Logistic Innovation in Distribution Networks

Base Knowledge

BK1. Introductory knowledge of Logistics and Supply Chain Management.

BK2. Fundamentals of Operations Research applied to logistics.

BK3. Basic data analysis skills using spreadsheets.

BK4. Ability to read technical documentation in English.

Teaching Methodologies

LM1. Problem-Based Learning: The course unit follows a pedagogical model based on problem-solving and case studies. The teaching approach combines:

LM2. Lectures and theoretical-practical sessions: These sessions combine the presentation of concepts with their practical illustration. They cover the fundamental principles and include the analysis and discussion of illustrative examples.

LM3. Active Learning Methods: These involve participatory learning approaches and activities such as the discussion of practical case studies.

The presentation of concepts (LM2) is complemented by classroom discussions and debates.

Additionally, practical classes will include exercises and simulations using appropriate software, providing students with a broader and more diversified learning experience.

Learning Results

The main objective of this course unit is to raise students’ awareness of the importance of distribution networks within the logistics function and from an integrated supply chain management perspective. Particular emphasis is placed on logistics innovation in response to the new challenges facing management, optimization, and the monitoring of the entire decision-making process.

The learning objectives are to raise students’ awareness of:

LO1. The specific characteristics of different modes of transport and the possibility of selecting multimodal solutions.

LO2. The importance of distribution costs, their calculation using Activity-Based Costing (ABC), and the identification of inefficiencies within the distribution network.

LO3. The assessment of logistics performance through Key Performance Indicators (KPIs), such as the On-Time In-Full (OTIF) service level and total logistics costs.

LO4. The critical assessment of logistics risks and vulnerabilities, and the proposal of mitigation and innovation strategies.

Throughout the course unit, students will develop the following competencies:

C1. Decision-making and cost assessment in distribution networks.

C2. Optimized management of distribution networks.

C3. Planning and scheduling of distribution activities.

Program

P1. Innovation in Distribution Networks

1.1 Evolution of Distribution Models
1.2 Trends and Challenges in Logistics Innovation
1.3 Logistics Network Structure – Facility Location
1.4 Logistics Flows and Supply Chain Integration

P2. Costing in Logistics Distribution

2.1 Traditional Costing Methods vs. Activity-Based Costing (ABC)
2.2 Cost Centre Analysis and Contribution Margin
2.3 Costing as a Decision-Support Tool

P3. Transportation and Cargo Management

3.1 Modes and Models of Transportation
3.2 Transportation Operations Management (i.e., Capacity, Allocation and Routing)
3.3 International Trends and Multimodal Transportation
3.4 Cargo Management in Transportation Services

P4. Performance Monitoring and Analysis

4.1 Customer Service Level, Key Performance Indicators (KPIs) and the On-Time In-Full (OTIF) Indicator
4.2 Monitoring the Cost of Poor Quality and Risk-Related Costs
4.3 Total Logistics Cost and Trade-offs

P5. The Future of Distribution Networks – Resilience and Innovation

5.1 Agile and Resilient Networks: Risk and Vulnerability Management
5.2 AI and Logistics 4.0: Optimizing End-to-End Traceability and Visibility
5.3 Innovation for Sustainability (Green Logistics)

Curricular Unit Teachers

Ana Cristina dos Santos Amaro

Grading Methods

A. CONTINUOUS / PERIODIC ASSESSMENT

AM1. Written Assessment (WA) - 50%: Written test covering the theoretical content, to be held on the date scheduled for the regular examination period. Closed-book examination. Minimum grade: 7/20.

AM2. Group/Individual Project (GP/IP) - 40%: Development of a proposed solution to a practical distribution case study (30%) and its oral presentation (20%). Minimum grade: 9.5/20.

AM3. Classroom Debate (CD) - 10%: Active participation in classroom discussions and debates.

Guidelines on the use of AI: The use of AI tools is permitted as a support tool for writing.

Final Grade Calculation:

FG= (WA × 0,50) + (GP/ IP × 0,40) + (CD x 0,1)

To pass the course unit, students must obtain a final grade (FG) equal to or higher than 10/20.

The practical component grade (i.e., group/individual project) will only be considered in the calculation of the final grade if the student obtains a minimum grade of 7/20 in the Written Assessment (WA), which is graded on a scale of 0 to 20.

Eligibility for continuous/periodic assessment is conditional upon attendance of at least 70% of the classes delivered to the respective student group.

B. EXAMINATION-BASED ASSESSMENT (Resit/Special Examination Periods)

MA4. Students may opt to take only a written examination, in which case the final grade will be calculated as follows:

Final Grade (FG) = Written Assessment (Final Examination) (100%).

The written examination (WA) takes place during the designated examination period, in accordance with the academic calendar.

Students who have completed the project under the continuous assessment scheme may also choose, during any of the examination periods in the 2026-27 academic year, to retain the grade obtained in the practical assignment/project or, alternatively, to be assessed exclusively on the basis of their examination grade.

Students who have not completed the project under the continuous/periodic assessment scheme may alternatively undertake the following assessment components:

MA5. Individual Practical Project (IPP) - 35%: Development of a project based on an application case study and its presentation (topic to be defined by the lecturers, upon the student's formal request).

MA6. Written Assessment (WA) - 65%: Written examination covering the theoretical content.

The final grade will be calculated as follow

Final Grade (FG) = (IPP * 0,35) + (WA * 0,65).


    Internship(s)

    NAO

    Bibliography

    Main Bibliography

    • Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2020). Operations and Supply Chain Management. McGraw-Hill.
    • Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2019). Supply Chain Logistics Management (5th ed.). McGraw-Hill.
    • Carvalho, J. C., et al. (2017). Logística e Gestão da Cadeia de Abastecimento (2.ª ed.). Edições Sílabo.
    • Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.

    Complementary Bibliography

    • Slack, N., & Brandon-Jones, A. (2019). Operations Management (9th ed.). Pearson.
    • Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2005). Designing and Managing the Supply Chain. McGraw-Hill.
    • Ivanov, D. (2024). Introduction to Supply Chain Analytics. Springer.