Chapter1
Logistics from a Historical PerspectiveSection AOverview Logistics
A characteristic of todays society is its dependence on a wide variety of goods and services which are produced by a multitude of business organizations. These companies are highly competitive with each other in supplying goods and services. This competition occurs in three areas: in determining customers wants, in arranging the production of goods to satisfy those wants, and in making those goods available to the customers. The last responsibility is the special objective of industrys newest management function—business logistics.
Logistics has always been a central and essential feature of all economic activities. There are few aspects of human activity that do not ultimately depend on the flow of goods from point of origin to point of consumption. \[1\] Without logistics, no materials can be moved, no operations can be done, no products are delivered, and no customers are served.
Logistics has been playing a fundamental role in  global development for almost 5,000 years by  now. Since the construction of the pyramids in ancient Egypt, logistics has made remarkable strides.\[2\] Time and again, brilliant logistics solutions have formed the basis for the transition to a new historical and economic era.\[3\] Quite frankly, from approximately 1950 to 1980, limited appreciation was shown for the importance of logistics discipline.\[4\]
The practice of logistics in the business sector, starting in the later half of the twentieth century, is considered as the development of enterprises “accelerator” and the 21st century “gold industry.” Examples of this fundamental progress include the invention of the seacargo container and the creation of novel service systems during the 20th century.
In an effort to avoid potential misunderstanding about the meaning of logistics, this book adopts the current definition promulgated by the Council of Logistics Management (CLM)\[5\], one of the worlds most prominent organizations for logistics professionals.
According to the CLM, “Logistic is the process of planning, implementing, and controlling[1][2][3]物流专业英语Chapter 1Logistics from a Historical Perspective[3]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 conforming to customer requirement.” 
According to Coyle, Bardi and Langley, there are four subdivisions of logistics: 
 Business logistics—this is the same as the definition from the CSCMP and approach we are adopting in our discussion. 
 Military logistics—all that is necessary to support the operational capability of military forces and their equipment in order to ensure readiness, reliability, and efficiency. 
 Event logistics—management of all involved (activities, facilities, and personnel) in organizing, scheduling, and deploying the resources necessary to ensure the occurrence of an event and efficient withdrawal afterwards. 
 Service logistics—acquisition, scheduling, and management of facilities, personnel, and materials needed to support and sustain a service operation. 
Logistics is the management of the physical and information flows of products and of all activities related to these flows. \[6\]The physical flows of products include the movement of raw materials from suppliers (physical distribution).The information flows of products cover reports and documentation relating to goods movement. The activities related to these flows include: storage, inventory, packaging, materials handling, communication, site selection, and transportation. Thus, the logistics objective encompasses the delivery of products in correct quantities and qualities whenever they are required. 
Logistics is changing at a rapid and acceleration rate. There are some reasons: pressure to change by the development of the system itself, more flexible and accurate logistic planning and controlling through computers data processing, being flexible in handling markets of different sizes for better competition, and competitive pressures leading to more efforts to improve customer service.
This definition has been further augmented to include: the potential contribution of logistics to achieving the goals of commercial enterprise is based upon (1) the integrated management of all activities related to inventory to achieve operating objectives at lowest possible costs,\[7\] and (2) the proactive use of logistics to help achieve customer satisfaction.\[8\] This definition needs to be analyzed in closer detail.
New words
1. disciplinevt.训练；使有纪律；处罚；使有条理n.训练；纪律；学科；符合行为准则的行为（或举止）
2. promulgatevt.宣扬（某事物）；传播；公布；颁布（法令、新法律等）
3. implementvt.实施，执行；使生效，实现；落实（政策）；把……填满n.工具，器械；家具；手段；\[法\]履行（契约等）
4. encompassvt.围绕，包围；包含或包括某事物；完成
5. augmentvt.增强，加强；增加，增添；（使）扩张，扩大n.增加，补充物
6. proactiveadj.前摄的；积极主动的；主动出击的；先发制人的
Phrase
1. supplying goods商品供应
2. management function管理功能
3. economic activities经济活动
4. fundamental role基本角色
5. logistics discipline物流学科 
6. customer requirement客户需求
7. Military logistics军事物流 
8. integrated management综合管理
9. play a (an)...role in...扮演……角色，起……作用  
10. in an effort to企图，努力想，试图要
Notes
1. There are few aspects of human activity that do not ultimately depend on the flow of goods from point of origin to point of consumption. 
