Customers withdraw and deposit money at banks. To fulfill the demand of customers sufficient
money should be available at the safes of the banks. On the other hand, too much money in
inventory is not allowed due to safety reasons. The logistics managers of the banks, therefore,
make on a daily basis forecasts on the amount of money to be ordered from the National Bank
and the amount of money to be send back to the National Bank. This forecast is translated into
a standard e-mail, which is transmitted to the National Bank. The National Bank sends a
confirmation message with an indication of the data and time of delivery. An external
transportation company is hired to transport the money. Each day this company and the National
Bank communicate on the number of trucks required and the location of the banks. All trucks
of this company are parked at the parking area of the National Bank. The transportation
company collects the money at the National Bank and transports it directly from the National
Bank to the banks. Returned money is directly transported from the banks to the National Bank.
The National Bank has two suppliers of money. Namely, the National Coin for coins and a
printing office for the notes. An EDI system is used for communication between these suppliers
and the National Bank. Coins and notes are transported from the suppliers to the National Bank
by trucks of the suppliers.
Exercise 1A (5 credits)
Indicate 5 logistics costs that might occur in this supply chain of money.
ANSWER TO QUESTION 1A
1
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