Research Reports from the Department of Operations
Document Type
Report
Publication Date
4-1-1980
Abstract
This article identifies three critical problem areas for strategic logistical planning: inventory policy, facility location, and transport selection/routing. These areas are highlighted due to their significant cost implications and economic interdependence. Despite the importance of analyzing the entire logistics system, practical constraints often lead to partial analyses, necessitating the use of sensitivity analysis to assess unexamined impacts. The paper underscores the importance of revisiting logistics strategies, especially in the context of rising interest rates and transportation costs, which have rendered many distribution patterns suboptimal. By integrating guideline principles or conducting definitive analyses, firms can address the substantial cost shifts triggered by events such as the oil embargo and anticipate future disruptions. The ideas presented aim to provide a framework for improved logistics system design, focusing on areas with the greatest potential for cost-effective enhancements.
Keywords
Operations research, Business logistics, Transportation--Cost effectiveness, Inventory control, Facility management, Strategic planning, Cost control
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 477
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Ballou, Ronald H., "Reformulating a Logistics Strategy" (1980). Research Reports from the Department of Operations. 471.
https://commons.case.edu/wsom-ops-reports/471