Springer Texts in Business and Economics

Harald Gleissner
J. Christian Femerling

Logistics
Basics – Exercises – Case Studies
Springer Texts in Business and Economics

For further volumes:

http://www.springer.com/series/10099
ThiS is a FM Blank Page
Harald Gleissner • J. Christian Femerling

Logistics
Basics – Exercises – Case Studies
Harald Gleissner J. Christian Femerling
Berlin School of Economics and Law Investa Holding GmbH
Berlin Eschborn
Germany Germany

Translation from the German language edition: Logistik by Harald Gleißner and J. Christian
Femerling Copyright # 2012 Springer Gabler Springer Gabler is a part of Springer Science +
Business Media All Rights Reserved

ISSN 2192-4333 ISSN 2192-4341 (electronic)

ISBN 978-3-319-01768-6 ISBN 978-3-319-01769-3 (eBook)
DOI 10.1007/978-3-319-01769-3
Springer Cham Heidelberg New York Dordrecht London

Library of Congress Control Number: 2013956625

# Springer International Publishing Switzerland 2013

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Preface

Globalization and Logistics are closely connected, just as Globalization and Aca-
demic Lecturing are. This poses new challenges in studying Logistics and makes
textbooks in English an important tool in college and university curricula that deal
with transportation, logistics, and supply chain management.
The idea of offering a textbook in two languages was conceived after the success
of the first volume of Logistik: Grundlagen – Übungen – Fallbeispiele, published in
2008. At that time, it was an early textbook primarily intended for students enrolled
in bachelor degree programs in Logistics, and was extremely well received among
academics and industry experts. Based on their own teaching experience, the
authors later decided to prepare an English edition of the book to support interna-
tional academic environments.
In 2012, Gleissner and Femerling published a second edited volume in German,
expanded by two additional chapters, “Logistics Infrastructure” and “Logistics and
Finance,” which are also included in this English edition. In comparison to the
German edition, the bibliography of this edition contains additional references
concerning relevant US and British literature.
The goal of the book is to present basic logistics concepts and principles in a
format that is useful for students as well as practitioners dealing with logistic issues
for the first time.
The chapters therefore will help readers by providing:
¢ Learning objectives at the beginning of each chapter
¢ In-depth case studies
¢ Corporate applications in the industry
¢ End-of-chapter questions
¢ Chapter-specific references
¢ Chapter-specific recommendations for further reading
For application and further information, readers are advised to consult Gleissner
and Möller: Case Studies in Logistics from 2011.
We owe considerable thanks to all companies involved for their cooperation in
providing insights into their business in the form of examples and case studies. We
also wish to thank our publisher for encouraging us to pen the English edition of this
book. Our special thanks for finishing the book in English go to Patrick Speckamp

v
vi Preface

(London, UK), Ralph G. Kauffman (Houston, Texas, US), Vin Nguyen Truc (Perth,
Australia), Claudia Wittmann (Berlin, Germany), and last but not least Anja
Foerster and Stefan Baier (Berlin, Germany) for much-appreciated editing work.
It was a pleasure working with all of them.

Berlin, Germany Harald A. Gleissner und J. Christian Femerling

May 2013
Abbreviations

AG Aktiengesellschaft ¼ Public Limited Company (PLC)

AGV Automated Guided Vehicle Systems
ANSI American National Standards Institute
APS Advanced Planning and Scheduling Systems
ARA Antwerp-Rotterdam-Amsterdam Range
B2B Business to Business
B2C Business to Customer
BASF Badische Anilin- & Soda-Fabrik
BMG Baugruppen- und Modulfertigung GmbH
BMW Bayrische Motorenwerke
BSC Balanced Score Card
BSHG Bosch und Siemens Hausgeräte GmbH
bt Billion Ton
CD Cross Docking
CEN Comité Européen Normalisation
CEP Courier, Express, Parcel
CIF Cost, Insurance, Freight
CMI Co Managed Inventory
CPFR Collaborative Planning Forecasting Replenishment
CRM Customer Relationship Management
CRP Continuous Replenishment Programs
CW Central Warehouse
DB Deutsche Bahn
DCF Discounted Cash Flow
DCM Demand Chain Management
DDP Delivered Duty Paid
DIN e. V. German Institute for Standardization
DIY Do It Yourself
DOS Days of Stock
DP Desktop Purchasing
DPWN Deutsche Post World Net
DTD Document Type Definition
DW Distribution Warehouse
E-Commerce Electronic Commerce

