses,
lines
or
business
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FUNCTIONAL PLAN
ORERATIVE PLAN
department.
Controlling
activities
during
LOGISTICS PLANNING
The internal production capacity expansion plans and
also suppliers expansion plans are concurrently decided on
28
Planning Structure & logistic Planning
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logistical
operations
and
the
plans
for
procurement
of
materials
required
for
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government
rules
and
regulation
make
lot
of
government.
They
offer
some
concessions
to
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Pollution control
Special interests
Outsourcing Opportunities
There
are
areas
where
the
small
industries
have
Tata
Competitors in Market
The field in which the company is working are to be
considered to get an edge over them. New entrants are
more attacking and aggressive. Many small unorganized
Influencing contd..
31
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system
and
economic
situation
has
to
be
considered.
Rate of change
Availability
Cost
Interfaces
These factors interact with each other. Based on the
forecasted trends in factors and the projected inflation and
economic growth rates, the corporate strategic planning is
carried out.
Influencing contd..
32
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by
senior
managements
and
the
accounts
Low
cost
is
the
primary
objective
of
33
Planning, Budgeting, Controlling
product lines.
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management
will
expect
some
cutting
down
in
material
handling
or
transportation
34
Waste,
rework,
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rejection,
pilferage
budget-Cost
of
management.
new
software
Maintaining
for
and
logistics
running
information
number
of
plan
guides
management level
and
the
activities
at
the
junior
35
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level.
These
activities
like
dispatching,
raising
help
to
refine
logistical
strategic
plans
like
intension
of
integrated
planning
logistics
process,
strategic
to
planning
achieve
is
an
competitive
36
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has
to
be properly
formulated
by
Marketing
Plan
Logistics
Plan
Design
Plan
Materials
Plan
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and
coordinated
appropriately.
Strategic
and
deletions,
(v)
customer
and
(iv)geographical area.
Logistics does contribute t6o and support an organizations
strategic planning process in a number of ways. They are as
follows.
Reduction in inventory resulting reliability of delivery
time.
Achieving improvement in customer service.
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marketing
advantage
from
consistent,
Logistics
must
participate
with
the
Logistic
Plan in Co-Ordination
contd
organizations
management
in setting such policies to
ensure
that
they
are
feasible
and
economical.
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analysis.
Also
it
is
responsible
for
capital
locations
and
in
the
field,
equipment
arrangements
between
various
channel
members.
SEMESTER V
Logistic Plan in Co-Ordination contd
SECTION I
I) Answer the Following Question In Brief
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(1) Cross-docking.
(2) Economic order Quantity.
(3) Fill rate.
(4) Bill of Materials.
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Additionally,
two
other
events
have
affected
42
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timely
and
accurate
information
throughout
the
organization.
QUESTION:
1) Evaluate
the
alternative
solution
that
could
be
Explain
the
various
factors
deciding
the
number
of
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1) Cross Docking
shipments
from
different
sources
and
docking
eliminates
the
inventory
holding
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that
determine
the
order
quantity
remain
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3) Fill Rate:
When orders are received, you want to be able to
confidently
promise
availability
and
meet
those
multiple
groups,
departments,
plans,
and
date,
flexible
business
rules
let
you
define
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Days in inventory
Days sales outstanding
Fixed assets utilization
Revenue growth
Order fill rate
Customer turnover
Order to invoice lead time
Manufacturing equipment utilization
Fulfillment
accuracy
University
Q. Paper Solution
Use
substitute
components
or
products
to
meet
customer orders
Manage availability, stock-outs, partial shipments, and
returns
Stop using fixed quoted lead-times on sales orders
Reduce or eliminate errors and inaccurate deliveries
for configurated products
Reduce time needed to prepare and process sales
quotations.
Reduce partial order shipments
Reduce customer change orders
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4)Bills of Materials
The bill of material is prepared from the product design
documents. Each product is basically the assembly of the
number of components. Before reaching to the final
assembled product for convenience the engineering person
has to make several sub assemblies depending upon the
complexity and the size of the product. It is never true that
all the components come to one assembly station and the
full product gets assembled.
Obviously the components are made from some raw
material. The raw material is required to be planed I if the
said components is made in factory.
Product A
University Q. Paper Solution
SA 1
SA 2
SA 3
C1
C2
C3
C4
C5
C6
C7
C8
C9
R
M
R
M
R
M
R
M
R
M
R
M
R
M
R
M
R
M
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Er. H. Manjunath
50
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Additionally,
two
other
events
have
affected
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and
accurate
information
throughout
the
organization.
QUESTION:
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LOGISTICS PLANNING
Logistic master planning is a systematic approach to
logistic-engineering
based
on
logistics
planning.
The
Organization requirements
for customer
service
and
ore... processing,
Inventory planning and management,
Supply,
Transportation and distribution.
Short-term and long-term recommendations are evaluated
University Q. Paper Solution
53
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logistics
information
and
organization
system requirements;
and
training
requirements.
