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Logistics Operations and Management by Laleh Kardar, Shabnam Rezapour, Reza Farahani

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4. Logistics Philosophies
Zahra Rouhollahi
Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran
Two important logistics philosophies and their strategies will be discussed in this chapter. Lean philosophy concentrates on eliminating wastes, and it is suitable for markets in which prices are competitive weapons. Lean manufacturing was first used by Womack et al. in 1990. In lean philosophy, the aim is to reduce all kinds of wastes that emerge in logistics activities. Finding the value stream is the most important principal of lean philosophy. Application of lean in warehousing is called cross docking. In cross docking, non–value added activities such as storage and order picking are eliminated. Agile philosophy ...

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