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Cesim Round 3 Report

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Cesim Round 3 Report
CRITICAL APPRAISAL REPORT

Round 3

LOGISTICS & R&D

Ruitong Li ID: 3466663 8th Aug 2011 Team Alpha

1. INTRODUTION This report will cover logistics and R&D section from the simulation, where I will be stating theories of logistics, and logistic transportation concepts, and analyzing my understanding for research and development. I will be stating out my decision for logistics and R&D section in the simulation as well, and point out the reasons why I have made the decisions.

2. CONSIDERATION OF RELEVANT THEORIES & CONCEPT 2.1 Logistics: According to Grund & Vartdal, logistics is “the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods, services and related information from point of origin to point of consumption for the purpose of conforming to customer Requirements’ Council of Logistics Management” (Grund & Vartdal, 2000). It is a part of value chain activity, planed, implemented and controlled in order to meet customers’ needs for goods, services and related information, it is a combination of transport, storage, handling, packaging, distribution processing, distribution, information processing and other basic functions. Logistic Management has four major characters, firstly, to achieve customer satisfaction as the first target, secondly, optimize the enterprise as a whole as the purpose, thirdly, information-centric, fourthly, value efficiency and effectiveness. 2.2 Logistics and Transportation: There are several classifications for logistics and transportation. - Road transport: Mainly use gas trucks and other vehicles, road transport is responsible for close and small quantities of cargo, also where water transport and rail transport difficult to play their advantages. Road transport has several advantages such as strong flexibility, road construction period is short, low investment, easy to fit in local conditions and less demanding for facilities
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