FUNDAMENTALS OF LOGISTICS

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1 LITHUANIAN UNIVERSITY OF AGRICULTURE FACULTY OF ECONOMIC AND MANAGEMENT Department of Business management STUDY SUBJECT DESCRIPTION FUNDAMENTALS OF LOGISTICS Study cycle: BSc Number of ECTS credit points: 6,0 Prerequisites and purpose: Basic knowledge of organization theory, economics, business management, marketing. This lecture is suitable for students of business management branches. Learning outcomes: The course gives a structured knowledge in all the sections of the logistics management. After completing the course students will be acquainted with the theory of the role of business logistics, main description and understanding of overall logistics system and interrelated functional areas, business logistics role in the firm, enviroment influence to business logistics organization and management; pecularities of the logistics in the firm, strategy types of business logistics, vital conflicts of logistics objectives. The student will be able to: describe in detail the various modes of transportation and types of carriers; understand and explain the use of the various documents used in the transportation of goods; understand and explain terms of sale; have an understanding of the process for successful rate negotiation; speak with authority on the basics of warehouse operations; have a general understanding of the principles of inventory management; be familiar with current information technology concepts within the context of a logistics operation. have a clear overall picture about components of the logistics system and they importance; have good knowledge about supply and distribution processes; have enough knowledge about the role of the business logistics in the firm and consumers service to be able to communicate with other specialists; have good knowledge about static and dynamic analysis of business logistics; have good knowledge concerning planning and control of logistics system; to be able to communicate with other specialists.

2 2 Syllabus Theory (44 hours): Origin and definition of business logistics. Logistics system and subsystems. Main description and understanding of logistics function and role in the enterprise. Warehouse logistics. Inventory management decisions in logistics. Transport in logistics system. Influence of logistics to consumer service and enterprise competitiveness Practice classes (16 hours) 1. Surrounding of business logistics (4 hours) 2. Logistics within the firm (6 hours) 3. Static and dynamic analysis of business logistics (6 hours) Private study (58 hours) 1. Individual home work 8 hours 2. Essay 20 hours 3. Preparation for workshop 10 hours 4. Examination 20 hours Essay: Themes of essay taken from separate list in frame of subject contents. It should include description of the theme, the practical examples, conclusions and list of references. Size of project: 8-12 pages (format A4), font 13 pt with the pictures. Teaching and learning methods: Lectures, supported by PowerPoint presentation and slides. Scripts referring to the actual topics are distributed during lectures. Registration for course: Two weeks before the beginning of the course. Methods and timing of assessment: The structure of achievements assessment Importance coefficient Individual home work 0,10 Essay 0,20 Workshop 0,10 Examination 0,60 Written test and oral examination. Registration for examination should be made with lecturer personally or by phone.

3 3 READING REFERENCES MAIN LIST 1. Balou, Ronald H. Business logistics management.- 3-d ed., Prentice Hall, p. 2. Benson D., R. Bugg & G. Whitehead. Transport and Logistics: Elements of Overseas Trade. London: Woodhead Faulkner Publishers, Boversox D., Closs D. Logistical management.- McGraw- Hill, p. 4. Cooper J. Logistics and distribution planning.- 2 ed., Kogan Page, p. 5. Coyle J.J., Bardi E.J. The Management of Business Logistics. New York: West Publishing Company, p. 6. Christoper M. Logistics and supply chain management.- Prentice Hall, p. 7. Lambert, Douglas M. & James R. Stock. Strategic Logistics Management. 3rd Edition. Homewood: Irwin, Stock, J.R.; Lambert, D.R. Strategic Logistics Management. Boston: Mc Graw-Hill, p. 9. Taylor D. Global Cases in Logistics and Supply Chain Management. London: International Thomson Business Press, SUPPLEMENTARY LIST 1. Baily P., Farmer D., Jessop D., Jones D. Purchasing principles and management.- 8 ed., Pitman Publishing, p. 2. Boversox D., Closs D. Logistical management, the Integrated supply chain process.- McGraw- Hill, New York Christopher M. Logistics and supply chain management.- Pitman Publishing, p. 4. J. Cooper, M. Browne & M. Peters. European Logistics: Markets, Management and Strategy, Johnson J.C., Wood D.F. Contemporary logistics.- 6 ed., Prentice Hall, p. 6. Lambert D., Stock J., Elram L. Fundamentals of logistics management.- McGraw- Hill, p. Study programme designed by Assoc. prof. dr. Audrius Gargasas Department of Business Organization, Faculty of Economics and Management, Lithuanian University of Agriculture Universiteto 10, Akademija, LT Kauno raj., Lithuania Phone (mob.) Fax.: audrius.gargasas@lzuu.lt Signature:.

4 4 ANNEX CONTENT DESCRIPTION LESSONS (44 hours) 1. Origin and definition of business logistics. (15 %) Genesis of essential logistics. Evolution of logistics. Definitions. Terminology. 2. Logistics system and subsystems. (10 %) Logistics systems in the enterprise. The functions of the logistics systems Supply, production and distribution logistics subsystems. Spheres and function of logistics activity. 3. Main description and understanding of logistics function and role in the enterprise. (20 %) Changing environment and development of business logistics. Product line expansion. Conceptualization of logistics activity. Changing priorities and patterns. Main material flows, their directions and fundamentals of their organization in the enterprise. Logistics function and operations. Planning of material flow. 4. Warehouse logistics. (10 %) Duties of logistics in warehouse. Cargo acceptations, reception and storing. Flow of the goods in warehouse. Selection of the optimal storing system. Organization of material flow in the warehouses. Warehouse place and type selection problems. 5. Inventory management decisions in logistics. (15 %) Stock importance for business firm. Stock planning and reordering. Inventory management models. Supply chain and supply organization problems. 6. Transport in logistics system. (20 %) Main concepts and operations. Planning of material flow.

5 5 Types of transports and their characteristics. Container and pallets Basic elements of transport mode selection and control. 7. Influence of logistics to consumer service and enterprise competitiveness (10 %) Types of logistics consumer services. Logistics service and costs. Consumer order processing and information handling. Logistics costs and enterprise competitiveness relations. The relationship between customer satisfaction and customer loyalty. The relationship between switching costs and customer loyalty. PRACTICE CLASSES (16 hours) 1. Surrounding of business logistics. (4 hours) The logistics system's relations to its environment, to other functions in the enterprise, to other enterprises, and to the society as a whole. 2. Logistics within the firm. (6 hours) Situation analysis studies of existing national and international logistics system. 3. Static and dynamic analysis of business logistics. (6 hours) Static and dynamic analysis of logistics system within the enterprise. Discussion on practical aspects of logistics systems, types and logistics services. Presentation of practical examples of business logistics.