几乎人类所有的活动都最终依赖于货物从产地到消费地点的流动。
2. Since the construction of the pyramids in ancient Egypt, logistics has made remarkable strides. 
自古埃及建造金字塔以来，物流业已取得了很大的进步。
3. Time and again, brilliant logistics solutions have formed the basis for the transition to a new historical and economic era. 
很多良好的方案不断地为物流业向新的历史与经济时期的转变奠定了基础。Time and again，一次又一次地，不断地。
4. Quite frankly, from approximately 1950 to 1980, limited appreciation was shown for the importance of logistics discipline. 
其实，大约在1950年到1980年间人们才对物流学科的重要性有所了解。
5. Council of Logistics Management，简称CLM，是全球最有影响的物流专业组织。于2005年1月1日正式更名为美国供应链管理专业协会（Council of Supply Chain Management Professionals，CSCMP）。 CLM成立于1963年，凭借会员的积极参与和杰出才能，协会一直致力于推动物流业的发展，为物流从业人员提供教育的机会和信息。为实现这一目标，物流协会向行业人士提供了种类繁多的项目、服务、相关活动，促进从业人员的参与，了解物流业，从而对物流事业作出贡献。
6. Logistics is the management of the physical and information flows of products and of all activities related to these flows. 
物流是对产品的实际流动与信息流动，及对与这些流动相关活动的管理。
7. the integrated management of all activities related to inventory to achieve operating objectives at lowest possible costs.
用最低成本对所有库存相关活动进行综合管理，以达成操作目标。
8. the proactive use of logistics to help achieve customer satisfaction. 
充分运用物流业来帮助实现客户满意度。
Section BWhat is the Scope of Logistics Activities?
The word “logistics” comes from the Greek logistike, which translates as “the art of calculating” using concrete items, in contrast with arithmetike, which was the art of calculating using abstract concepts. The latter eventually evFigure 11Military logistics at the wartimeolved into the modern concepts of arithmetic and algebra.
Historically, the concept of logistics stems from specific facets of industrial and military management.\[1\] However, the modern interpretation of the term “logistics” has its origins in the military, where it was used to describe the activities related to the procurement of ammunition and essential supplies to troops located at the front.(See Figure 11)
Military logistics is the discipline of planning and carrying out the movement and maintenance of military forces.\[2\] In its most comprehensive sense\[3\], it is those aspects or military operations. The field of logistics has become much broader than initially defined.
In the industrial and commercial sector, logistics is often called “business logistics” or “industrial logistics”. Modern industrial logistics is related to the effective and efficient flow of materials and information that are of vital importance to customers and clients in various sections of the economic society.\[4\] It covers a variety of activities which include, but are not limited to, the following: 
 Souring
 Purchasing
 Warehousing 
 Inventory management
 Product distribution
 Transportation
 Customer service
Logistics is usually thought of in connection with military or manufacturing operations. However, there can be projects involved in logistics (e.g. building a bridge to move troops) and logistics involved in projects (e.g. supplying material to a construction site). It is not surprising, then, that these two disciplines interact and learn from each other.
Social and political implications also result from logistics. Social and cultural unity is achieved. The exchange of goods leads to an exchange of ideas and culture. The accompanying personal contacts encourage a national and international outlook, replacing narrow local or provincial views. From a political perspective, logistics contributes to a strong national defense.\[5\]The nations investment in transportation facilities (roads, highways, ports, etc.) is in response to logistics needs. The political influence extends also to the economic and safety regulations of transport carriers. In fact, the nations transportation network reflects a political as well as an economic base.
