Logistics Supply Chain

Literature review

The basis of the present study is provided by a large body of academic literature and logistic business publications, including Internet research and the resources has been employed to gather insights into the essence and value of supply chain effectiveness.

Different scholars are also introducing and teaching how to improve supply chain through their works and research studies. For a long time, those studies were mostly confined to general issues and were largely theoretical. Though a relatively new feature, this position is nevertheless is gaining strong support and often appears in academic argument which signifies a profound shift in emphasis and attempt to decrease the discrepancy theory and reality. Among numerous researches

That will lead to increased logistics costs. It allows clearly structured supply system in the company, which has specific quality standards. (Bowersox D., Closs D. 2012)

The effectiveness of logistics supply management is primarily determined by the best use of financial, material and other types of resources. The effective use of these resources is achieved by solving a large number of optimization problems. One of the most common problems is the definition of EOQ (Economic order quantity). This notion stems from studies of optimal level of product order. This model, allows optimizing the supply so that there was no shortage of goods, at the same time minimize the cost of storage.

Relevant bibliography of the publications on the subject is provided M. Christopher (2001) in the supplement to the article «Logistics and Supply Chain Management: Strategies for Reducing Costs and Improving Services». There are three main indicators, by which controlled the activities of the supply chain management: time, price and reliability of supplier. Time control implies control of the detained shipments, as well as the consequences of delays. These indicators should be analyzed:

• The share of

Jonson and D. Wood (1990). The authors think that it is impossible to examine the effectiveness of the supply chain at the enterprise by one criterion. It means, in determining the effectiveness of procurement operations need to comprehensively assess the work of supply chain management. Different sets of procurement operations have been worked out by Leenders, Johnson, Flynn and Fearon (2007). These set includes:

• Tracking execution of the procurement plan for the volume and quality indicators;

• Implementation of the budget of the company and the amount of savings;

• Monitoring of the volume and the value of lost sales.

Tracing the activity of purchasing department, it is possible to judge the effectiveness of its operation, and to identify existing problem points.

Based on the fact that it is developing sphere, from a theoretical point of view during the precise studying, the majority of current theories seem to be controversial. Additionally, while closer inspection some of them fail to criticism, especially the framework suggested. In this paper we do not doubt in the presented methods and we will try applying them into