3: LOGISTICS FUNDAMENTALS

Question 1

Byproducts

Answer 1

In the context of APICS and supply chain, byproducts refer to materials or products that are produced as a result of the manufacturing process, but are not the primary intended output. These materials may be sold or used as raw materials for other products.

Question 2

Disposal

Answer 2

In the context of APICS and supply chain, disposal refers to the process of getting rid of waste materials, excess inventory, or end-of-life products in a safe and environmentally responsible manner.

Question 3

End-of-life management

Answer 3

In the context of APICS and supply chain, end-of-life management refers to the process of managing and disposing of products that have reached the end of their useful life, including activities such as recycling, repurposing, and disposal.

Question 4

Fourth-party logistics (4PL)

Answer 4

In the context of APICS and supply chain, fourth-party logistics (4PL) refers to a type of logistics provider that acts as a strategic partner, providing comprehensive logistics management services and acting as an intermediary between other logistics providers and a company.

Question 5

Friction

Answer 5

In the context of APICS and supply chain, friction refers to any obstacles or resistance that impede the flow of goods, services, or information within a supply chain.

Question 6

Global positioning systems (GPS)

Answer 6

In the context of APICS and supply chain, global positioning systems (GPS) are satellite-based navigation systems that can be used to track the location and movement of assets, such as vehicles or containers, in real-time.

Question 7

Logistics

Answer 7

In the context of APICS and supply chain, logistics refers to the process of planning, organizing, and managing the movement of goods, services, and information from the point of origin to the point of consumption. It includes activities such as transportation, warehousing, inventory management, and distribution.

Question 8

Maturity

Answer 8

In the context of APICS and supply chain, maturity refers to the level of development, sophistication, and effectiveness of a supply chain or logistics system. It can be used to evaluate the performance and potential of a supply chain and identify areas for improvement.

Question 9

Outsourcing

Answer 9

In the context of APICS and supply chain, outsourcing refers to the practice of contracting with an external party for the provision of goods, services, or processes that are typically performed by internal staff. It is often used as a cost-saving or efficiency-enhancing strategy.

Question 10

Postponement centers

Answer 10

In the context of APICS and supply chain, postponement centers refers to facilities or logistics hubs where products are stored and held in a semi-finished state, allowing for customization and/or localization to be performed closer to the point of consumption.

Question 11

Recover

Answer 11

In the context of APICS and supply chain, recover refers to the process of taking steps to retrieve, restore, or reclaim goods, services, or materials that have been lost, damaged, or compromised in some way.

Question 12

Recycle

Answer 12

In the context of APICS and supply chain, recycle refers to the process of converting used materials or waste into new products, reducing the need for virgin materials, and reducing the amount of waste sent to landfills.

Question 13

Reduce

Answer 13

In the context of APICS and supply chain, reduce refers to the process of decreasing the use of resources, materials, or energy in order to minimize environmental impact and costs.

Question 14

Responsible landfill

Answer 14

In the context of APICS and supply chain, a responsible landfill refers to a waste disposal facility that is operated in an environmentally sound manner and in compliance with regulations. It may include features such as liners to prevent contamination of groundwater, leachate collection systems, and the recovery of methane gas.

Question 15

Reuse

Answer 15

In the context of APICS and supply chain, reuse refers to the process of using a product or material more than once, rather than discarding it after a single use. This can help to conserve resources, reduce waste, and lower costs.

Question 16

Reverse logistics

Answer 16

In the context of APICS and supply chain, reverse logistics refers to the process of managing the return of goods, services, or materials from the point of consumption to the point of origin. This may include activities such as return processing, repair, refurbishment, and disposal.

Question 17

Reverse logistics hierarchy

Answer 17

In the context of APICS and supply chain, the reverse logistics hierarchy is a framework that prioritizes the most sustainable options for managing returned or end-of-life products. The options are generally arranged in the order of: recover, remanufacture, refurbish, repair, reuse and recycle, dispose.

Question 18

Reverse supply chain

Answer 18

In the context of APICS and supply chain, a reverse supply chain refers to the logistics and management activities associated with the return and recovery of goods, services, or materials from the point of consumption to the point of origin. This may include activities such as return processing, repair, refurbishment, and disposal.

Question 19

Service contracts

Answer 19

In the context of APICS and supply chain, service contracts refer to agreements between a company and a service provider, in which the provider commits to providing a specified level of service or maintenance for a specified period of time in exchange for payment.

Question 20

Stock-keeping unit (SKU)

Answer 20

In the context of APICS and supply chain, a stock-keeping unit (SKU) is a unique identifier assigned to a specific product or product variant, which is used for inventory management and tracking.

Question 21

Subcontractor

Answer 21

In the context of APICS and supply chain, a subcontractor refers to an external party that is contracted to perform a specific task or provide a specific service on behalf of the primary contractor.

Question 22

Third-party logistics (3PL)

Answer 22

In the context of APICS and supply chain, third-party logistics (3PL) refers to a type of logistics provider that offers a range of services such as transportation, warehousing, and inventory management, on a contract basis, to other companies.

Question 23

Total cost concept

Answer 23

In the context of APICS and supply chain, the total cost concept refers to an approach to decision-making that takes into account all of the costs associated with a particular activity or decision, including both direct and indirect costs.

Question 24

Total waste management

Answer 24

In the context of APICS and supply chain, total waste management refers to a comprehensive approach to waste management that considers all aspects of waste reduction, recycling, and disposal, with the goal of minimizing environmental impact and maximizing resource efficiency.

Question 25

Value proposition

Answer 25

In the context of APICS and supply chain, a value proposition refers to the unique benefits and value that a company offers to its customers, stakeholders, or shareholders. It can include elements such as product or service features, price, quality, and customer service.

Question 26

Waste exchange

Answer 26

In the context of APICS and supply chain, a waste exchange is a system in which businesses or individuals can trade or exchange materials or products that they no longer need or want, with others who can use them. This can help to reduce waste and conserve resources.

Question 27

Waste hierarchy

Answer 27

In the context of APICS and supply chain, the waste hierarchy is a framework that prioritizes the most sustainable options for managing waste. The options are generally arranged in the order of: reduce, reuse, recycle, recover, and dispose. The waste hierarchy is a way to ensure that materials are used in the most sustainable way.