More recently, logistics has been viewed on a much broader scale and the field of logistics has been growing at a rapid pace, stimulated primarily by the technological, sociological, and economic trends in our world today. Some wellknown logistics companies include UPS, FedEX etc. (See Tab. 11)
In summary, logistics occupies a major role in an economy. Economic, social, and political benefits are realized, affecting both the interests of the nation as well as its individual citizens.Tab.11Global industrial logistic companies
CompanyBusinessSales
(million dollar)Net Profit
(million dollar)increase in 
profit(%)1Deutshe Post/Danzas 
GroupExpress,forwarder,
logistics30,8582,2457.32UPSLogistics,forwarder,
express29,7712,93415.23FedExAir cargo,logistics19,6295845.54Nippon ExpressTruck,forwarder,
logistics14,21121525Union PacificRailway11,878842166Stinnes/SchenkerForwarder,logistics11,3451422.27TPC/TNT/CTI GroupExpress,Logistics9,3744969.38A.P.MollerShipping,logistics9,3381193.59BNSFRailway,logistics9,0251,01923.410NYKShipping,logistics9,1522877.7New words
1. arithmeticn.算术，计算；算法
2. algebran.代数学，代数
3. interpretationn.解释，说明；翻译；表演，演绎；理解
4. procurementn.获得，取得；采购
5. implicationn.含义；含蓄，含意，言外之意；卷入，牵连，牵涉，纠缠；\[逻辑学\]蕴涵，蕴含
Phrases
1. transportation facilities运输工具
2. concrete items具体实物 
3. abstract concepts抽象概念
4. essential supplies重要的，必要的供应
5. stem from来源于
6. result from由于
7. in response to回答；响应
8. safety regulations安全规程，安全守则
Notes
1. Historically, the concept of logistics stems from specific facets of industrial and military management. 
从历史角度看，物流这一概念来源于工业及军事管理的一些特定方面。
2. Military logistics is the discipline of planning and carrying out the movement and maintenance of military forces.
 军事物流是关于军事行动的计划与实施，及军事力量的维持。
3. in its most comprehensive sense 
从更广泛的角度来看
4. Modern industrial logistics is related to the effective and efficient flow of materials and information that are of vital importance to customers and clients in various sections of the economic society. 
现代工业物流是关于材料与信息的高效率流动，而这些材料和信息对经济社会的多个领域的顾客来说都是至关重要的。
5. From a political perspective, logistics contributes to a strong national defense. 
从政治角度来看，物流有利于增强国防力量。
Section CLogistics Strategies
Efficient management of the flow of  goods from pointoforigin to pointofconsumption at the macro society or micro firm levels requires successfully planning, implementing, and controlling a multitude of logistics activities.\[1\]
Effective logistics resolves around five key issues—movement of product, movement of information, time/service, cost and integration.\[2\]
The increasing rate of change in technologies and markets and the search for competitive advantage has led to a new focus on logistics strategy and management. The modern organization in a free market  needs to be  agile, able to make rapid decisions, in order to respond to the changing circumstances and thereby gain an advantage over its competitors.\[3\] Logistics strategy appears as a subset of the overall strategy. It is about formulating a longterm plan for the supply chain, as distinct from solving the daytoday issues and problems that inevitably occur.\[4\]Logistics must be consistent with corporate goals and strategies of organization. Logistics provides the interface between the external and internal environments, and consists of five interrelated components: 
 Configuration/facilities network strategy
 Coordination or organization strategy
 Customer service strategy
 Integrated inventory strategy
 Information technology strategy
As businesses continue to globalize, attention has increasingly turned to international logistics strategies. The international strategy is an element of the internationalization strategy of manufacturing companies. The decision about which international logistics strategy to choose can be made only within the context of the overarching internationalization strategy. When a company creates international logistics strategies, it is defining the service levels at which its logistics organization is at its most cost effective. WalMarts business has been able to grow rapidly and now has become wellknown companies, because the cost savings as well as international logistics strategies and distribution systems and supply chain management has made tremendous achievements.
New words
1. circumstancesn.境况；境遇；（尤指）经济状况；命运；环境(circumstance的名词复数 )；事件；境遇；机遇
2. formulatev.构想出(formulate的现在分词)；规划；确切地阐述；用公式表示
3. manufacturingn.制造业，工业adj.制造业的，制造的v.（大规模）制造(manufacture的现在分词 )；捏造；加工；粗制滥造（文学作品）
4. tremendousadj. 极大的，巨大的；可怕的，惊人的；极好的
Phrases
1. competitive advantage竞争优势
2. overall strategy总体战略
3. external and internal environments内外环境
4. distribution systems分销系统
5. supply chain management供应链管理
6. search for寻找，搜索
7. lead to导致，通向
8. respond to对……做出回应，响应
9. supply chain供应链，供给链，供需链
10. daytoday日常的，逐日的
11. consistent with符合，与……一致
12. consist of由……组成，构成 consist(of ): 由……组成；包含
13. turn to转变；变成
14. wellknown著名的；众所周知的
15. as well as也；和…一样；不但……而且……
16. Logistics Strategies物流策略
Notes
1. Efficient management of the flow goods from pointoforigin to pointof consumption at the macro society or micro firm levels requires successfully planning, implementing, and controlling a multitude of logistics activities.
