PARETO ANALYSIS -- Logistics Cost
According to Pareto analysis, 80% of a project's benefits can be obtained by doing 20% of the effort, or, in the opposite case, 80% of issues can be linked to 20% of the causes. A strong tool for decision-making and measuring quality is Pareto analysis. The process of Logistics is based on planning and then the execution of the transportation and the storage of goods in an efficient way from the point of origin to the point of utilization. Let’s take a company example named Platinum Pharmaceuticals Pvt Ltd, its CEO is targeting logistics manager about the issues in the logistics process: The cost that faced by the company in their logistics process shows in the chart: PARETO ANALYSIS S# LOGISTICS LOSS IN AMOUNT CUMM CUMM. % 1 Warehousing 7500000 ...