vii
viii Abbreviations

E-Procurement Electronic Procurement

E-Purchasing Electronic Purchasing
E-Sales Electronic Sales
EAN European Article Number
ECR Efficient Consumer Response
EDC European Distribution Centers
EDI Electronic Data Interchange
EDIFACT Electronic Data Interchange for Administration, Commerce and
Transport
EDP Electronic Data Processing
ELA European Logistics Association
EPC Electronic Product Code
ERMTS European Railway Transport Management System
ERP Enterprise Resource Planning System
EU European Union
EWI European Economic Institute
EXW EX Works
FeFo First EXPIRED-FIRST OUT
FiFo First In-First Out
FOB Free On Board
FRG Federal Republic of Germany
ft Feet
FUL Full Truck Load transport
GDP Gross Domestic Product
GLN Global Location Number
Glonass Globalnaja Nawigazionnaja Sputnikowaja Sistema
GmbH Gesellschaft mit beschränkter Haftung ¼ Limited Company
(Ltd)
GPS Global Positioning System
GRAI Global Returnable Asset Identifier
GSM Global System for Mobile Communication
GSM-R Global System for Mobile Communication Railways
GTIN Global Trade Item Number
ha Hektare
HGB Handelsgesetzbuch¼ German Commercial Code
HP Hewlett Packard
HR Human Resource
IATA International Air Transport Association
INCOTERMS International Commercial Terms
ICAO International Civil Aviation Organization
ID Identification
IP Internet Protocol
ISDN Integrated Service Digital Network
ISO International Standards Organization
IT Information Technology
Abbreviations ix

JIS Just in Sequence

JIT Just in Time
Kg Kilogram
Km Kilometer
KPI Key Performance Indicator
LxWxH Length  Wide  High
LANs Local Area Networks
LiFo Last In-First Out
LPG Liquid Petroleum Gas
LTL Less Than Truck Load Transport
m Meter
MFS Material Flow System
MRP I Material Requirements Planning
MRP II Manufacturing Resource Planning
NVOCC Non-Vessel-Operating Common Carriers
OBU On-Board (Computer) Unit
OCR Optical Character Reading
ODETTE Organization for Data Exchange by Tele Transmission in Europe
OEM Original Equipment Manufacturer
p.a. per anno
PC Personal Computer
PLC Programmable Logic Controller
PLU Product-Lookup
pm Past
PPS Production Planning Systems
PU Polyurethane
PW Production Warehouse
QR Quick Response
R&D Research & Development
RDT Remote Data Transmission
RFID Radio Frequency Identification
ROI Return on Investment
RoRo Roll-On/Roll-Off
RW Regional Warehouse
SCE Supply Chain Execution
SCD Supply Chain Design
SCM Supply Chain Management
SCP Supply Chain Planning
SEDAS Standardregelungen einheitlicher Datenaustauschsysteme –
Standard Regulations of Uniform Data Exchange Systems
SPC Special Purpose Company
SSCC Serial Shipping Container Code
t Ton
x Abbreviations

