Possibilities to optimize the logistics chain in the manufacturing plant

Abstract

The market economy is, among other, characterized by the fact that businesses are able to respond promptly to market demands - customers. In practice, this means that the customer wants to have the goods at the location at a specific time and provided in adequate quality and price, which is determined by the market supply and demand. One of the options to increase business efficiency and competitiveness in general is to reduce production costs or the total cost. Logistics costs (in literature also referred to as "total costs") represent a very high proportion of these costs. They are part of the total cost, which greatly affect management of the company. The paper outlines the possibility of how these costs can be reduced, based on an analysis and using rationalization approach to the current state of the organization and its management, without requiring significant costs of implementing certain measures.

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