无论是宏观社会还是微观企业，要使货物从产地高效流通到消费地，必须成功地计划、执行和控制各种物流活动。
2. Effective logistics resolves around five key issues—movement of product, movement of information, time/service, cost and integration.
有效的物流是围绕着五个要素展开的——产品的流动、信息的流动、时间/服务、成本和一体化。
3. The modern organization in a free market  needs to be a agile one, able to make rapid decisions, in order to respond to the changing circumstances and thereby gain an advantage over its competitors.
自由市场中的现代组织必须反应敏捷，并能够对环境的变化做出快速的决定，从而获得超过其竞争对手的优势。
4. It is about formulating a longterm plan for the supply chain, as distinct from solving the daytoday issues and problems that inevitably occur.
与那些不可避免的几乎每天发生的情况和问题不同的是，这是关于制订长期供应链计划。 
Section DUsing Logistics as A Competitive Weapon
Logistics is a hot topic in China and the whole world. Although it is anything but a newborn baby, lots of people still have limited awareness of, and knowledge about logistics.\[1\]
The purpose of logistics is to gain a competitive advantage in the marketplace. By improving customer service performance, expanding geographical markets, and increasing market penetration of present markets, logistics contributes to additional sales. It increases revenue. \[2\]
Logistics has the “7R” characteristics, namely: the right product with the right quality in the right quantity has to be delivered at the right time and right place to the right customer at the right cost.
Logistics supports competitiveness and availability as a whole by meeting the endscustomer demands in supplying what is needed in the form it is needed, when it is needed at a competitive cost. 
Service advantage
Increase and maintain customer service levels across all dimensions and channels, from delivery performance to adhoc customer response and last minute order changes. Logistics is an integral part of the customer service or marketing mix. Service now plays a major role in customers buying decisions and logistics is targeted at customer service. Excellence in logistics can result in strong customer relationships, and improve the firms value to the customer.
Time advantage
Reduce overall cycle time—from order placement or demand projection to customer delivery and availability to a matter of hours and days.\[3\] Time measures how long a customer has to wait in order to receive a given product or service. Speeding up the supply chain processes may help to maintain the customers, because they dont want to wait, especially for those prepared to pay more to get what they want.
Cost advantage 
Logistics accounts for a major portion of a companys value chain costs, and savings through improved logistics strategies and improved processes go straight to the bottom line. Many products are supported from a supply chain point of view by lowcost manufacture, distribution, servicing and the like, such as “own brand”. Examples of products that compete on low price are “own brand” supermarket goods that reduce operation cost and advertising cost of major brands. Because of the low cost, Tesco\[4\] can develop and offer responsible products at affordable prices to as many consumers as possible through its own brand ranges (See Figure 12).
Figure12Tescos own brand products
New words
1. geographicaladj.地理学的，地理的
2. penetrationn.渗透，穿透;\[军\]突破;洞察力
3. revenuen.（土地，财产等的）收入，收益，所得，\[复数\]总收入
4. adhocn.点对点
5. integraladj.完整的；积分的；必须的n.整体；积分
6. projectionn.预测；规划，设计；\[心\]投射；突起物
7. portionn.一部分
Phrases
1. appropriate to适当的，恰当的
2. as a whole作为一个整体；总的来说
3. integral part主要的部分，组成部分
4. customer service客户服务，售后服务
5. be targeted at以……为目标
6. result in导致，结果是
7. speed up加速，使加速
8. supply chain供应链
9. bottom line底线，最低限度
10. additional sales额外销售额
11. marketing mix市场营销组合
12. own brand自有品牌，又称为商店品牌，是指零售企业从设计、原料、生产到经销全程控制的产品，由零售企业指定的供应商生产，贴有零售企业品牌，在自己的卖场进行销售，实质上是零售业的OEM产品。特点是自产自销商品，省去许多中间环节，使用自有品牌的商品可以少支付广告费，进行大批量生产、销售，可以取得规模效益，降低商品的销售成本。
Notes
1. Logistics is a hot topic in China and the whole world. Although it is anything but a newborn baby, lots of people still have limited awareness of, and knowledge about logistics.
物流在中国乃至全世界都是一个热门话题。虽然它已经不是一个新生事物了，但是不少人对物流的认识仍然有限。
be aware of something意识到
2. By improving customer service performance, expanding geographical markets, and increasing market penetration of present markets, logistics contributes to additional sales. It increases revenue. 
