This course aims to provide the main methodologies and criteria for analysing, designing and managing Logistics Systems and Processes. After an overview on the strategic importance of Logistics and on the Performance Measurement Framework, the course addresses the 3 main layers of Logistics Management: Execution, Advanced Planning, System Design. The last section of the course is dedicated to Innovation in Logistics. The course fits into the overall program curriculum pursuing some of the defined general learning goals. In particular, the course contributes to the development of the following capabilities:

• Understand context, functions, processes in a business and industrial environment and the impact of those factors on business performance
• Identify trends, technologies and key methodologies in a specific domain (specialization streams)
• Design solutions applying a scientific and engineering approach (Analysis, Learning, Reasoning, and Modeling capability deriving from a solid and rigorous multidisciplinary background) to face problems and opportunities in a business and industrial environment

1. Understand and describe: 

• the main logistics strategies and their consistency with the general company strategy
• the main logistic solutions in the fields of distribution, warehousing (storage and picking), transportation, inventory management
• the main models/methodologies that are intended to convey the key principles and criteria to design and manage logistics systems

2. Apply the theories, models, principles and criteria to solve complex “likely logistics problems” and to understand and address “real-world logistics problems”

3. Design and illustrate innovative logistics solutions in new fields (e.g. B2c eCommerce)

1. The strategic role of Logistics Management. Definition of Logistics Management. Evolution of the concept of Logistics. Logistics and Supply Chain Management. The 3-layer model: execution, planning, design. The role of Logistics in the corporate strategy. Types of Logistics Strategies.
2. Logistics Performance Measurement System. Logistic costs measurement and analysis. Customer service KPIs. “Cost-Service” relationship.
3. Logistics Execution. Warehouse Design and Management: objectives, criteria, methodologies, quantitative decision-support models. Automated warehouses: performance indicators, technical features, management policies, application fields, design methods. Order Picking: technological solutions, design methods, management policies. Transportation Management. Transportation modes (road, ship, train, air, multimodal/intermodal): features and application fields. Optimization of road transportation.
4. Advanced Inventory Planning. Inventory planning in a multi-item multi-node logistic system. Collaborative Planning: Information sharing, Central coordination models (e.g. Vendor Managed Inventory -VMI), Collaboration models (e.g. Collaborative Planning Forecasting and Replenishment-CPFR). Impacts of inventory management on order cycle time.
5. Logistics System Design. Logistic network design and management. Distribution network typologies: single and multi echelon, hub and spoke, mixed structures. Design methodologies and quantitative decision support tools. Outsourcing of Logistics: objectives, logistic service providers, selection criteria.
6. Innovation in Logistics. eCommerce and Omni-channel Logistics. Logistics 4.0. Sustainable Logistics. Reverse Logistics.

The Logistics Management course leverages the following teaching methodologies:

• Theoretical lessons, i.e. “traditional” lessons to provide the students with both a deep knowledge on logistics systems/processes and criteria, methodologies, models, tools to design and manage logistics systems (ILOs 1, 2)
• Practical lessons, i.e. lessons going through structured exercises to let the students apply what they learnt during the theoretical lessons (ILO 2)
• Seminars. i.e. lectures given by external guests (top managers from multinational companies) to provide the students with strong connections with the real applications of what has been learnt during the lessons (ILOs 1, 2, 3)

Virtual/real visits, i.e. in-class (with videos) and or in-company visits to show the students the logistics systems and processes of multinational companies (ILOs 1, 2, 3)

The Logistics Management Course is based on the assumption that students have a basic knowledge of Production and Logistics Planning Models (Demand Forecasting, Inventory Management, Production Planning). Students that do not have this basic knowledge will be provided with references and material (e.g. slides, MOOCS) to fill the gap.

The final exam consists of a written part and an oral part.

The Written Exam is made of:

• Quantitative Exercises: practical exercises with numbers where students are required to design a logistics system (e.g. a warehouse, a picking system, …) applying the models learnt during the course (ILOs 1, 2)
• Theoretical Questions: open questions where the students have to prove to be able to both present/describe logistics strategies/solutions and apply them to specific contexts/problems (ILOs 1, 2, 3)

The oral assessment is made of questions that might span all the topics of the course and can modify the overall score from “minus infinite” to around “plus 2 points” in the 0-30 scale (ILOs 1, 2, 3). Access to the oral examination is allowed only if the written exam is sufficient. Oral exam is mandatory for students who got a mark equal to or higher than 28. It is elective for all the other students. The oral assessment must be taken in the same session of the written exam.

The teaching material consists of: (i) set of slides supporting the in-class lectures; (ii) practical lessons/exercises; (iii) supplementary exercises; (iv) selected references (selection of papers and chapters of relevant books, videos, etc.). All the material will be available before the related lesson on https://beep.metid.polimi.it.