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Qwestrum Engineering360 · Industrial & Production · Supply Chain Management

Logistics and Distribution

Logistics and distribution manage movement and delivery performance from plant to final customer.
Exam tip: keep SI units consistent end-to-end, write the governing relation symbolically before substituting, and sanity-check magnitude and sign.

Key formulas & points

Skim these first — then read the full notes below.

  • 3PL vs in-house logistics
  • Incoterms define buyer-seller risk transfer
  • Last-mile cost highest per km

Topic details

Introduction

Distribution design affects service quality and working capital. Chase operations content and Buffa supply strategy both treat logistics as a competitiveness driver.

Key relations & formulas

Formulas (Indian textbook notation)

  • vehiclerouting:minimisedistancecostsubjecttocapacityvehicle routing: minimise \frac{distance}{cost} subject to capacity

Formulas (Indian textbook notation)

  • cross−dock:minimisestoragedwelltimecross-dock: minimise storage dwell time

Formulas (Indian textbook notation)

  • fillrate=linesshippedcompletelinesorderedfill rate = lines shipped \frac{complete}{lines} ordered

Notation and sign conventions

Relation 1 —
vehiclerouting:minimisedistancecostsubjecttocapacityvehicle routing: minimise \frac{distance}{cost} subject to capacity

Formulas (Indian textbook notation)

  • vehiclerouting:minimisedistancecostsubjecttocapacityvehicle routing: minimise \frac{distance}{cost} subject to capacity
Write this relation with symbols exactly as in Sunil Chopra Scm — Standard reference before substituting numbers. Examiners award partial marks for a correct setup even when arithmetic slips.
Relation 2 —
cross−dock:minimisestoragedwelltimecross-dock: minimise storage dwell time

Formulas (Indian textbook notation)

  • cross−dock:minimisestoragedwelltimecross-dock: minimise storage dwell time
Write this relation with symbols exactly as in Sunil Chopra Scm — Standard reference before substituting numbers. Examiners award partial marks for a correct setup even when arithmetic slips.
Relation 3 —
fillrate=linesshippedcompletelinesorderedfill rate = lines shipped \frac{complete}{lines} ordered

Formulas (Indian textbook notation)

  • fillrate=linesshippedcompletelinesorderedfill rate = lines shipped \frac{complete}{lines} ordered
Write this relation with symbols exactly as in Sunil Chopra Scm — Standard reference before substituting numbers. Examiners award partial marks for a correct setup even when arithmetic slips.

Concept in depth

Core decisions include transport mode, routing, warehouse policy, and order fulfillment architecture. Cross-docking reduces storage time when inbound-outbound synchronization is strong. Indian exam answers improve when Incoterms and service metrics like fill rate/OTIF are integrated with cost logic.

Assumptions and validity limits

State assumptions explicitly before using any relation for logistics and distribution — steady state, uniform properties, linear elastic material, ideal gas, incompressible flow, etc., as applicable.
Wrong assumptions invalidate the entire solution even when the formula is correct. In Supply Chain viva and GATE descriptive questions, listing valid assumptions often earns separate marks.

Step-by-step problem approach

1. Read the question and list given data with SI units (common in Supply Chain papers).
2. Draw a neat labelled diagram where applicable — examiners in Indian universities award diagram marks even when arithmetic slips.
3. Identify which relation from this topic applies to logistics and distribution.
4. Use equation 1:
vehiclerouting:minimisedistancecostsubjecttocapacityvehicle routing: minimise \frac{distance}{cost} subject to capacity
.
5. Use equation 2:
cross−dock:minimisestoragedwelltimecross-dock: minimise storage dwell time
.
6. Substitute values, compute, and verify units and sign (direction).
7. State conclusion in one line — e.g. safe/unsafe, stable/unstable, feasible/infeasible.

Applications & exam relevance

Logistics and Distribution appears in FMCG and manufacturing. In Indian industrial curricula this topic is tested because it connects theory to procurement, logistics, and networks.
GATE and semester exams often combine logistics and distribution with earlier units — revise prerequisites before attempting mixed problems.
Industry interview panels sometimes ask: "Where did you use logistics and distribution?" — answer with a lab, mini-project, or plant visit example if possible.

Common mistakes in exams

Students often confuse fill rate with order cycle time. Another error is ignoring vehicle capacity and route constraints while claiming minimum distance solution.

Quick revision checklist

Before attempting logistics and distribution problems, confirm you can:
1. 3PL vs in-house logistics
2. Incoterms define buyer-seller risk transfer
3. Last-mile cost highest per km
Revise the solved examples in Sunil Chopra Scm — Standard reference and one previous-year GATE or university paper for this unit.

Worked examples

Try the problem first — open the solution when you are ready to check.

Fill rate

Problem

Out of 250 order lines, 225 are delivered complete on first shipment. Find fill rate.

Solution

Fill rate = 225/250 = 0.90 = 90%.

Conceptual check — Logistics and Distribution

Problem

In a Supply Chain semester or GATE paper you are asked: "State the main assumption, the governing relation, and one practical consequence of logistics and distribution." What should a complete answer include?

📖 Standard books (India)

  • Sunil Chopra Scm — Standard reference

    Read: Syllabus unit

    Referenced in Indian B.Tech syllabus

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