TEU Twenty Foot Equivalent Unit

TFL Thiel Fashion Lifestyle
Tkm Ton kilometer
TÜV Technischer Überwachungsverein
TV Television
UMTS Universal Mobile Telecommunication System
UPC Universal Product Code
US United States
USA United States of America
VDA German Association of the Automotive Industry
VMI Vendor Managed Inventory
VPN Virtual Private Network
VW Volkswagen
WANs Wide Area Networks
WC3 World Wide Web Consortium for Standardization of www-
Technologies
WMS Warehouse Management System
WOTIF Work On Time In Full
WTO World Trade Organization
XML Extensible Markup Language
XSL Extensible Style Sheet Language
Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 The Principles of Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.1 Definitions and Significance of Logistics . . . . . . . . . . . . . . . . . . . 4
2.2 Logistical System of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3 Agents and Elements of Logistics . . . . . . . . . . . . . . . . . . . . . . . . 10
2.4 Distinction between Procurement Logistics, Production Logistics
and Distribution Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.5 Service Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3 Logistics Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.1 Logistics and Corporate Strategy . . . . . . . . . . . . . . . . . . . . . . . . 20
3.2 Supply Chains and Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.3 Management of Logistics Systems . . . . . . . . . . . . . . . . . . . . . . . 24
3.3.1 Basic Management Systems . . . . . . . . . . . . . . . . . . . . . . 24
3.3.2 System Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.4 Organizational Variables in Logistics Systems . . . . . . . . . . . . . . 26
3.4.1 Organizational and Operational Structures of Logistics . . . 26
3.4.2 Inter-Organizational Optimization Through Supply Chain
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.4.3 Intra-Organizational Behavior and Changed Staff
Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
4 Logistical Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
4.1 Basic Terminology, Types and Functions . . . . . . . . . . . . . . . . . . 38
4.2 Transport Infrastructure and Suprastructure . . . . . . . . . . . . . . . . . 39
4.2.1 Transport Routes and Transport Networks . . . . . . . . . . . . 39
4.2.2 Airports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
4.2.3 Sea Ports and Inland Ports . . . . . . . . . . . . . . . . . . . . . . . . 41
4.2.4 Rail Stations and Railroad Systems . . . . . . . . . . . . . . . . . 42
4.2.5 Terminals and Transshipment Facilities . . . . . . . . . . . . . . 43

xi
xii Contents

4.2.6Logistics Real Estate, Logistics Parks,

and Freight Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
4.3 Information Infrastructure and Communication Infrastructure . . . 49
4.3.1 Telecommunication Infrastructure . . . . . . . . . . . . . . . . . . 49
4.3.2 Satellite Systems and Satellite Navigation . . . . . . . . . . . . 51
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5 Transport Systems and Logistics Services . . . . . . . . . . . . . . . . . . . . 53
5.1 Transport Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5.2 Significance and Development . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5.3 Modes of Transport and Transport Technologies . . . . . . . . . . . . . 56
5.3.1 Transport Value and Transport Affinity . . . . . . . . . . . . . . 56
5.3.2 Road Freight Transport . . . . . . . . . . . . . . . . . . . . . . . . . . 58
5.3.3 Rail Freight Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
5.3.4 Sea Freight Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
5.3.5 Inland Waterway Transport . . . . . . . . . . . . . . . . . . . . . . . 69
5.3.6 Air Freight Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.3.7 Pipeline Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
5.4 Transport Systems and Means of Transport . . . . . . . . . . . . . . . . . 78
5.4.1 Transport Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
5.4.2 Means of Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
5.5 Logistics Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
5.5.1 Carriers and Forwarders . . . . . . . . . . . . . . . . . . . . . . . . . 87
5.5.2 Courier, Express, Parcel and Mail Service Providers . . . . . 89
5.5.3 Systems Service Providers and Contract
Logistics Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
6 Warehousing, Handling, and Picking Systems . . . . . . . . . . . . . . . . . 95
6.1 Warehousing Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
6.2 Storage Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
6.2.1 Static Storage Systems . . . . . . . . . . . . . . . . . . . . . . . . . . 98
6.2.2 Dynamic Storage Systems . . . . . . . . . . . . . . . . . . . . . . . . 101
6.3 Conveyors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
6.3.1 Discontinuous Conveyors . . . . . . . . . . . . . . . . . . . . . . . . 106
6.3.2 Continuous Conveyors . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.3.3 Sorters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.4 Packages, Loading Units, and Load Carriers . . . . . . . . . . . . . . . . 119
6.5 Picking and Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
6.5.1 Picking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
6.5.2 Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
6.6 Warehouse Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Contents xiii

