Logistics Management HW 1

With the growing interest in recycling and waste management, manufacturers are implementing:
Reverse logistics systems
What is another name for physical supply?
Inbound logistics
What is false regarding customer service?
All customers should be treated equally
What is the best level of inventory to keep in distribution centers?
A level which will provide an acceptable level of service while minimizing total carrying costs
Successful supply chain management is based upon the integration and management of 3 types of “flows” or basic processes. Which is not a “flow”?
Time
In the final analysis, the success of today’s global supply chains is measured by?
The value they add for their customers
Globalization is a dominant driving force for world economics, and is rarely impacted by advances in technology
False
What is the total systems concept based on?
(Trade-off) relationships between the various elements of a distribution system
What are the 4 basic sectors of business operations which have undergone deregulation over the past several years?
Transportation, financial, power, and communication
According to the class discussions, who are the best logisticians in history?
Cowboys
In today’s view of business logistics in a firm, Physical Supply is
Materials management
In today’s view of business logistics in a firm, Outbound Logistics is a synonym of
Physical distribution
The contemporary view of logistics identifies that
Logistics is the new frontier of demand generation as a competitive weapon
According to Davis and Drum’s (2002) study, total order cycle time as one important measure of logistics customer service during 1992-2002 is about
7-9 days
One way to illustrate the importance of logistics is by examining the logistics cost % in an economy. In the last couple of years (2006-2008), what % of U.S. GDP has logistics accounted for?
about 10%
We have observed that logistics is more important in GDP in less developed economies such as China, India, and Malaysia (than developed economies such as U.S.), mainly bc
logistics infrastructure is usually inadequate while logistics management is relatively advanced in those countries
According to Michael Porter’s Generic Value Chain theory, the Primary value creating activities in a firm include
Logistics, operations, marketing and service
According to Michael Porter’s Generic Value Chain theory, the Support activities in a firm’s value creation include
Information Technology, accounting, and human resource management (HRM)
For American firms, the most typical effects of foreign outsourcing on logistics include
higher logistics but lower labor costs
The Primary decisions in the Logistics Planning Triangle include
Location strategy, inventory strategy and transport strategy to serve certain customer service goals
Marketers have begun to recognize the strategic value of place in the marketing mix, and the benefits resulting from high-quality logistical services. As a result which has been recognized as the interface activity between marketing and logistics?
Customer service
Organization Power has shifted over the past 2 decades plus in supply chains from
the manufacturer to the retailer
What is true about deregulation over the last 3 decades?
Deregulation empowers creativity and competition as it encourages new firm entry and pricing freedom
Corporate strategy should be formulated based on the assessment of needs, strengths and weakness of
a firm itself, and its customers, suppliers, and competitors
In the flow of logistics strategic planning, one should only start the integrated logistics planning after
setting the business goals/strategies and customer service requirements
In logistics planning, which level of decision does determining the number, size, and location of warehouses and plants belong to?
Strategic
According to class discussions, when is the best time to conduct logistical planning?
No distribution network currently exists.
There has been no re-evaluation of logistics strategy in 5 years.
When costs are changing rapidly, especially transport and inventory
Central to the scope and decision of logistics system is trade-off analysis based on the total system cost concept. If so, choosing a transportation service based on lowest rates available may not be the best logistics management approach, bc
it does not necessarily lead to lower logistics system cost
Jeris Products is evaluating 2 logistics systems for the distribution of its products. The cost of system 1 is $0.18/unit regardless of volume. System 2 cost is $0.22/unit regardless of volume. System 2 should be selected bc its higher cost indicates the quality of service provided is better
false
In general, improving transportation service through a faster mode will lead to
lower inventory-related costs but higher transport costs
In general, improving customer service level through inventory and transportation would lead to
higher inventory and transport costs but lower lost sales costs
In general, increasing the number of stocking points would lead to
Higher inventory-related costs but lower transport costs
In general, increasing the number of stocking points would provide a better customer service, and thus usually causes the revenue to
increase but at a slower rate gradually