Chapter 16- Logistics and Supply-Chain Management Flashcards
What are the two major phases in the movement of materials?
1) Materials management- moving the raw materials, parts and supplies throughout the firm.
2)Physical distribution- distributing the finished goods from suppliers to customers.
Logistics are important to make this process as efficient as possible, while maintaining service goals and requirements.
What is the systems concept?
The idea that materials flow throughout a logistics channel and must be considered in relation to each other.
What is the total cost concept?
The decision framework that measures logistical activities in terms of cost to reach optimization. objective is to maximize after-tax profits instead of minimizing costs.
What is the trade-off concept?
A decision paradigm that links all decisions
What do the three concepts, systems, total cost and trade off, lead to?
The supply-chain management, which is the result of value-adding activities that connect the supply side with its demand side.
What is an extended enterprise?
When a company considers all parts of the supply-chain to be a single organization in order to maximize efficiency and effectiveness.
What is a logistics platform?
It is determined by the location’s ease and convenience for market reach under favorable conditions. How do you get your goods to a specific location, and then once they are there how do you distribute them? Government planning is important when exporting.
What is a land bridge? Sea bridge?
Land- the transfer of freight through different modes of transportation on land.
Sea- the transfer of freight through different modes of transportation at sea.
What are intermodal movements?
The transfer of freight from one mode of transportation to another. Land and sea bridges allow for intermodal movements.
What is ocean shipping, and what are the three different types of service?
Ocean shipping is the forwarding of freight through ocean carriers.
1) Liner service- characterized by regularly scheduled passage on established routes.
2) Bulk service- ocean shipping provided on contract, either for individual voyages or for pro-longed periods of time.
3) Tramp service- shipping for irregular routes, requires scheduling.
What are the two types of cargo a vessel can carry?
1) Container ships- standardized containers designed for ease in intermodal transportation
2) Roll-on-roll-off (RORO)- vessels that carry vehicles with containers that can be driven off to their destination.
What are four things a manager must consider when deciding what mode of transportation to use?
1) Transit time
2) Reliability
3) Cost
4) Non-economic factors: tracking and preferential policies (government policies that favor certain carriers– i.e. maybe better to use government carrier than a commercial carrier to maintain good relationships in that country and establish a better future for your firm’s presence in a country).
What are some types of export documentation?
- Export declaration- a shipping document detailing the type, destination, shipping, timing, and value of an export shipment.
- Bill of lading- a contract between an exporter and a carrier indication that the carrier has accepted responsibility for the goods and will provide transportation in return for payment.
- Straight bill of lading- a nonnegotiable bill of lading usually used in prepaid transactions in which the transported goods involved are delivered to a specific individual or company.
- Shipper’s order- a negotiable bill of lading that can be bought, sold, or traded while the subject goods are still in transit and that is used or letter of credit transactions.
- Commercial invoice- a bill or transported goods that describes the merchandise and its total cost and lists the addresses of the shipper and seller and delivery and payment terms.
- Freight forwarders- specialists in handling international transportation by contracting with carriers on behalf of shippers.
Ex-works (EXW)?
price quotes that apply only at the point of origin; the seller agrees to place the goods at the disposal of the buyer at the specified place on a date or within a fixed period (quoted price). All other charges are for the account of the buyer.
Free carrier (FCA)?
applies only at a designated inland shipping point. Seller is responsible for loading goods into the means of transportation; buyer is responsible for all subsequent expenses.
