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Ballou, Ronald H., "Reformulating a logistics strategy: A concern for the past, present and future", International Journal of Physical Distribution and Materials Management, Vol. 11, No. 8, 1981, pp. 71-83.



Changes in economic climate and markets call for reevaluation of strategic logistics systems design to maintain a high efficiency level in distribution. Three key decision areas are involved in logistics systems: 1. inventory policy, 2. facility location, and 3. transportation selection/routing. Once the scope of a problem in these areas has been determined, it may be approached either by applying basic concepts and principles or by definitive computer analysis. A combination of both may also be called for. Application of basic concepts to maximize economy should consider product characteristics, product life cycle, volume of movement, competition, and postponement of shipments to avoid breaking bulk into smaller shipments. A definitive analysis may begin by examining inventory policy, and warehouse location, creating a new and improved benchmark of distribution costs and service levels, making the most of cost saving opportunities, and evaluating alternative strategies.