Chapter 2 LSCM

Question 1

Is responsible for the flow of materials through a supply chain

Answer 1

Logistics

Question 2

Is the time related positioning of resources, or the strategic management of the total supply chain.

Answer 2

Logistics

Question 3

Is a sequence of events intended to satisfy a customer

Answer 3

Supply Chain

Question 4

Two main aims of a Logistics managers

Answer 4

• The first is to move materials into, through, and out of their own organization as efficiently as possible.
• The second aim is to contribute to an efficient flow through the whole supply chain.

Question 5

The success of every organization depends on __________________

Answer 5

customer satisfaction

Question 6

The overall AIM OF LOGISTICS is to achieve ______________ and it must provide a _____________________

Answer 6

• high customer satisfaction
• high quality service with low or acceptable costs

Question 7

What are the 2 Current trends in logistics

Answer 7

• Improving communications
• Improving customer service

Question 8

Perhaps the most obvious change is the _________________

Answer 8

Improving communications
* increasing use of technology

Question 9

Two associated technologies have developed to support EDI

Answer 9

• Item Coding
• Electronic fund transfer (EFT)

Question 10

By the 1990’s the obvious next step had arrived with ___________________

Answer 10

Electronic data interchange (EDI)

Question 11

Logistics managers want low costs so that they remain competitive, and their users want to pay as little as possible

Answer 11

Improving customer service

Question 12

This is the total time between ordering materials and having them delivered and available for use.

Answer 12

Lead time

Question 13

The lead time should be as _________

Answer 13

close to zero as possible

Question 14

This makes information available to all parts of the supply chain at the same time

Answer 14

Synchronized material movement

Question 15

Another key factor for customer satisfaction is

Answer 15

Personalized products

Question 16

This is mass customization, which combines the benefits of mass production with the flexibility of customized products.

Answer 16

Personalized products

Question 17

What are the most significant trends in logistics

Answer 17

*Globalization
*Reduced number of suppliers
*Concentration of ownership
*Outsourcing
*Postponement
*Cross-docking
*Direct Delivery
*Other stock reduction methods
*Increasing environmental concerns
*More collaboration along the supply chain

Question 18

Improved communications and better transport mean that physical distances are becoming less significant. Organizations can become global in outlook, buying, storing, manufacturing, moving and distributing materials in a single, worldwide market.

Answer 18

Globalization

Question 19

In the past, organizations have used a large number of suppliers.
ensured that they got the best deal and maintained secure deliveries if one supplier ran into difficulties. The current trend, however, is to reduce the number of suppliers and develop long-term relationships with the best. As we shall see later, working closely with a small
number of organizations can bring considerable benefits.

Answer 19

Reduced number of suppliers

Question 20

More organizations realize that they can benefit from using specialized companies to take over part, or all, of their logistics. Using a third party for materials movement leaves an organization free to concentrate on its core activities.

Answer 20

Outsourcing

Question 21

Large companies can get economies of scale, and they have come to
dominate many supply chains.

Answer 21

Concentration of ownership

Question 22

manufacturers move finished goods out of production and store them in the distribution system until they are needed.

Answer 22

Postponement

Question 23

More customers are buying through the Web, or finding other ways of trading earlier in the supply chain, such as mail order or buying directly from manufacturers. . This has the benefits of
reducing lead times, reducing costs to customers, having manufacturers talking directly to their final customers, allowing customers access to a wider range of products, and so on. It also means that logistics has to move small deliveries quickly to final customers.

Answer 23

Direct delivery

Question 24

Traditional warehouses move materials into storage, keep them until needed, and then move them out to meet demand.
Co-ordinates the supply and delivery, so that goods arrive at the receiving area and are transferred straight away to a loading area, where they are put onto delivery vehicles.

Answer 24

Cross-docking

Question 25

Keeping stock is expensive, so organizations continually look for ways of reducing the amount stored in the supply chain. One approach uses just-in-time operations to co-ordinate activities and minimize stock levels. Another approach has vendor managed inventory, where suppliers manage both their own stocks and those
held further down the supply chain.

Answer 25

Other stock reduction methods

Question 26

There is growing concern about air pollution, water pollution,
energy consumption, urban development and waste disposal.
On the positive side, logistics is moving towards ‘greener’ practices. Operators use more energy efficient vehicles, control exhaust
emissions, reuse packaging, switch to environmentally friendly modes of transport, increase recycling through reverse logistics, add safety features to ships, develop brown-field sites, and so on.

Answer 26

Increasing environmental concerns

Question 27

Organizations in a supply chain increasingly recognize that
they have the same objectives – which are satisfied final customers.
This is an important point. It means that competitors are not other organizations within the same supply chain, but are organizations in other supply chains.

Answer 27

More collaboration along the supply chain

Question 28

Encouraging organizations to improve the management of their supply chains.

Answer 28

Pressures to improve logistics

Question 29

Customers are more __________and___________,_________ and___________

Answer 29

*more knowledgeable
* demand higher quality
* lower costs
* better service

Question 30

Competition is getting fiercer, and organizations must look ___________ to remain competitive

Answer 30

every opportunity

Question 31

There is __________ in the supply chain

Answer 31

changing power

Question 32

Other change in retail markets include the growth of ________, _________,_______,__________,________,__________ and ___________

Answer 32

24-hour opening, home deliveries, out-of-town
malls, retail parks, telephone and on-line shopping.

Question 33

are introducing new types of operation

Answer 33

Organizations

Question 34

are outsourcing peripheral activities and concentrating on their core operations.

Answer 34

Organizations

Question 35

International trade continues to _____

Answer 35

grow

Question 36

(where they concentrate on the end products)

Answer 36

product focus

Question 37

(where they concentrate on the way products are made)

Answer 37

process focus

Question 38

are increasing co-operation through alliances, partnerships, and other arrangements.

Answer 38

Organizations

Question 39

are recognizing the strategic importance of the supply chain.

Answer 39

Managers

Question 40

Attitudes towards transport are changing, because of __________,_______and___________

Answer 40

increased congestion on roads, concerns about
air quality and pollution

Question 41

This allowed remote computers to exchange data without going through any intermediaries.

Answer 41

electronic data interchange (EDI)

Question 42

which gives every package of material moved an identifying tag.

Answer 42

item coding