7 Inventory, Stock and Provisioning Management . . . . . . . . . . . . . . . 139

7.1 Inventory Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
7.1.1 Contents and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . 140
7.1.2 Determination of Requirements . . . . . . . . . . . . . . . . . . . . 140
7.1.3 Functions of Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 141
7.1.4 Inventory Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
7.2 Inventory Planning and Management . . . . . . . . . . . . . . . . . . . . . 145
7.2.1 Disposition Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . 145
7.2.2 Warehousing Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . 146
7.2.3 Safety Stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
7.3 Provisioning of Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
7.3.1 Individual Procurement and Bulk Procurement . . . . . . . . . 149
7.3.2 Production Synchronized Provisioning . . . . . . . . . . . . . . . 149
7.3.3 Just-In-Time Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . 149
7.3.4 Goods Receiving Functions . . . . . . . . . . . . . . . . . . . . . . . 151
7.4 Transport, Warehouse, and Location Concepts . . . . . . . . . . . . . . 152
7.4.1 Regional Freight Carrier Concept . . . . . . . . . . . . . . . . . . 152
7.4.2 External Provisioning Warehouse . . . . . . . . . . . . . . . . . . 153
7.4.3 Supplier Settlements and Supplier Parks . . . . . . . . . . . . . 154
7.5 Cooperation Concepts of Inventory and Provisioning
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
7.5.1 Efficient Consumer Response . . . . . . . . . . . . . . . . . . . . . 155
7.5.2 Vendor Managed Inventory . . . . . . . . . . . . . . . . . . . . . . . 157
7.5.3 Collaborative Planning, Forecasting and Replenishment . . . 158
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
8 Logistics Network Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
8.1 Strategic Network Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
8.2 Overview Logistics Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
8.2.1 Representation of Logistics Networks . . . . . . . . . . . . . . . 163
8.2.2 Domains of Decision Making in the Network Design . . . . 164
8.2.3 Structures of Logistics Networks . . . . . . . . . . . . . . . . . . . 164
8.3 Warehouse Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
8.3.1 Warehouse Network Planning . . . . . . . . . . . . . . . . . . . . . 165
8.3.2 Degree of Centralization . . . . . . . . . . . . . . . . . . . . . . . . . 166
8.3.3 Capacity Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
8.3.4 Layout Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
8.4 Transport Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
8.4.1 Transport Network Planning . . . . . . . . . . . . . . . . . . . . . . 171
8.4.2 Transport Network Configurations . . . . . . . . . . . . . . . . . . 172
8.4.3 Transport Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . 176
8.4.4 Transport Logistics Concepts . . . . . . . . . . . . . . . . . . . . . 182
8.5 Outsourcing, Tendering and Placing of Transport and Logistics
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
xiv Contents