通过改善客户服务，拓展地域市场，以及提高目前市场渗透率，物流有助于增加销售和总体收入。
3. Reduce overall cycle time—from order placement or demand projection to customer delivery and availability to a matter of hours and days.
降低总周期时间，即包括从下订单到客户交付和使用，甚至降低到小时和天。
4. Tesco: 乐购是以生产“康师傅”方便面闻名的台湾顶新国际集团于1997年创立的连锁超市品牌，2006年由英国最大的零售商——Tesco控股经营，全名为“Tesco乐购”。截至2008年10月，Tesco乐购在华东、华北和华南三个区域拥有58家大卖场。
Exercises〖*4/5〗Ⅰ. Answer the follow questions in English.1. What is the characteristic of todays society mentioned in the article? Where might the competitions between business organizations come from?
2. According to this article, why is logistics so important?
3. What kind of role could be played by logistics in constructing pyramids in ancient Egypt?
4. What is CLM?
5. What is logistics? Please conclude a definition by yourself.
6. Where does the word “logistics” come from?
7. What is the difference between logistike and arithmetike?
8. How was logistics initially used in the military?
9. What is modern industrial logistics? 
10. What activities may the modern industrial logistics cover ?
11. What are the five components that the logistics include?
12. What are the “7R” characteristics that logistics has?
13. What advantages does the logistics have?
Ⅱ. Choose the best word or phrase that fits the sentence. 
1. These companies are highly competitiveeach other in supplying goods and services. 
A. onB. withC. forD. in
2. Time and again, brilliant logistics solutions have formed the basis for the transition to a new  and economic era.
A. history         B. historical          C. historic     D. political
3. The physical flows of products include the movement of raw materials from .
A. wholesalers         B. suppliers         C. consumers     D. retailers
4. Logistics is the  of the physical and information flows of products and of all activities related to these flows.
A. management     B. manager         C. charge         D. control
5. The potential contribution of logistics to  the goals of commercial enterprise is based upon...
A. achieve         B. achieving      C. achievement     D. achieved
6. The field of logistics has become much broader than initially.
A. define         B. defining         C. definition         D. defined
7. Logistics is usually thought of in connection with military or operations.
A. manufacturing B. manufacture     C. manufacturer     D. manufactured
8. The exchange of goods leads to an of ideas and culture.
A. change         B. interchange     C. exchange         D. changing
9. The nations investment in transportation facilities (roads, highways, ports, etc.) is in to logistics needs.
A. respond         B. responsible     D. responsibility     D. response
10. In fact, the nations transportation network reflects a political an economic base.
A. but             B. other than         C. as well as         D. rather than
11. Logistics must be with corporate goals and strategies of organization.
A. persistent         B. associated     C. constant         D. consistent
12. As businesses continue to, attention has increasingly turned to international logistics strategies.
A. urbanize         B. modernize     C. globalize      D. localize
13. By improving customer service performance, expanding geographical markets, and increasing market penetration of present markets, logistics additional sales.
A. contributes to     B. attributes to     C. due to          D. owes to
14. Logistics accounts for a major of a companys value chain costs, and savings through improved logistics strategies and improved processes go straight to the bottom line.
A. proportion     B. portion         C. section         D. piece
15. Because of the low cost, Tesco can develop and offer responsible products at prices to as many consumers as possible through its own brand ranges.   
A. afford         B. unacceptable     C. affordable     D. favorite     
Ⅲ. Match each word on the left with its corresponding meaning on the right.
A.B. 
1. essential                     (a) unusual or striking
2. ultimately                    (b) having a quality that thrusts itself into attention 
3. origin                        (c) a detailed list of all the items in stock
4. remarkable                (d) just in time
5. prominent                    (e) the act of getting possession of something
6. inventory                    (f) absolutely necessary; vitally necessary
7. distribution                (g) the smallest possible quantity
8. acceleration                (h) as the end result of a succession or process  
9. implementing                (i) the act of distributing or spreading 
10. procurement                (j) the place where something begins
Ⅳ. Fill in the blanks with words or phrases from the list below. 
playing...role inconforming toon low pricedepend on
in connection with         in an effort to         speeding up     internal
investment in            related to
1. There are few aspects of human activity that do not ultimately  the flow of goods from point of origin to point of consumption.
2. Logistics has been  a fundamental  global development for almost 5,000 years now.
3.  to prevent the crisis getting worse, the government is making its best to work out a positive policy.
