Chapter 1 LSCM

Question 1

responsible for this movement.

Answer 1

Logistics

Question 2

responsible for the transport and
storage of materials

Answer 2

Logistics

Question 3

(Spectrum of Products)

Answer 3

• Largely goods
• Balance of goods and services
• Largely services

Question 4

Largely goods (Spectrum of Products)

Answer 4

• Car Makers
• House builders
• Bespoke tailor

Question 5

Balance of goods and services (Spectrum of Products)

Answer 5

Fast food restaurant

Question 6

Largely services (Spectrum of Products)

Answer 6

• Health service
• Sea cruise
• Education

Question 7

that create and deliver the products.

Answer 7

operations

Question 8

(Operations creating outputs)

Answer 8

• Inputs
• Operations
• Outputs

Question 9

Inputs (Operations creating outputs)

Answer 9

• People
• Buildings
• Raw materials
• Equipment
• Information
• Investment

Question 10

Operations (Operations creating outputs)

Answer 10

• Manufacture
• Serve
• Supply
• Transport
• Sell
• Train

Question 11

Outputs (Operations creating outputs)

Answer 11

• Goods
• Services
• Profit
• Waste
• Wages

Question 12

Cycle of Supply and Demand

Answer 12

Customers → create → Demand for products
→passed to →(Other inputs) Operations (Other outputs)→arrange→ Supply of products→ passed to→ Customers

Question 13

is the function responsible for the flow of materials from suppliers into an organization,
through operations within the organization, and then out to customers.

Answer 13

LOGISTICS

Question 14

Moving materials into the organization from suppliers

Answer 14

inbound or inward logistics

Question 15

moving
materials out to customers

Answer 15

outbound or outward logistics

Question 16

moving materials within the organization

Answer 16

materials management

Question 17

are all the things that an organization moves to create its products.

Answer 17

MATERIALS

Question 18

These materials can be
__________ (such as __________) and __________ (such as __________).

Answer 18

• both tangible (such as raw materials)
• intangible (such as information)

Question 19

is responsible for the movement and storage of materials as they move through the supply
chain.

Answer 19

Logistics

Question 20

Activities of Logistics

Answer 20

● Procurement or purchasing
● Inward transport or traffic
● Receiving
● Warehousing or stores
● Stock control
● Order picking
● Materials handling
● Outward transport
● Physical distribution management
● Recycling, returns and waste disposal
● Location
● Communication.

Question 21

The flow of materials through an organization is usually initiated when procurement sends a purchase order to a supplier.

Answer 21

Procurement or purchasing.

Question 22

Actually moves materials from suppliers to the organization’s receiving area.

Answer 22

Inward transport or traffic

Question 23

makes sure that materials delivered correspond to the order, acknowledges receipt, unloads delivery vehicles, inspects materials for damage, and sorts them.

Answer 23

Receiving

Question 24

moves materials into storage, and takes care of them until they are needed

Answer 24

Warehousing or stores

Question 25

sets the policies for inventory. It considers the materials to store, overall investment, customer service, stock levels, order sizes, order timing and so on.

Answer 25

Stock control

Question 26

finds and removes materials from stores.

Answer 26

Order picking

Question 27

moves materials through the operations within an organization.

Answer 27

Materials handling

Question 28

takes materials from the departure area and delivers them to customers (with concerns that are similar to inward transport).

Answer 28

Outward transport

Question 29

is a general term for the activities that deliver finished goods to
customers, including outward transport.

Answer 29

Physical distribution management

Question 30

Even when products have been delivered to customers, the
work of logistics may not be finished.

Answer 30

Recycling, returns and waste disposal.

Question 31

Some of the logistics activities can be done in different locations.

Answer 31

Location.

Question 32

Alongside the physical flow of materials is the associated flow of information

Answer 32

Communication.

Question 33

is the process of planning, implementing and controlling the efficient, cost-effective flow and
storage of raw materials, in-process inventory, finished goods and related information from point of
origin to point of consumption for the purpose of conforming to customer requirements.

Answer 33

Logistics

Question 34

You can see logistics in every __________, and it obviously comes in a __________________________. The activities can be
arranged in ___________ within an organization, and there is certainly no _____________________

Answer 34

• organization
• huge number of different forms
• many ways
• single ‘best’ arrangement.

Question 35

might have one person looking after everything.

Answer 35

small organization

Question 36

might have one department with different sections for purchasing, transport, stock control, distribution,
and so on.

Answer 36

medium sized organization

Question 37

might have a logistics division employing thousands of people and
running huge transport fleets.

Answer 37

large organization