Planning and management of logistic cycle

We are considering planning and managing of logistic cycle, its impact on the content of the main processes that comprise the cycle to implement the order for the supply of material resources for industrial consumption, as well as its practical use, effectiveness, and prospects.

This research paper is made on the basis of the information, received from textbooks and scientific literature of domestic and foreign authors, as well as from other sources. The main methods, used in this work are as follows: method of system analysis, method of the theory of operations’ research, prognostics. Application of these methods allows forecasting material flows, creating the integrated management systems and controlling their movements, developing systems of logistic service, to optimize supply stock and solve a number of other tasks.

A logistic approach to form a modern system of logistics will save time, reduce costs for the purchase of material resources, their delivery and storage.

In modern conditions of the market economy, the considered time parameters of the logistic chain are essential for manufacturing enterprises because their records significantly increase the efficiency of the logistical system.

Logistics is equipped with a special complex of economic and mathematical models, the main feature of which is the adaptability, i.e. ability to solve complex optimization problems in the operational mode and in the process of the management of material flows. The primary role of these models in a market economy is to identify quickly points of compromise.

Dynamics to functional cycles gives the necessity to align resource needs «input» and «output». «Input» functional cycle is an order that specifies requirements for a product or service. Logistical system, which is able to complete fully the order of any size, as a rule, needs in the «combined» functional cycles, including different transactions and operations at different stages. The «output» of the system – expected results to perform the logistics operations. We can talk about the effectiveness of the functional cycle structure due to the operational needs.

The effectiveness of the functional cycle is directly related to the resource cost. The efficiency and productivity of the functional cycles are the key indicators in logistical management.

Functional cycles are forming a single supply chain and link its participants. Thus, the functional cycle is the main object of the design and operational management in logistical systems, its structure is the basis for making the integrated logistics.

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