9 IT in Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
9.1 Electronic Data Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
9.1.1 Communication Standards . . . . . . . . . . . . . . . . . . . . . . . . 190
9.1.2 Identification Standards . . . . . . . . . . . . . . . . . . . . . . . . . . 197
9.2 Identification Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
9.3 Stock Management and Warehouse Control . . . . . . . . . . . . . . . . 204
9.3.1 Classification of IT in the Fields of Inventory
and Warehousing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
9.3.2 ERP Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
9.3.3 Warehouse Management Systems . . . . . . . . . . . . . . . . . . 207
9.3.4 Material Flow Systems and Lower-Level Control
Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
9.4 Transport Planning and Controlling . . . . . . . . . . . . . . . . . . . . . . 209
9.5 Strategic and Operative Planning Systems . . . . . . . . . . . . . . . . . . 212
9.5.1 Site and Network Planning . . . . . . . . . . . . . . . . . . . . . . . 212
9.5.2 E-procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
9.5.3 Enterprise Resource Planning . . . . . . . . . . . . . . . . . . . . . 214
9.5.4 Supply Chain Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
10 Investment and Financing in Logistics . . . . . . . . . . . . . . . . . . . . . . 225
10.1 The Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
10.1.1 Managing Capital Requirement, Origin of Capital
and Capital Utilization . . . . . . . . . . . . . . . . . . . . . . . . 226
10.1.2 Managing Fixed Assets and Current Assets . . . . . . . . . 228
10.1.3 Financial Supply Chain Concept . . . . . . . . . . . . . . . . 230
10.2 Financing Deliveries of Goods and Inventory . . . . . . . . . . . . . 233
10.2.1 Overdraft Facilities and Supplier’s Credit . . . . . . . . . . 233
10.2.2 Factoring, Forfaiting, Cash Forwarding . . . . . . . . . . . 234
10.2.3 Inventory Management and Off-Balance
Sheet Inventory Financing . . . . . . . . . . . . . . . . . . . . . 236
10.3 Financing of Logistics Real Estate . . . . . . . . . . . . . . . . . . . . . 237
10.3.1 Self Financing and External Financing . . . . . . . . . . . . 237
10.3.2 Rent and Leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
10.4 Financing of Logistics Movables . . . . . . . . . . . . . . . . . . . . . . 239
10.4.1 Internal and External Financing . . . . . . . . . . . . . . . . . 239
10.4.2 Leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
10.4.3 Build-Operate-Transfer Models . . . . . . . . . . . . . . . . . 241
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
11 Logistics Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
11.1 Conceptual Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
11.2 Logistical Costs and Performance Accounting . . . . . . . . . . . . . 249
11.3 Key Figure Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
Contents xv

11.4 Further Controlling Concepts . . . . . . . . . . . . . . . . . . . . . . . . . 261

11.4.1 Process Cost Accounting . . . . . . . . . . . . . . . . . . . . . . 261
11.4.2 Supply Chain Controlling . . . . . . . . . . . . . . . . . . . . . 262
11.5 Costs and Cost Effects; Performance and Performance
Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
12 Business Models and Industry Solutions . . . . . . . . . . . . . . . . . . . . . 267
12.1 Business Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
12.2 Logistical Industry Solutions . . . . . . . . . . . . . . . . . . . . . . . . . 268
12.2.1 Industry Solutions in Manufacturing . . . . . . . . . . . . . . 268
12.2.2 Industry Solutions in Trade . . . . . . . . . . . . . . . . . . . . 273
12.2.3 Industry Solutions in the Service Sector . . . . . . . . . . . 276
12.2.4 Industry Solutions in E-Business . . . . . . . . . . . . . . . . 277
12.3 International and Global Business Models . . . . . . . . . . . . . . . . 279
12.4 Development of Logistics Services Offers . . . . . . . . . . . . . . . . 281
Additional Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
13 Outline Solutions to Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . 285
13.1 Solution to Case Study 6-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
13.2 Solution to Case Study 6-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
13.3 Solution to Case Study 6-6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
13.4 Solution to Case Study 8-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
13.5 Solution to Case Study 8-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
13.5.1 Selective Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 286
13.5.2 Regional Warehouses . . . . . . . . . . . . . . . . . . . . . . . . 287
13.5.3 C Articles Management . . . . . . . . . . . . . . . . . . . . . . . 287
13.5.4 Direct Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
13.6 Solution to Case Study 11-2 . . . . . . . . . . . . . . . . . . . . . . . . . . 289
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
ThiS is a FM Blank Page
List of Figures

