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shownin the figureing Industrial engineers determine the most effective ways to use the basic factors of production - people, machines, materials, information, and energy - to make a product or to provide a service. They are the bridge between management goals and operational performance. They are more concerned with increasing productivity through the management of people, methods of business organization, and technology than are engineers in other specialties, who generally work more with products or processes. Although most industrial engineers work in manufacturing industries, they may also work in consulting services, healthcare, and communications. Industrial engineering contains many fields,such as supply chain management,production planning and control, ergonomics, Logistics engineering.Then I will mainly introduce logistics engineering.Logistics is the time related positioning of resource or the strategic management of the total supply chain. The supply chain is a sequence of events intended to satisfy a customer. It can include procurement, manufacture, distribution, and waste disposal, together with associated transport, storage and information technology.”Logistics can be briefly described like this: Logistics means having the right thing, at the right place, at the right time. At its heart, logistics deals with satisfying the customer. This implies that management must first understand what those requirements are before a logistics strategy can be developed and implemented to meet them. A logistics system can be made up of many different functional activities, some of which are described briefly below:1、 Customer service is a multi-dimensional and very important part of any organizations logistics effort. 2、 Inventory management deals with balancing the cost of maintaining additional products on hand against the risk of not having those items when the customer wants them.3、 Transportation refers to the physical movement of goods from a point of origin to a point of consumption and can involve raw materials being brought into the production process and/or finished goods being shipped out to the customer. 4、 Storage and materials handling address the physical requirements of holding inventory. 5、 Packaging focuses on protecting the product while it is being shipped and stored. 6、 Information processing is what links all areas of the logistics system together. 7、 Demand forecasting addresses the need for accurate information on future customer needs so that the logistics system can ensure the right products and/or services are available to meet those requirements. 8、 Production planning can be included under logistics because manufacturing needs components and raw materials in order to make finished goods that are, in turn, demanded by a customer. 9、 Facility location addresses the strategic placement of warehouses, plants, and transportation resources to achieve customer service objectives and minimize cost. Among them ,Inventory is the most important 。Inventory management deals with balancing the cost of maintaining additional products on hand against the risk of not having those items when the customer wants them. This task has become more complex as firms have gradually lowered inventory levels.Inventory decisions are high risk and high impact for supply chain management. Inventory committed to support future sales drives a number of anticipatory supply chain activities. Without a proper inventory assortment lost sales and customer dissatisfaction may occur. Likewise, inventory planning is critical to manufacturing. Material or component shortages can shut down a manufacturing line or force modification of a production schedule, which creates added cost and potential finished goods shortages. Just as shortages can disrupt planned marketing and manufacturing operations, inventory overstocks also create operating problems. Overstocks increase cost and reduce profitability as a result of added warehousing, working capital, insurance, taxes, and obsolescence. Management of inventory resources requires an understanding of the principles, cost, impact, and dynamics. In the enterprise production, to control the inventory is necessary 。Inventory control is the managerial procedure for implementing an inventory policy. The accountability aspect of control measures units on hand at a specific location and tracks additions and deletions. Accountability and tracking can be performed on a manual or computerized basis. Inventory control defines how often inventory levels are reviewed to determine when and how much to order. It is performed on either a perpetual or a periodic basis. A perpetual inventory control process reviews inventory status daily to determine inventory replenishment needs. To utilize perpetual review, accurate tracking of all SKUs (Stock Keeping Units) is necessary. Perpetual review is implemented through a reorder point and order quantity.Inventory typically represents the second largest component of logistics cost next to transportation. The risks associated with holding inventory increase as products move down the supply chain closer to the customer because the potential of having the product in the wrong place or form increases and costs have been incurred to move the product down the channel3. Further, the cost of carrying inventory is significantly influenced by the cost of the capital tied up in the inventory. Geographic specialization, decoupling, supply/demand balancing, and buffering uncertainty provide the basic rationale for maintaining inventory. While there is substantial interest in reducing overall supply chain inventory, inventory does
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