Ch 9 Domestic US and Global Logistics

Question 1

why are logistics important? pick 5

Answer 1

moving goods from suppliers to buyers
moving WIP materials
moving finished goods to customers
returning or recycling goods
storing these items

Question 2

legal forms of transportation. pick 4

Answer 2

common carriers
contract carriers
exempt
private

Question 3

common carriers

Answer 3

must charge the same rates for the same service to all customers w/o discrimination

Question 4

contract carriers

Answer 4

not bound to serve the general public

serve specific customers under contractual agreements

Question 5

exempt carriers

Answer 5

exempt from regulation of services and rates if they transport certain exempt products

Question 6

ex. of exempt products

Answer 6

produce
livestock
coal

Question 7

private carrier

Answer 7

not subject to economic regulation & typically transports goods for the company owning the carrier

Question 8

what are the 5 basic modes of transpo.

Answer 8

motor
rail 
air
water
cyberspace

Question 9

motor carriers (trucks) highway strengths

Answer 9

short to medium hauls

flexibility to deliver

Question 10

rail carrier strengths

Answer 10

when the distance is long & the shipments are heavy or bulky

Question 11

air carrier strengths

Answer 11

for light, high value good over long distances

Question 12

water carrier strengths

Answer 12

for heavy, bulky, low value materials

inexpensive

Question 13

pipeline carrier strengths ex. Keystone XL pipeline

Answer 13

for materials in a liquid or gas state

Question 14

what are some inter modal transpo alternatives?

Answer 14

trailer-on-flatcar (TOFC) service
container -on-flatcar (COFC) or piggy back service
RO-ROs or roll-on-roll-off

Question 15

what does piggyback service refer to?

Answer 15

same containers placed on board containerships and freight airliners

Question 16

when to use value of service pricing

Answer 16

based on the competition level and the current volume of demand for each service

Question 17

what is FOB destination pricing

Answer 17

quoted price that includes transpo to the buyers location

Question 18

when to use FOB destination pricing

Answer 18

for high-value shipments, small shipments or when buyer has little transpo expertise

Question 19

3 different types of warehouses

Answer 19

consolidation
private
public

Question 20

define risk pooling

Answer 20

the relationship between the # of warehouses, inventory & customer service

Question 21

advantages of centralized warehousing

Answer 21

safety stocks and avg. inventory levels decrease

Question 22

disadvantage of centralized warehousing

Answer 22

delivery lead times increase - risk of late deliveries to customers
customer service levls decrease - issues such as traffic problems and weather delays

Question 23

advantages of decentralized warehousing systems

Answer 23

responsiveness & delivery service increase

Question 24

disadvantages of decentralized warehousing systems

Answer 24

warehousing operating & inventory costs increase

Question 25

capabilities of lean warehousing

Answer 25

emphasis on crossdocking

increased automation and assembly

Question 26

what are 3PLs

Answer 26

third party logistics that provide reliable & timely delivery required by SCM

Question 27

why are 3PLs used?

Answer 27

to move items into foreign locations effectively

Question 28

what are freight forwarders?

Answer 28

consolidating large # of small shipments tofill entire truck or rail cars to achieve highway transpo rates

Question 29

what are the impacts of logistics on environment sustainability?

Answer 29

reduction of empty miles to reduce carbon emission by ensuring trucks move loaded

Question 30

what are the most common logistics management software applications? pick 2

Answer 30

transpo management systems (TMS) 
warehouse management (WMS)

Question 31

describe several logistics intermediaries? pick 3

Answer 31

freight forwarders
shippers associations
intermodal marketing companies

Question 32

what are reverse logistics?

Answer 32

backwards flow of goods FROM customers in SC when goods are returned by a customer

Question 33

how do reverse logistics impact SCM?

Answer 33

financially

impact on how consumers view a product brand

Question 34

why are transpo management systems beneficial to users? pick 2

Answer 34

provide real time location tracking

uses tech such as RFID tags, Internet, GPS

Question 35

shippers associations

Answer 35

nonprofit cooperatives which arrange for members’ shipping

Question 36

intermodal marketing companies

Answer 36

purchase blocks of rail capacity and sell it to shippers