4. All the processes are actually working for only one purpose of  customer requirement.
5. Logistics is the management of the physical and information flows of products and of all activities  these flows.
6. Logistics is usually thought of military or manufacturing operations.
7. The nations  transportation facilities (roads, highways, ports, etc.) is in response to logistics needs.
8. Logistics provides the interface between the external and environments
9. the supply chain processes may help to maintain the customers, because they dont want to wait, especially for those prepared to pay more to get what they want.
10. Examples of products that competeare “own brand” supermarket goods that reduce operation cost and advertising cost of major brands.
Ⅴ. Translate the following sentences into Chinese. 
1. U.S. shippers say there are innumerable issues to keep in mind when setting up supply chain and logistics operations in China. However, most agree that becoming successful in the region requires customization with several logistics partners.
2. Smith is adamant about integrating department, for example, purchasing department must have open communication with its import and export departments.
3. Companies are in a race to leverage emerging markets—both as lowercost supply sources and as new sources of revenue.
4. Eight of historys ten largest mergers occurred in 2006; so the fact that mergers and acquisition (M&A) will be biggest and more frequent than ever should not come as a surprise.
5. Guangdongs key ports realized cargo throughput of 886 million tones in 2008, up 6.19 percent year on year.
Ⅵ.  Translate the following sentences into English.
1. 美国经济高度发达，也是世界上最早发展物流业的国家之一。
2. 20世纪60年代，随着世界经济环境的变化，美国现代化市场营销的观念逐步形成，客户服务成为企业经营管理的核心要素。
3. 据了解，世界500强中的400多家企业在中国都有投资，其中90%左右的外资企业选择了物流外包。
4. 一个成功的物流企业，必须具备较大的运营规模，建立有效的地区覆盖，具有强大的指挥和控制中心。
5. UPS是全球最大的投递机构，全球最大的包裹递送公司，同时也是全球最大的专业运输和物流服务提供商。
Chapter2
Inventory ManagementSection AWhat is Inventory?
Inventory represents one of the most important assets that most businesses possess, because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the companys shareholders or owners.\[1\] Decisions on inventory are both high risk and high impact throughout the supply chain. Inventory committed to supporting future sales drives a number of anticipatory supply chain activities. \[2\]Without the proper inventory management, lost sales and customer dissatisfaction may occur. Inventory must be maintained at a proper level and provided in a timely fashion, otherwise production efficiencies will erode, as in the case of a service or manufacturing business, or sales will plummet, as in the case of a wholesaling or retailing business.
Formulation of an inventory policy requires an understanding of the role of inventory in manufacturing and marketing.\[3\] Inventory serves five purposes within the firm: (1)it enables the firm to achieve economies of scale; (2)it balances supply and demand; (3)it enables specialization in manufacturing;  (4)it provides protection  in demand and order cycle; and (5) it acts as a buffer between critical interfaces within the channel of distribution.\[4\]
There are several different categories or types of inventory. The first is called materials and components. This usually consists of the essential items needed to create or make a finished product, such as gears for a bicycle, microchips for a computer, or screens and tubes for a television set. 
The second type of inventory is called work in progress inventory (WIP). This refers to items that are partially completed, but are not the entirely finished product. 
The third and most common form of inventory is called completely finished goods. These are the final products that are ready tobepurchased bycustomers andconsumers. Finished goods can range from cakes to furniture to vehicles. Most people think of the finished goods as being part of an inventory stock, but the parts that create them are held accountable in inventory[1][2][3]物流专业英语Chapter 2Inventory Management[3]as well.
The raw materials, workinprocess goods and completely finished goods  are considered to be the portion of a business assets that can be calculated with money and they are ready or will be ready for sale.
There are many different ways that companies handle their inventory. Overall it depends on what kind of business it is. For example, a food manufacturer who makes canned meat may take into account every single piece of that can in its inventory. The materials used to make the can, the labels, the meat, and the spice filling could all be part of the overall analysis of inventory. \[5\] Keeping track of inventory can be a complex process. Several different people are involved in logistics. This can include everything from the owner of the company to the transportation company that delivers the goods to the manufacturing plant. By using complex systems such as barcode integration, every piece of inventory from the smallest parts to the largest finished product can be tracked and observed. You may wonder why companies keep such a close eye on their inventory. Without inventory control, millions of dollars could be lost each year just because there was no accountability for everything involved in making a product.
