Course syllabus

Course-PM

TEK620 TEK620 Management of physical distribution lp3 VT23 (7.5 hp)

Course is offered by the department of Technology Management and Economics

Contact details

Examiner

Dan Andersson, dan.andersson@chalmers.se

Course assistant

Carolin Behrens, carolin.behrens@chalmers.se 

Course purpose

Short description of the course purpose and content: can be copied from syllabus in Studieportalen. Additional information can be added.

Schedule

TimeEdit

Course literature

See Syllabus in PDF format

Course design

The course takes its starting point in the need for distribution that shippers (manufacturing or trading firms) have and their distribution systems. The different functions in the physical distribution system are described and it is discussed how these should be managed and by whom and the effects of different logistics concepts are analysed. The focus is on costs and revenues and factors that influence them but also environmental as well as ICT aspects are considered. Price models and resource utilization is of great importance. The general requirements and cost structures connected to different modes of transport and distribution solutions are outlined and evaluated in the light of value creating in logistics. The connection and disconnection between cost and price in logistics and transport is further developed in the terms of full cost covered or marginal costs. This is of importance since the transport industry has a large portion of fixed costs and vaguely formulated marginal costs. Pricing with a base in marginal costs in relation to full financial coverage is discussed in the light of adjustments necessary to adapt economic models to financial realities, technical aspects, organizational preconditions and demands from the market. One especially important issue is resource utilization with regards to financial as well as environmental impact. The question of overcapacity in transport systems is further complicated by the fact that many systems are forced to work alongside of each other. One way of solving this is to utilize information technology in order to control the resources and movement (e.g. tracking and tracing) of goods.

The course contains the following topics:

• The different components and functions of the physical distribution system and their coordination and control.
• Cost structures connected to the different physical distribution structures and combinations of modes of transport.
• Resource utilization with regards to financial, organizational and environmental issues.
• Division of roles and responsibilities along the distribution chain.
• The demand for distribution services and how logistics and distribution services are procured.
• The role of logistics service providers in physical distribution.
• The use of information systems to control the movement and the tracking and tracing of goods.
• Price models for physical distribution services, and marginal cost pricing in relation to average cost.
• Customer value and consumer surplus.
• Physical distribution in urban areas

The course is built up around lectures, seminars and a group assignment (based on a fictional case). Theory is mixed with examples of practical applications in the industry

In Canvas you will find all the course material and information you need (e.g. PowerPoints from lectures, exercises, reading material, the case description and additional information). Here you should also upload different assignments (literature seminars, case) and book meetings and register for attending seminars.

 

Learning objectives and syllabus

Having passed the course, you should be able to:

• Define and analyse resource utilization from a financial as well as environmental perspective while considering contextual influences.
• Explain the general requirements and cost structures of different distribution systems and corresponding freight transport modes.
• Review economic models used in distribution with respect to financial and technical aspects, organizational preconditions as well as demands from the market.
• Explain the relationships between cost and price for logistics and transport services in physical distribution, including defining fixed and marginal costs as well as environmental effects.
• Analyse and explain how physical distribution systems are controlled and the use and sharing of information.
• Use tools for quantitative analysis of distribution system data.

Link to the syllabus on Studieportalen.

Study plan

 

Examination form

The examination consists of the following elements: seminar hand-ins, active participation in the seminars, hand in of the case report and participation in the case presentation/discussion, and finally a written exam. All of the individual parts of the examination must reach a minimum level for passing the course. In total these parts give 100 points and the course is graded as follows:

• Failed < 40% 
• 3 ≥ 40 %
• 4 ≥ 60 %
• 5 ≥ 80 %

The points for each part in the course are as follows:

• written exam: 0-65 points (pass 26p)
• case assignment (including presentation and discussion): 0-25 points (pass 10 p)
• seminar I: 4 points
• seminar II: 4 points
• seminar III: 2 points

 

Literature seminars

Three literature seminars are part of the course, and it is mandatory to attend these. Each seminar assignment contains two parts: (1) written individually answers to seminar questions and formulation of an own question, to be submitted before the seminar, (2) active participation in the seminar.

Each seminar will be based on assigned readings and specific questions, which will be provided in Canvas. In order to be allowed to attend the seminars, you are required to individually answer the questions for each seminar and hand in these before the seminar. If your answers to the questions are not sufficient to obtain the points for the seminar you will be given the opportunity to update your answers after the seminar.

Time table for seminars

Sem I 31^st January and hand-in 30^th January

Sem II 10^th February and hand-in 9^th February

Sem III 28^th February and hand-in 27^th February

Further instructions will be provided in Canvas where you will find the assignments for each of the three seminars.

 

Case assignment

The case assignment is to be solved by groups of four students, who are supposed to play the role of members of a consultant team. This team is working for a logistics manager at a company, who needs an analysis of their distribution system. Each team of consultants will have a meeting with the CEO of the case company. The CEO will give you information based on his knowledge of the company. He will focus on getting a useful result from you, as representative of the company, and you will not get any specific directions from him regarding how you should carry out your work. Instead, you will get guidance by a supervisor, who you will meet at two supervision meetings during the course.

The presentation and discussion of your work will be held March 10^th and the report will be handed in 8^th March.

Further instructions will be provided in Canvas. At the same place you will also find an initial information package for the case, which includes a background, shipment data, and an internal report about a new distribution set up. Forthcoming news about the case will be provided continuously.