Fig. 1.1 Logistics and its branches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Fig. 2.1 Elements of logistics tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Fig. 2.2 Logistical problems and solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Fig. 2.3 Changes in the understanding of logistics . . . . . . . . . . . . . . . . . . . . . . . . 6
Fig. 2.4 System of logistical services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Fig. 2.5 Elements of logistics . . . .. . .. . .. . .. . . .. . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . 11
Fig. 2.6 Functional distinctions of logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Fig. 2.7 Differentiation of business enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Fig. 2.8 Determinants of the logistical service level . . . . . . . . . . . . . . . . . . . . . . 15
Fig. 3.1 Model of a logistics chain (supply chain) . . . . . . . . . . . . . . . . . . . . . . . . 21
Fig. 3.2 Model of a complex logistics network . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Fig. 3.3 Model of a detergent supply chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Fig. 3.4 Determining elements of logistics organization structures . . . . . . 27
Fig. 3.5 Organization and supply chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Fig. 3.6 Logistical organization models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Fig. 4.1 Schematic outline of Berlin’s airport ‘Willy Brandt’ . . . . .. . . . .. . 41
Fig. 4.2 Rail infrastructure .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . 43
Fig. 4.3 Layout of a container terminal . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. 45
Fig. 4.4 Schematic layout of a door-to-door logistics chain . . . . . . . . . . . . . . 46
Fig. 5.1 Tonnage transported according to transport modes
in Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Fig. 5.2 Tonne-kilometer performance according to modes of
transport in Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Fig. 5.3 Tonne-kilometer performance according to market
share in 2011 in Germany . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . 58
Fig. 5.4 Distinguishing characteristics of road freight transport . . . . . . . . . 59
Fig. 5.5 Market players in rail freight transport . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Fig. 5.6 Group structure of the Deutsche Bahn AG . . . . . . . . . . . . . . . . . . . . . . . 62
Fig. 5.7 Rail freight transport products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Fig. 5.8 Railroad transport network of BASF Schwarzheide GmbH . . . . 65
Fig. 5.9 Most important forms of inland waterway transport . . . . . . . . . . . . 70
Fig. 5.10 Network of North European inland waterways . . . . . . . . . . . . . . . . . . 72
Fig. 5.11 Pipeline network and refineries in Germany . . . . . . . . . . . . . . . . . . . . . 77
Fig. 5.12 Pre-carriage, main carriage and on-carriage . . . . . . . . . . . . . . . . . . . . . . 78

xvii
xviii List of Figures

Fig. 5.13 Setup of transport chains .. . . . .. . . . .. . . . .. . . . .. . . . . .. . . . .. . . . .. . . . . 79

Fig. 5.14 Transport means in road freight transport . . . . . . . . . . . . . . . . . . . . . . . 81
Fig. 5.15 Railway wagons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Fig. 5.16 Ship generations in container transport . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Fig. 5.17 Transport means of inland waterway transport . . . . . . . . . . . . . . . . . 84
Fig. 5.18 Airplane types .. . .. . .. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . .. . . 85
Fig. 5.19 Air freight containers . .. . . .. . .. . . .. . . .. . .. . . .. . . .. . .. . . .. . . .. . .. . . . 86
Fig. 5.20 Loading profiles of all-cargo planes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Fig. 5.21 Competition matrix: forwarder/integrator . . . . . . . . . . . . . . . . . . . . . . . 90
Fig. 5.22 Air and road network of TNT Express . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Fig. 6.1 Block storage figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Fig. 6.2 Pallet rack . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Fig. 6.3 Drive-in rack and drive-through rack . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Fig. 6.4 Bay shelf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Fig. 6.5 Cantilever shelf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Fig. 6.6 Live storage shelf . . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . 102
Fig. 6.7 Push-back shelf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Fig. 6.8 Vertical carousel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Fig. 6.9 Horizontal carousel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Fig. 6.10 Slide shelves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Fig. 6.11 Manual lift truck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Fig. 6.12 Lift pallet truck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Fig. 6.13 Counterbalance forklift or frontload truck . . . . . . . . . . . . . . . . . . . . . . 107
Fig. 6.14 Reach truck .. . .. . .. . .. . .. . .. . .. . .. . . .. . .. . .. . .. . .. . .. . .. . .. . . .. . .. . . 108
Fig. 6.15 Narrow aisle truck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Fig. 6.16 Stacker crane . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 109
Fig. 6.17 Automated Guided Vehicle (AGV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Fig. 6.18 Comparison of common conveyors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Fig. 6.19 Roller conveyor . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Fig. 6.20 Chain conveyor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Fig. 6.21 Belt conveyor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Fig. 6.22 Circular conveyor .. . .. . .. . .. . . .. . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . .. . . . 114
Fig. 6.23 Electric pallet ground conveyor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Fig. 6.24 Floor-mounted drag chain conveyor at the Dachser
logistics center in Berlin/Brandenburg . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Fig. 6.25 Tilt-tray sorter .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . . 117
Fig. 6.26 Crossbelt sorter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Fig. 6.27 Sliding sorter or slat sorter .. . .. . . .. . .. . .. . .. . . .. . .. . .. . .. . . .. . .. . . 118
Fig. 6.28 Transition from feeding belt to tilt-tray sorter . . . . . . . . . . . . . . . . . . 119
Fig. 6.29 Euro pallet .. . . . .. . . . .. . . . .. . . .. . . . .. . . . .. . . . .. . . .. . . . .. . . . .. . . . .. . . . 121
Fig. 6.30 Wire-mesh pallet .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . . 121
Fig. 6.31 Single-stage, one-dimensional picking with manual
withdrawal and centralized handover . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Fig. 6.32 Static provisioning, one-dimensional movement,
manual withdrawal and decentralized handover . . . . . . . . . . . . . . . . 125
List of Figures xix

