Chapter 7 Assessment Blueprint Flashcards
Define the term
business function responsible for transporting and delivering products to the right place at the right time and the right quantity throughout the supply chain (movement & storage of product inventories throughout the chain)
Logistics
T/F- Logistics connects the organization to both its customers (downstream) and its suppliers (upstream)
True
T/F- Logistics requires large investments in infrastructure (IT, vehicles, material handling equipment) – this is why many choose to outsource logistics activities to a 3PL
True
When logistics connects to its customers which way is the stream going?
Downstream
When logistics connects to its suppliers which way is the stream going?
Upstream
What are 4 functions logistics include?
- Organizing & managing the distribution network
- Determining/optimizing locations of warehouses, distributions centers, and manufacturing plants
- Coordinating modes of transportation
- Design & management of operations throughout the network for efficient storage & QUICK movement of goods
Which evolution of logistics is focused on the movement and storage of goods throughout the supply chain
Business Logistics
Which evolution of logistics is focused on supporting military needs?
Military Logistics
Which evolution of logistics involves organizing and deploying resources in preparation for an event
Event Logistics
Th impact of logistics on the organization will effect which section:
logistics interfaces closely with ops through planning the amount of inventory that must
be received at various points throughout the supply chain AND the timing of those receipts (deliveries)
Operations
Impact of logistics on the organization will effect which section: logistics works with *** to understand customer requirements, as well as storage and delivery needs. Must ensure that product is available when needed!
Marketing
Impact of logistics on the organization will effect which section: significant impact on moving/handling product, protects items from being damaged
Packaging
Impact of logistics on the organization will effect which section: logistics is responsible for large capital expenses (transportation, warehousing, inventory); performance can be assessed directly with ROA (return on assets) and ROI (return on investment) no calculations expected
Finance
T/F- Logistics supports Supply Chain Management by being responsible for one of the flows in SCM which is moving of goods or inventory
True
Logistics provides SCM with what three utilities?
Place
Quantity
Time
The process of moving products UPSTREAM from customer back towards manufactures and
suppliers; it’s non-value added and challenging; often an order qualifier
Reverse Logistics
What are the 7 logistics task?
Transportation
Storage
Material Handling
Packaging
Inventory Control
Order Fulfillment
Facility Location
What logistics tasks moves products throughout the supply chain, have a high cost, and must decide mode of transportation consider required speed, security, and product characteristics/ requirements
Transportation
What logistics tasks am I describing?
- where goods will be stored
- # of warehouses and distribution centers
- amount of inventory to store at each cente
Storage
What logistics tasks am I describing?
-loading and unloading goods from vehicles
- placement and order picking
- moving goods throughout a facility
- decide degree of automation vs. manual labor
**automated storage and retrieval systems (ASRS)
Material Handling
What logistics tasks am I describing?
- protect products during transport and storage
- compatible with material handling equipment
- compatible with mode of transportation
Packaging
What logistics tasks am I describing?
- manage quantities of inventory
- arrange for timely replenishments
- maintain accurate counts of inventory
- electronic tracking and “cycle counting”
Inventory Control
What logistics tasks am I describing?
- pick and pack order
- arrange for transportation
- ship order
- assure lead time is not exceeded
Order Fulfillment
What are the 6 modes of transportation?
Truck
Water
Air
Rail
Pipeline
Multimode
Define the term- combined use of multiple modes of transportation for product delivery
Multimode
Mode of Transportation by rail has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a railway?
Fixed Cost- High (equipment, terminals, tracks)
Variable Cost- Low (can transport large tonnage)
Mode of Transportation by truck has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a truck?
Fixed Cost- Low( highways publicly supported)
Variable Cost- Medium ( fuel, maintenance, labor)
Mode of Transportation by water has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of water?
Fixed Cost- Medium ( ships and equipment)
Variable Cost- Low ( can transport large tonnage)
Mode of Transportation by pipeline has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a pipeline?
Fixed Cost- High ( right-of-way, construction)
Variable Cost- Low ( no labor cost)
Mode of Transportation by air has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a air?
Fixed Cost- High ( aircraft, handling, cargo)
Variable Cost- High ( fuel, labor, maintenance)
Multimode mode of transportation can also be called
Intermodal
When several modes are often combined for
optimal cost and customer service by
leveraging the advantages of each this mode of transportation is called
Multimode
Who are the top 5 container ports in the world?
Shanghai, China
Singapore
Ningbo-Zhoushan, China
Shenzhen, China
Guangzhou Harbor, China
What is the top US port?
Los Angeles
What is the top US port in the east coast?
New York- New Jersey
Top 5 in the US
LA
Long Beach
New York- New Jersey
Savannah
What is Savannah’s port ranked in the US
4th
How are the North American Railroad Systems separated by class?
Revenues
Class 1 KNOW
revenue> $900 million (adjusted annually)
is regulated by the Surface Transportation Board (STB)
7 freight rail companies currently established
- BNSF, Canadian National, Canadian Pacific, CSX, Kansas City Southern, Norfolk Southern, Union Pacific
Account for 68% of freight rail mileage, 88% of employees, and 94% of revenue
Class 2 (Regional) KNOW
Revenue> (greater than) 40.4 million and < (less than) 900 million
Class 3 (Local) KNOW
Revenue< (less than) 40.4 million
TOFC stands for?
Trailer on Railroad Flatcar or “piggyback”
COFC stands for?
