Chapter 1

Question 1

When did supply chain management start to change?

Answer 1

In the mid-1980s

Question 2

Why did supply chain management start to change in the 1980s?

Answer 2

There was an overall shift in business in the philosophy that a businesses objectives should be to create customer value.

Question 3

What are the 5 aspects that lead to the change in perspective towards logistics and supply chain management?

Answer 3

• Reduced transport intensity
• Falling product prices
• Deregulation of transport
• Productivity improvements
• Emphasis on inventory reductions

Question 4

What change did Malcom McLean start in 1956?

Answer 4

The containerisation of shipments.

Question 5

What did Peter Drucker suggest in 1962?

Answer 5

That distribution was the last remaining high cost on businesses and therefore was something that should be worked to reduce.

Question 6

How many R’s are there for logistics?

Answer 6

8

Question 7

What are the 8 R’s?

Answer 7

Right Way, Right Product, Right Quantity, Right Quality, Right Place, Right Time, Right Customer & Right Cost.

Question 8

What is the 4 views, suggested by Larson and Halldorsson, of where Logistics and Supply Chain Management sit in relation to each other?

Answer 8

Traditionalist
Re-labelling
Unionist
Intersectionist

Question 9

What is the definition that leads to the unionist view seeming to be the correct one?

Answer 9

Logistics us a part of SCM.

SCM is a wider inter-company, boundary spanning concept than is the case with logistics.

Question 10

What are the applications of Log. & SCM to manufacturing and services?

Answer 10

They can be used to generate both cost savings and service enhancements.