New words
1. turnovern.翻滚，翻倒，弄翻，逆转，转向；半圆形的小馅饼；营业额，成交量，证券交易额；\[体育运动\] 易手，失球adj.可翻下的，或折转的
2. subsequentadj.后来的;随后的;作为结果而发生的;附随的
3. shareholders股东，投资者；股民（shareholder的复数）
4. anticipatoryadj.预期的；提早发生的
5. dissatisfactionn.不满，不平;令人不满的事物
6. plummetvi.垂直落下；骤然跌落n.铅锤；坠子；重压物
7. componentsn.（机器、设备等的）构成要素，零件，成分;成分(component的名词复数 );\[物理化学\]组分;\[数学\]分量;（混合物的）组成部分
8. barcode条形码
Phrases
1. be committed to致力于
2. consist of由……构成；包含
3. range from...to...在从……到……的范围或幅度内变动或变化
4. be considered to be被认为是
5. depend on依靠；依赖；取决于
6. keep an eye on照看；留意；密切注视
7. retailing business零售业 
8. involve in参与；包含；涉及
Notes
1. Inventory represents one of the most important assets that most businesses possess, because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the companys shareholders or owners.
库存是大多数企业拥有的最重要的资产标志之一，因为存货周转代表着公司的股东或业主创收和后续盈利的主要来源之一。
2. Inventory committed to supporting future sales drives a number of anticipatory supply chain activities.
以支持未来销售为目的的库存能够驱动一系列预期供应链活动。
3. Formulation of an inventory policy requires an understanding of the role of inventory in manufacturing and marketing. 
库存策略的制定要求了解库存在制造及营销中的作用。
4. (4) it provides protection in demand and order cycle; and (5) it acts as a buffer between critical interfaces within the channel of distribution.
（4）保护需求周期和订货周期； （5）在分销渠道的主要环节起缓冲作用。
5. The materials used to make the can, the labels, the meat, and the spice filling could all be part of the overall analysis of inventory.
用来制作罐头、标签、肉、香料填充的材料都可能是总体库存分析的一部分。
Section BInventory Carrying Cost
Inventory costs are important for three reasons. First, inventory costs represent a significant component of total logistics costs in many companies. \[1\]Second, the inventory levels that a firm maintains at points in its logistics system will affect the level of service the firm can provide to its customers. Third, cost tradeoff decisions in logistics frequency depend on and ultimately affect inventory carrying cost.\[2\]
The cost to carry inventory measures the overhead that an organization carries to support its inventory. In addition to the money originally spent to purchase it, more money will be spent on upkeep while inventory sits in your possession. The longer the inventory is there, the more it will cost in upkeep. Carrying cost is usually expressed as a percentage that represents the cents per dollar that will be spent on inventory overhead per year.
Assuming an annual inventory carrying cost percentage of 20 percent, the annual inventory expense for an enterprise with ＄100 million in average inventory would be ＄20 million. 
Inventory Carrying Cost = Inventory Carrying Rate (See above) × Annual Inventory Expense (20%×＄100). While the calculation of inventory carrying expense is basic, determining the appropriate carrying cost percent is less obvious.
Inventory carrying costs consist of a number of different factors or elements, and the importance of these factors can vary from product to product.
There are four major components of inventory carrying cost: obsolescence, storage space cost, insurance cost, and taxes.
Obsolescence
Inventory obsolescence means inventory is no longer salable because of pilferage, fire or technical, fashion obsolescence and price decline. \[3\]Obsolescence cost results from deterioration of product during storage. For example, perishable items such as meat, bread, fruit and pharmaceuticals whose guarantee period is short, which make them with little or no value after the expiration date, which affects the consumption. By contrast, a book loses its value more slowly through time. Obsolescence also includes financial loss when a product no longer has fashion appeal or no longer has any demand.
Storage cost
Storage cost includes handling costs associated with moving products into and out of inventory, as well as storage costs such as rent, heating, cooling and lighting. Some products have very specialized storage requirements, for example, ice cream must be stored at a temperature below -18 ℃(See Figure 21).Figure 21Storage temperature for food
ProductsStorage temperature(℃)ProductsStorage temperature(℃)Meat-2～4Ice cream-18Fish-1～1milk2～5Insurance cost 
Insurance of inventory against fire, flood, theft and other perils. Insurance cost is an expense based upon estimated risk or loss over time, which is not uniform across products. For