Container on railroad flatcar
the practice of carrying semi-trailers on railroad flatcars is known as
TOFC
a container that is transported on a rail flatcar is known as?
COFC
What is the difference between international shipping containers and domestic shipping containers?
Domestic shipping containers are generally larger, while international containers are standard TEU’s
Which shipping container has standard lengths of 20 feet (1-TEU – twenty foot equivalent unit) and 40 feet (2- TEU’s or sometimes referred to as FEU – forty-foot equivalent unit)
International Shipping Containers
What are the dimensions of a TEU?
20’ long x 8’ wide x 8’ high
Which shipping container can be described as generally larger than other shipping containers and the standard lengths of the container is 48 feet and 53 feet
Domestic Shipping Containers
What are the measurements of domestic shipping containers?
53’ long x 8’6” wide x 9’ 6”
What does LTL stand for?
Less than truckload
T/F- Freight doesn’t require use of an entire trailer on an LTL
True
What does TL stand for?
Truckload or Full Truckload
T/F- Truckload freight shipments need the entire space (cube out) or weight limit ( weight out) of a truck’s trailer
True
T/F- Warehouses provide a centralized location that stores and organizes inventories before distribution
True
Define the term- provides a centralized location that stores and organizes inventories before distribution
Warehouses
Warehouses are often referred to as
Distribution Centers
Warehouses enable efficient movement of goods on both the inbound and outbound sides
Just Know
T/F- JIT and lean manufacturing warehouses can be proximal to the manufacturing facility for frequent deliveries and Warehouses can be utilized to create product assortments
True
What are some non traditional warehouse tasks?
-repairing items
- adding labels and price tags
-sequencing items in preparation for the retail floor
- put garments on hangers
A popular form of warehouse
sorting that attempts to move products “cross the dock” from inbound to outbound, without ever being stored
Cross-Docking
Based off of the characters what term am I describing?
- arriving larger shipments are broken into smaller shipments for local delivery
- requires precise timing and coordination
- information technology tracks inventories
- especially used in retail industry
Cross-Docking
FIGURE 7.7 Explain Cross-Docking
Manufacturer A,B and C flow toward the warehouse
The warehouse then flows toward the retailers A,B,and C
Cross Docking Terminal can be described as
Inbound (receiving- sorting- shipping) to Outbound
What are you considering when you look at these factors?
- proximity to customers or manufacturing facilities
– availability of infrastructure and access to transportation
– cost and availability of labor
– overall business climate including tax structure
Facility Location
What is the method to determine warehouse location?
Factor Rating
A popular quantitative technique to help determine warehouse and distribution center location
- evaluates multiple location alternatives based on several factors
Factor Rating
T/F- Multimode or Intermodals is commonly used for 4PL providers
False- Common for companies to use third-party-
logistics (3PL) providers
Which shipping term indicates at what point the respective obligations, costs, risk (i.e. – contractual terms) involved in the delivery of goods SHIFT from the seller TO the buyer
FOB- Free On Board
Which freight term indicating the seller is responsible for the cost, marine insurance, and the freight charges on an OCEAN shipment of goods
CIF- Cost, Insurance, Freight
An organization that helps match carriers to freight, adding value by helping the shipper and carrier obtain better rates and more fully utilize their capacity and equipment is known as?
Broker
The process of a transportation vehicle returning from the original destination point to the point of origin is known as
Backhauling
The return of an empty transportation container to its point of origin can be known as
Deadhead
A way to measure the transportation of freight; Heavily used in rail and ship transportation modes; weight being transported (in tons) x distance traveled (in miles) is known as
Ton-mile
Motor carrier operation that reflects transporting between cities or states (long distance) is known as
Over-the-road
Which logistics provider is a commercial firm that provides one or more logistics functions on behalf of its customers on an outsourced basis for a fee
Third-Party Logistics (3PL)
How do you become a 3PL?
the logistics service provider
(LSP) must predominantly operate a business
that moves, stores or manages products or
materials on behalf of its customer, in some
manner, without taking ownership of such
products or materials
The use of two or more different carrier modes in the movement of a shipment is known as?
Intermodal Transport
Combined use of multiple modes of transportation for product delivery is known as
Multimode
T/F- The 4PL organization is often a separate entity formed by a joint venture or other long-term contract between a client and one or more partners
True
T/F- The 4PL organization is an interface between client and multiple logistics service providers
True
T/F- Ideally, all aspects of the client’s supply chain are managed by the 4PL organization
True
T/F- It is impossible for a major 3PL organization to form a 4PL organization within its existing structure
False- It is possible for a major 3PL organization to form a 4PL organization within its existing structure
What logistics provider manages all aspects of a supply chain including resources, technology, and
infrastructure
4PL’s ( Lead Logistics Providers)
T/F- 4PL’s manage 3PL’s on behalf of their clients
and serve as a single point of contact
True
T/F- 4PL’s are responsible for achieving effective logistics integration where both inter- and intrafirm activities are integrated to enhance customer satisfaction and provide a competitive advantage
False- 3PL’s are
What are a few examples of how 3PL’s provider traditional services?
Transportation Management
Warehousing
International Logistics Management
Brokerage
Distribution and Fulfillment
Consolidation
The larger the amount shipped at one time the lower the per unit cost
Economies of Scale
- avoid less than truck load shipments (LTL)
The longer the distance moved at one time, the lower the per unit cost
Economies of Distance
