By Yukiyasu Togo, William Wartman

The Chairman of Toyota Motor revenues america, Inc. provides the notable heritage of the best, such a lot ecocnomic motor vehicle maker on this planet and its innovative ""just-in-time"" construction approach, followed by means of 16 pages of images.

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Example text

The demand correlation profile (see Figure 2-6) indicates the affinity of demand between individual items and between families of items. Just like a minority of the items in a warehouse make up a majority of the picking activity, certain items in the warehouse tend to be requested together. As an example, pairs of items are ranked based on their frequency of appearing together on orders. We are looking for general patterns. Let’s say we are examining data from a mail order apparel company. The first three digits represent the style of the item (crew neck sweater, V-neck sweater, turtle neck CHAPTER 2 LOGISTICS ACTIVITY PROFILING AND DATA MINING 33 FIGURE 2-6 Demand correlation profile (style-size-color) example.

Though popular, these logistics cost ratios can be misleading. First, there may be large swings in the denominator. Sales, orders, lines, and/or the number of stocking units may increase/decrease dramatically indicating large reductions/increases in the ratios, which may have little to do with improvements in logistics performance or practices. Second, logistics managers and engineers have little or no influence on some of the major elements of the cost equation, including wage rates, occupancy rates, inventory carrying rates, and system capitalization rates.

With these solutions in mind, a truly world-class logistics organization would borrow from and have implemented the best of each. With that in mind, a world-class logistics organization would be characterized by • • • • • • • • • • Extensive use of logistics key performance and financial indicators Supply chain integration Use of integrated logistics information systems Strategic use of logistics service and education providers A sense of urgency to leapfrog to world-class status Strategic use of third-party logistics providers Human-friendly logistics via logistics ergonomics and green logistics Order and discipline Justifiable use of automated storage and handling systems Excellent land and building utilization We hold our clients accountable to these standards, and you will see a variety of applications of these standards written into and illustrated throughout this text.

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