CR (2004) Prentice Hall, Inc.Chapter 5Order Processing and Information SystemsThe difference between mediocre and excellent logistics is often the firms information technology capabilities.Dale S. RogersRichard L. DawePatrick Guerra

Order Processing and Information Systems in Planning TriangleCR (2004) Prentice Hall, Inc.PLANNINGORGANIZINGCONTROLLINGTransport StrategyTransport fundamentalsTransport decisionsCustomer service goalsThe productLogistics serviceOrd. proc. & info. sys.Inventory StrategyForecastingInventory decisionsPurchasing and supply scheduling decisionsStorage fundamentalsStorage decisionsLocation StrategyLocation decisionsThe network planning processPLANNINGORGANIZINGCONTROLLINGTransport StrategyTransport fundamentalsTransport decisionsCustomer service goalsThe productLogistics serviceOrd. Proc. & info. sys..Inventory StrategyForecastingInventory decisionsPurchasing and supply scheduling decisionsStorage fundamentalsStorage decisionsLocation StrategyLocation decisionsThe network planning process

Typical Elements of Order ProcessingCR (2004) Prentice Hall, Inc.

Order FillingCR (2004) Prentice Hall, Inc.Processing rules affect order filling speedFirst-received, first-processedShortest processing time firstSpecified priority numberSmaller, less complicated orders firstEarliest promised delivery dateOrders having the least time before promised delivery dateOrder fill rate lower than item fill rate

Order Filling (Contd)CR (2004) Prentice Hall, Inc.Question Suppose that an order contains five items, each having a stocking probability of 93%. What is the probability that the order will be filled complete?Answer

Commerce Through the InternetCR (2004) Prentice Hall, Inc.

Factors AffectingOrder Processing TimeCR (2004) Prentice Hall, Inc.Processing prioritiesParallel versus sequential processingOrder-filling accuracyOrder batchingLot sizingShipment consolidation

The Logistics Information SystemCR (2004) Prentice Hall, Inc.

Order Management System ModuleCR (2004) Prentice Hall, Inc.ElementsStock availabilityCredit checkingInvoicingProduct allocation to customersFulfillment location

Warehouse Management System ModuleCR (2004) Prentice Hall, Inc.ElementsReceivingPutawayInventory managementOrder processing and retrievingShipment preparation

Transportation Management System ModuleCR (2004) Prentice Hall, Inc.ElementsMode selectionFreight consolidationRouting and scheduling shipmentsClaims processingShipment trackingBill payment and auditing

Operating Components of the LISCR (2004) Prentice Hall, Inc.

Exploded View of the LISCR (2004) Prentice Hall, Inc.

Information System ExamplesCR (2004) Prentice Hall, Inc.A retail systemVendor managed inventoryE-commerceA decision support system

LIS for a Large Retailer