Read and translate the following text. Use a dictionary if necessary.

MODULE 1

УЭ – 1

About Logistics

I. Vocabulary Work

To check or build up your vocabulary on this subject, look at the words and word combinations listed on this page.

consumption [kən'sΛm(p)∫n] n	–	потребление, расход
cost [kɔst] n	–	цена
customer ['kΛstəmə] n	–	заказчик, покупатель, клиент
demand [dı'ma:nd] n	–	спрос, потребность
inventory ['ınvəntərı] n	–	товары / предметы, внесённые в инвентарь
forecast ['fɔ:ka:st] n	–	прогноз
freight [freıt] n	–	фрахт, груз; перевозка грузов
freight traffic	–	грузооборот
management ['mænıʤmənt] n	–	управление, умение справляться (с работой)
to manufacture [ֽmænju'fækt∫ə] v	–	производить, изготовлять, обрабатывать
to purchase ['pə:t∫əs] v	–	покупать, закупать, приобретать
reduction [rı'dΛk∫n] n	–	снижение, уменьшение, сокращение
schedule ['∫edju:l] n	–	список, перечень, график
to stock [stɔk] v	–	снабжать; иметь в наличии, иметь в продаже
superior [su'pıərıə] adj	–	высший, лучший, превосходный
warehouse ['weəhaus] n	–	товарный склад

Match the word combinations in column A with their Russian interpretation in column B.

1.	internal demand, home demand	a)	удовлетворять спрос
2.	retarded demand	b)	способствовать увеличению спроса
3.	poor demand	c)	пользоваться спросом
4.	continuous demand	d)	уровень спроса
5.	active demand	e)	регулирование спроса
6.	demand fluctuations	f)	структура спроса
7.	supply-demand balance	g)	соотношение спроса и предложения
8.	to meet demand	h)	сокращение спроса
9.	demand conditions	i)	сдвиги в спросе
10.	regulation of demand, management of demand, demand management	j)	равновесие спроса и предложения
11.	demand shifts	k)	колебания спроса
12.	fall in demand	l)	эластичный спрос
13.	to enjoy demand	m)	внутренний спрос
14.	to boost demand	n)	замедленный спрос
15.	expected demand	o)	небольшой спрос
16.	consumer demand	p)	оживлённый спрос
17.	market demand	q)	потребительский спрос
18.	elastic demand	r)	ожидаемый спрос
19.	supply-demand situation	s)	непрерывный спрос
20.	pattern of demand	t)	рыночный спрос

3. Match the words given below with their definitions:

management, freight, demand, inventory, cost, consumption, customer, warehouse

1.	willingness and ability to purchase goods and services
2.	the price paid or required for acquiring, producing, or maintaining smth, usually measured in money, time, or energy
3.	a person who buys
4.	the skilful or resourceful use of materials, time, etc.
5.	expenditure on goods and services for final personal use
6.	a place where goods are stored prior to their use, distribution, or sale
7.	the amount or value of a firm’s current assets that consist of raw materials, work in progress, and finished goods; stock
8.	goods for transport

4. Using a dictionary if necessary, explain the difference between the following items:

a client and a customer

management and administration

goods and inventory

to stock and to sell

demand and permission

a schedule and a diagram

a warehouse and depot ['depəu]

Complete the sentences, using the correct word or phrase from those you have seen above. To help you, the first letter of each word is given. Translate the sentences.

1.	L… – the science of planning, organizing and managing activities that provide goods or services.
2.	Many of our c… have asked us to implement our recommendations using our experienced project m… team.
3.	His work focuses on transportation negotiations and procurement, value analysis, f… and audit management for all modes of domestic or international transport.
4.	Lower production c…, ready access to labor, and eager markets, especially in Mexico, China, Eastern Europe and India have fueled a move for the USA to near-shore and off-shore manufacturing.
5.	To remain competitive, today’s “virtual manufactures” must deliver ever higher service levels and lower costs for demanding c….
6.	Working at all levels from the strategic to the day to day logisticians help clients find new ways of managing the flow of m… through their procurement and d… networks, warehousing and transport operations.
7.	Logistics is the integration of the different aspects of a business to ensure smoother f….

Study the following definitions. Be sure you remember all of them. Then ask your partner to name the definitions to check how many of them you can recognize.

1.	Logistics is the art and science of obtaining and distributing materials and product in the proper place and in proper quantities.
2.	Materials management. A term is often used interchangeably with logistics. – The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work-in-process to the warehousing, shipping and distribution of the finished product.
3.	To logist – to perform logistics functions or processes, the act of planning, organizing and managing activities that provide goods or services. (Eg. She logisted the last operation. I will logist the next operation. I am logisting the current operation. We logist the operations. The operations are well logisted.)
4.	Logistic – of or pertaining to logistics.
5.	Logistical – of or pertaining to logistics, logistics-like.
6.	Logistics Functions – planning, procurement, transportation, supply and maintenance.
7.	Logistics Processes – requirements determination, acquisition, distribution, and conservation.
8.	Cradle-to-Grave logistics – logistics planning, design, and support which takes into account logistics support throughout the entire system or product life cycle.

II. Reading Comprehension

Read and translate the following text. Use a dictionary if necessary.

LOGISTICS

Logistics means having the right thing, at the right place, at the right time.

Logistics has seen a revolution in recent years, becoming a topic of critical importance in business today. Demands for cost reduction and service improvement, as well as freight traffic and transportation management services have demonstrated that superior management of materials function is vital to the survival of a firm. Logistics lies at the heart of the great changes sweeping through today’s business environment. The competitive pressures for higher quality, quicker response time, superior service, and total customization can only be met through more intelligently run material management. This subject is about the fundamental essence of a firm - how its services are delivered to customers. It involves such tactical issues as daily order scheduling, statistical quality and quantity control, and inventory control.

As the variety of products increases, the problems of forecasting, purchasing, stocking, and distribution increase exponentially. While demand for an entire product line is forecast able with some accuracy, individual item demands vary widely. The more items in the product line, the more difficult is the forecasting, purchasing, and distribution.

Logistics has become so important in the order fulfillment process that the functions it encompasses have increased and its hierarchical position in the organization has been raised.

Meanwhile, there is wide divergence of opinion about many aspects of logistics: where the function should be placed, what its responsibilities are, and whether it should be centralized or decentralized. While the final choice must always relate to the needs of the specific firm in question, the high cost of materials equates the material management function with the main functions of the organization. A partial organization chart reflects the place of logistics.

Exhibit 1.

Organization Chart Showing Logistics Functions

General Management

Staff

Finance and Administration

Marketing

Manufacturing

Logistics

Engineering and Research

- Purchasing

- Traffic

- Warehousing

Production Planning and Control

- Production Planning and Control

- Data Processing

- Customer Service

Note the peculiar position of production planning and control. This area is crucial to manufacturing. As such, it may be assigned organizationally to logistics, but functionally to manufacturing, and physically located in the manufacturing area. To sum up everything written above, logistics is the process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements.

2. Answer the following comprehension questions:

1.	What is logistics?
2.	How business environment necessitated the appearance of logistics as a science?
3.	What functions does logistics encompass?
4.	Does the significance of logistics in a company’s structure increase or weaken nowadays?
5.	Which key words can you name to describe logistics?
6.	What is the place of logistics in a company’s organization? Who is responsible for materials management?

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