International Physical Distribution Logistics and Ipd

INTERNATIONAL PHYSICAL DISTRIBUTION Logistics and Physical Distribtion

Int!rnational Trad! D!"n!d as !cono#ic transactions that ar! #ad! b!t$!!n contri!s%  Int!rnational trad! transactions ar! &acilitat!d by int!rnational "nancial 'ay#!nts( in $hich th! 'ri)at! ban*ing syst!# and th! C!ntral Ban*s o& th! trading nations 'lay i#'ortant rol!s% 

 Trad! Agr!!#!nts  Th! 'r'os! o& Trad! Agr!!#!nts is to cr!at! o''ortniti!s &or citi+!ns and h!l' to gro$ in)ol)!d 'arti!s, !cono#y%   Ad#inist!ring trad! agr!!#!nts in)ol)!s 

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.onitoring th! trading 'artn!rs, i#'l!#!ntation% N!gotiating and signing trad! agr!!#!nts that ad)anc! th! Pr!sid!nt/s trad! 'olicy

An i#'ortant ty'! o& trad! agr!!#!nt is th!  Trad! and In)!st#!nt 0ra#!$or* Agr!!#!nt 1TI0As2

PHYSICAL DISTRIBUTION  

Physical distribtion !nco#'ass!s all th! acti)iti!s in)ol)!d $ith th! 'hysical #o)!#!nt o& 'rodcts throgh distribtion chann!ls% S'!ci"cally( physical distribution includes all activities related to the storage, handling, and movement of goods to make these goods available when and where customers demand them

Systems Approach to Physical Distribution

CUSTO.ER ORDER  Th! b!ginning o& th! chain starts $ith a P4O( S4O   0or *no$ing ho$ #ch to ord!r and $h!n ( co#'ani!s ( actally th! 'rocr!#!nt ar!a has to stablish th! ROP 1r!ord!r 'oint2  

ROP = UR x LT + Safety Stock  Average order size 1 AOS2 and average number of orders 1 ANO2 ga)! s th! UR 1sag! rat!2 LT 5 L!ad ti#!

CUSTO.ER ORDER  

6! ha)! to ch!c* • •

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In)!ntory 1stoc*2 L!ad ti#!s &or d!li)!ry o& ro$ #at!rial( s''li!s or "nish!d7goods that $! co##!rcialis! to *no$ i& $! can acco#'lish or cli!nt,s d!adlin!s%

Costs associat!d to this acti)ity• •

0ollo$ ' o& th! csto#!r Costs o& allocating a 'rchas! ord!r to or s''li!rs

Ord!r Proc!ssing L!ad ti#! conc!'t is in)ol)!d   0inanc! is &nda#!ntal to ha)! or '4o( '4s on ti#!   8no$ing and &ollo$ th! co#'any,s rl!s is basic not to g!t or r!9ir!#!nt r!:!ct!ds    ;IT conc!'t - 'ro)id!rs as $!ll as or co#'any o