Fig. 6.33 Static provisioning, two-dimensional movement, manual

withdrawal and centralized handover . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Fig. 6.34 Dynamic provisioning, one-dimensional movement,
manual withdrawal and decentralized handover . . . . . . . . . . . . . . . . 127
Fig. 6.35 Loading and un-loading of trucks with and without the
use of ramps . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . .. . . . .. . . . 129
Fig. 6.36 Gate system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Fig. 6.37 Possible goods receiving (ingoing) – goods issuing
(outgoing) layouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Fig. 6.38 Warehouse layout Gebr. Heinemann, KG . . . . . . . . . . . . . . . . . . . . . . . 133
Fig. 7.1 Distinction of types of material demand . . . . . . . . . . . . . . . . . . . . . . . . 141
Fig. 7.2 Warehousing strategies and order policies of the t-q policy . . . 146
Fig. 7.3 Warehousing strategies and order policies of the t-S policy . . . . 147
Fig. 7.4 Warehousing strategies and order policies of the s-q policy . . . . 147
Fig. 7.5 Warehousing strategies and order policies of the s-S policy . . . . 148
Fig. 7.6 Factory premises at smart France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Fig. 7.7 ECR overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Fig. 7.8 CPFR process model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Fig. 8.1 Goal conflict in logistics performance . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Fig. 8.2 Representation of a network for the flow of goods . . . . . . . . . . . . . 165
Fig. 8.3 Number and degree of centralization of distribution systems . . . 166
Fig. 8.4 Concept of selective warehousing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Fig. 8.5 Logistics network BSHG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Fig. 8.6 Forms of net structures . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . 172
Fig. 8.7 Net configuration: grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Fig. 8.8 Net configuration: hub-and-spoke . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . 173
Fig. 8.9 Combinations of grid and hub-and-spoke nets . . . . . . . . . . . . . . . . . . 174
Fig. 8.10 Load and consignee acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Fig. 8.11 Ordinary delivery versus delivery with multi-pick concepts . . . . 178
Fig. 8.12 The cross-docking principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Fig. 8.13 Cross-docking variants in the METRO Group Logistics
system .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. . 181
Fig. 8.14 Existing distribution structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
Fig. 9.1 The EDI principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Fig. 9.2 Information flow in logistics with EANCOM® standards . . . . . 194
Fig. 9.3 Information flow in the distribution of goods with
EANCOM® standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Fig. 9.4 Mechanical reading in automatic data acquisition . . . . . . . . . . . . . 199
Fig. 9.5 Characters for optical recognition . . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . . 199
Fig. 9.6 EAN barcodes for individual items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Fig. 9.7 EAN-128 as SSCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
Fig. 9.8 EAN-128 transport label – concrete example of SSCC . . . . . . . . 201
Fig. 9.9 2-D codes for postage and train tickets . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Fig. 9.10 Logic of the RFID data flow .. . .. . .. .. . .. .. . .. . .. .. . .. .. . .. . .. .. . . 203
Fig. 9.11 Transponder (smart label) .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . . 203