The
MRP
The computers can be great help to the material manager.
Further with the help of specialized software experts
MATERIIAL
REQUIREMENT
PLANNING
(MRP)
is
indicated.
54
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that
together
make
relevant
information
55
University Q.
D
A
T
A
I
N
Paper
F
O
R
M
A
T
I
O
N
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Policy Level
D
E
C
I
S
I
O
N
S
Solution
Decision Level
Control Level
Operating Level
docking
eliminates
the
inventory
holding
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57
University Q. Paper Solution
Er. H. Manjunath
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Er. H. Manjunath
Cost:
Cost per ton-mile is considered. Tariff charges, extra
inventory, warehousing, buffer stock, broker fees customs
are the contents of the cost. The air transport is costly. Still
from the point of view of the product the right combination
has to be derived.
Transit Time:
The time from the shipment of the order at the origin to the
receipt of the order at the destination, with Security of the
goods is considered.
System stops may jeopardize goods; risks lessen when
goods are in transit. Modal Characteristics and Selection is
to be done. Hazards and regulations differ for each mode of
transportation. The transporter's efficiency depends in
observing the time when material in movement, as against it
is lying stationary at his yard.
University Q. Paper Solution
Safety:
Concerns about safety at all levels from start to end of
delivery. Proper storage and handling equipment, customer
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Reliability:
It is meeting schedules on time as per requirement of the
customer. From the point of view of logistics this is
important. Faster the mode the reliability increases. But it
has to be weighed against the cost. However the systematic
working improves reliability.
Claims record:
The damage of the goods is important problem. Damaged
goods cannot be used by the client. Damage, pilferage and
theft type of matters is the blunt on the name of transporter.
The supplier has to fill up claim forms and get the money.
The customer remains dissatisfied since he does not get the
material. The insurance expenses increase in such type of
cases.
Responsiveness:
The ability to handle various products is considered. The
transporter has to respond the changing needs of the
supplier. Services to be provided without following rigidity
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Speed:
With this attribute the door to door delivery time is
considered. Time starts from releasing the product from
supplier. Although the mode of transportation is important,
the methodological working at the transporter's place
makes the difference. Those methods should display ability
to deliver on time.
Capability
Here the number of geographic points served is import a: it.
The transporter should be in position to deliver the goods at
any remote place. Also the ability to move special,
hazardous materials is considered.
Accessibility
The transporter has to be capable of door-to-door pick up as
well as delivery. The Terminal Operations have to be known
perfectly.
Terminals
serve
to
sort
and
consolidate
terminal
operations,
Railroad
yard
operations,
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Er. H. Manjunath
SECTION II
3) Explain the various factors deciding the number of
University Q. PaperAlso
Solutiondiscuss the basic layout and design
warehouses.
objective of a warehouse.
In order to take decisions regarding warehouses, a firm
needs to consider the following:
The ownership: whether owned or hired;
The number of warehouses;
The location of the warehouses;
The
size
and
type
of
warehouse
and
materials/
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transportation,
inventory,
and
warehousing
and
small-volume
warehouses.
transportation
However,
as
the
from
number
of
break-bulk
warehouses
in-between
the
larger
number
of
warehouses.
University Q. Paper
Inventory
costsSolution
continuously increase with the increasing
number
of
warehouses
because
the
increased
space
needed.
Transit
inventory
costs
continuously
shorter
transportation
times
between
the
larger
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service
levels,
thus,
decreasing
customer
dissatisfaction costs.
of view
of its
working,
which
is
achieve
minimum
waste
of
space
and
flexibility of arrangement.
Supplying right material to customer as and when
required. Ensure easy movements of the material
handling equipments. Minimize of material handling
requirements. Minimize of material deterioration and
pilferage.
To
assist the
marketing
to
meet
the
objectives,
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FSNFast
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moving.
Slow
moving.
Non-moving,
of materials
through
the warehouse,
REL Chart for the storage of different classes of
materials can be prepared.
While planning the layout and design of the stores, following factors should be
considered:
The
space
for
receipt and
inspection
should be
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handling equipment.
portion,
A pleasing and hygienic environment must be provided
within the warehouse.
provided.
66
Adequate
equipment,
safety
alarms,
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provisions
accident
including
control
and
fire-fighting
prevention
that
together
make
relevant
information
67
Er. H. Manjunath
IMPORTANCE OF LIS:
In the new competitive world success is measure of more
sales, increased profit or a growing customer base. More
important is to get an edge over the competitor. For that
purpose basic business demands to simply get better at
what we do. In the field of logistics, there has always been
an abundance of data. Shipping bills alone make a lot of
information. Gathering the data is important; evaluating the
information,
setting
benchmarks
and
measuring
The
critical
factors
are
the
quality
of
the
68
Er. H. Manjunath
of
decisions
the
professional.
that
can
make
The
a
logisticians
measured
can
difference
take
for
companies.
