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Selecting the Right Mode of Transportation• Objectives of a Logistics System: It is to reach

the Right Product, at the Right Place in Right Quantity & Right Time to satisfy Customers Demand

• Example: reaching the product on time is important-neither early nor late (Woolen Garments)

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Selecting the Right Mode of Transportation Logistics Process:

a) Planning (weight, volume, perishability, fragility etc.)

b) Implementing (Contingency/Back up plan)c) Controlling ( Movement of cargo to reach ON

TIME) Example: If goods reach too early at the port (Demurrage Charges) & if arrives late (Customer Dissatisfaction)

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Selecting the Right Mode of Transportation

Critical Elements of a Logistics SystemFollowing Elements decide the nature of the entire logistics system:a) Nature of the Productb) Location of the Manufacturing Plantc) Availability of Infrastructure such as Roads,

Ports, Airports & Material Handling Systems

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Selecting the Right Mode of Transportation

Critical Elements of a Logistics Systemd) Availability of Different Modes of Transportatione) Dealer/Distribution Networks (Location/Availability)f) Government Policies Any Changes in the above points, can change the entire logistics system

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Selecting the Right Mode of Transportation

Exercise 1: Prepare a Logistics Plan for a manufacturer who wants to ship his/her liquid pharmaceutical products from India to Belgium

Exercise 2: Prepare a Chart showing various modes of transportation & their characteristics