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Although warehouses and distribution centers appear to be interchangeable terms, they do have different characteristics. A warehouse is a facility where goods are stored for periods of time, while a distribution center tends to store goods for short periods of time as orders are fulfilled, commonly daily. On the above

Since logistics involves the range of activities related to the production and distribution of goods for consumption, it is composed of two separate but integrated branches; materials management and physical distribution. Material management involves all the activities related to the production of parts and finished goods, including their packaging and

The implementation of logistics structures is the outcome of decisions related to the usage of production, transport, and distribution capabilities. Since the requirements of each supply chain are different, the decisions about how to use these capabilities will result in different strategies:

The purpose of supply chains is to add value to production and distribution. Depending upon the markets and the value chains they are servicing, supply chains can be differentiated according to criteria such as costs, time reliability, and risk. Efficient logistics contributes to added-value in four major interrelated ways: Production

Logistics aims at the fulfillment of four basic requirements: All operations related to logistics aim to ensure that demand is satisfied (fulfilling goals), irrespective if it is a part made available to a manufacturer or a good present on a store shelf. There are three major categories of logistics operations:

Source: Adapted from Knox and Agnew (1998) The Geography of the World Economy, Third Edition, London: Arnold. Global production networks can be classified into two categories: Multidomestic. Concerns operations where each market is serviced independently. It can relate to simple products that are easy to replicate but costly to transport

Sources: United States Geological Survey, BP Statistical Review of World Energy, Food and Agriculture Organization of the United Nations, International Monetary Fund, United States Department of Agriculture. The growth of China as an export-oriented economy has been accompanied by substantial growth in the consumption and import of key commodities. The

Source: adapted from UNIDO (2000) Structure of Production Costs in Footwear Manufacture. Manufacturing costs are usually a measurement for acquiring, transforming, and distributing materials, parts, or finished goods. They commonly involve a monetary exchange (or monetary equivalence) but also include the amount of energy and time being allocated to the

In a Fordist production system, supply chains are often discontinuous and subject to delays. Links between different functions imply the accumulation of inventory (raw materials, parts, and manufactured goods) before their usage (processing, manufacturing, and distribution). The high output levels of an assembly line require warehousing of all required parts

A chain is as strong as its weakest link. This is of particular relevance for a cold chain that preserves the integrity of a product by maintaining its temperature within a specific range (2 to 8 degrees Celcius is common). Many products, such as food, pharmaceuticals, and some chemicals, can