Example-In the small enterprises like hotel industries the
University Q. Paper Solution
D
A
T
A
I
N
F
O
R
M
A
T
I
O
N
Decision Level
Control Level
Operating Level
D
E
C
I
S
I
O
N
S
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charge
hand,
loading-unloading,
warehouse
of
the
operating
level
by
analyzing
the
70
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quality
information
at
every
point
in
the
organization.
71
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Capacity
plan
Forecast
Logistics
plan
Production
plan
Procurement
plan
Transportation
Purchase
Function
Inventory
Deployment
Inventory
Management
Order
Management
Order
processing
Distributio
n
&
dispatch
Operation Flow
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Performance Measurement:
Performance measurement is necessary to evaluate whether
logistics activities are efficient and effective. Like the pilot
of an aircraft obtains feedback regarding the performance
of the aircraft from the measures displayed on the panel,
logistics
managers
need
performance
measures
for
and
process-related
performance
measures.
Function-based or activity-based and process-based
performance measures.
Internal and external performance
73
The
experience
obtained
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by
managers
from
quality
which
ultimately
affect
customer
satisfaction.
Function-based
measures
are
metrics
that
measure
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historical
performance
and
goal
performance
of
these
measures
on
comparison
of
present
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Time:
Time is an important measure of logistics performance
related to effectiveness. Some of the measures in this
category are order fulfillment lead time and variability,
response time, on-time product shipment/ delivery, and
forecasting/planning cycle time.
Cost:
Cost measures are the basic measures used traditionally for
measuring performance by most firms. The most commonly
utilized logistics cost measures are cost to serve, total
delivered cost, order processing costs, warehouse cost,
freight cost, and cost trend analysis.
Customer service:
These metrics measure the ability of firms to satisfy
customers. Examples of customer service measures are fill
rate, stock outs, on-time delivery, back-order duration, cycle
time components and variability, customer feedback, and
customer satisfaction survey results.
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University Q. Paper Solution
Er. H. Manjunath
Quality:
Quality measures involve measurement of the output of a
process
or
series
of
activities.
Logistics
quality
Asset:
Metrics related to assets like facilities, equipment, and
inventory measure the extent of their utilization. Measures
like inventory turns, inventory accuracy, inventory carrying
costs, obsolete inventory, and inventory days of supply, cashto-cash cycle time return on net assets, and return on
investment are common.
Productivity:
Productivity of a system is the ratio of the output produced
to the resource inputs utilized for producing that output.
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internal
performance
measures
evaluate
the
operations
on
the
customer
and
compare
the
Customer Perception:
Customer
perception
measurement
is
achieved
by
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Competitor Benchmarking:
Competitive benchmarking might simply be defined as the
continuous
measurement
of
the
company's
products,
these
processes
is
then
compared
against
the
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Definition:
This is a technique from TQM process.
Basically this is waste control method. It is not the inventory
control technique, but the result is that. It is organized
approach to introduce in manufacturing cycle.
Timeliness,
Quality,
Productivity,
University Q. Paper Solution
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Flexibility,
Work simplification and Waste reduction.
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Er. H. Manjunath
operating
out
of
five
warehouses
which
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The Law
The square root law determines the extent to which
inventory reduces by reducing the number of locations. The
assumption is that the total customer demand remains the
same.
The square root law states that total safety stock inventories
in a future number of facilities approximates be multiplying
the total amount of inventory at existing facilities by the
square root of number of future facilities divided by number
of facilities.
L
LI
WL =
W2 =
For Example
In a company there are 40 warehouses. These are reduced
to 10 numbers. We use the above mentioned Square Root
Law formula. This gives us the reduction in the inventory by
50% as follows.
Wl = 40 existing Warehouses
W2 = 10 future Warehouses
LI = total units in the existing 40 Warehouses
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Assumptions
We find the assumptions are as follows.
(1)
done.
(2)
(3)
Warehouse.
(4)
Warehouses.
CROSS DUCKING
University
Q. Paper Solution
Cross
Docking
is a relatively new logistics technique used in
from
different
sources
and
economically
functions.
Incoming
shipments
directly
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Protection:
This
involves
contamination,
protection
physical
from
effects
damage,
and
pilferage,
environmental
During
the
product
are
temperature,
humidity,
and
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high
temperatures
by
any
amount
of
packaging.
this
functionality,
efficiencies
of
packaging
materials
helps
handling
in
improving
procedures,
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efficiency.
Improvements
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in
technology
enable
the
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and
"permanently"
improving
the
Benefits of Unitisation:
The reasons given by the different countries for reforming
their systems may be ordered differently or have different
emphases, but the concerns behind these aims tended to
have a lot in common. These commonalities have been
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Containerization
Containerization
(or
containerization)
is
system
of
containers
(known
as
shipping
containers,
ITUs
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Er. H. Manjunath
BIBLIOGRAPHY
Books:
Elements of Logistics Management S. D. Aphale
Elements of Logistics Management Vijay Kumar Bhatia
Websites:
www.yahoo.com
www.
en.wikipedia.org
www.google.com
www.answers.com
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www.businessworld.com
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