LOGISTICS SYSTEMS ANALYSIS Logistics, the subject of this monograph, is narrowly defmed here to be the science that studies how to convey items from production to consumption in cost­ effective ways; some subjects of interest to logistics managers such as reliability and maintenance are not addressed. The theories that are covered, on the other hand, apply to generic items that can represent people, as well as freight; they should be of interest to passenger transportation firms and agencies. Besides'transportation, a logistics system usually includes other activities such as inventory control, handling, and sorting, which must be carefully coordinated if cost-effectiveness is to be achieved. Yet, both in theory and practice these activities are often examined separately. The operations research field includes sub-fields with specialized journals in inventory control, transportation, warehousing, etc ... Over the years, these sub-fields have evolved into disciplines that have developed their own specialized conventions and jargon, as a result making it increasingly difficult for researchers to communicate across disciplinary boundaries. Something similar happens in practice when firms become compartmentalized; if responsibilities for different logistical activities are allocated to different managers, decisions in the best interests of the firm are difficult (if not impossible) to make.