Chapter 7 Logistics Flashcards
The business function responsible for transporting and delivering products to the right place at the right time throughout the supply chain
Logistics
The function of planning, scheduling, and controlling activities related to mode,vendor, and movement of inventories into and out of an organization
Transportation
A process that describes the activities associated with the creation, maintenance, and fulfillment of customer orders
Deliver
What kind of activities encompass the receipt, validation, and creation of customer orders as well as scheduling order delivery, pick, pack, shipment and invoicing
Detail Activities
What are the 4 business functions of logistics?
Responsible for organizing and managing distribution networks
Requires access to information in real time
Requires large investments in infrastructure
Is often outsourced
What are the 3 types of logistics
Business
Military
Event
Which logistics type requires moving and storing goods throughout the entire supply chain
Business Logistics
Which logistics type requires supporting military neeeds
Military Logistics
Which logistics type requires organizing and deploying resources in preparation for an event
Event Logistics
Logistics works closely with ***** when it comes to planning the timing and quantity of inventory receipts throughout the supply chain
Operations
T/F- Logistics must understand the exact delivery schedule requirements
True
Go to 1 slide 10
What form of operations is described?
-long production runs
-economies of scale, stored excess inventory
-less frequent, large quantity inventory deliveries
Historical Manufacturing
What form of operations is described?
- shorter production runs
- more frequent, small quantity inventory deliveries
-less safety stock
-precise timing is essential
Just-In-Time (JIT) Manufacturing or Lean Manufacturing
Logistics works with which department to understand customer requirements, as well as storage and delivery needs
-right timing of shipments
-right quantity of shipments
Marketing
T/F- Logistics must ensure product integrity
True
Logistics assure materials are protected from damage
decisions impact the ability to handle the materials
and affects both marketing and operations
What am I referring to?
Packaging
Logistics is responsible for LARGE capital expenditures: transportation, warehousing, and inventory
This affects what part of the org?
Finance
- reducing inventory
- reducing investments in transportation and warehousing
- improving customer service with timely and accurate deliveries of goods since this should result in an increase in revenue
All of these can positively affect
Return on Assets (ROA)
What is ROA expressed as?
Percentage
What is the formula for ROA?
ROA= (Revenue-Expenses) / Assets
T/F- The higher the ROA percentage the better a company is using its assets
True
What 3 utilities does logistics provide SCM?
Place-ensures goods arrive at right place
Quantity- ensures correct quantities are delivered
Time- ensures goods arrive at the right time
the process of moving products upstream from the customer back toward manufacturers and suppliers is known as
Reverse Logistics
What are examples of reverse logistics?
- items customers did not want
-returns of damaged items
-overstock items
-recalled items
What are 3 things to consider when discussing reverse logistics?
- reverse flow does not directly add value
-ability to easily return goods is becoming an “order qualifier”
-items returned for different reasons may have different paths
Reverse logistics must do what 3 things?
-handle cash flows
- arrange warehousing, transport, sorting, inspecting, and storage
-abide by “green” laws
What are the 7 logistics tasks?
-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 center
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 logistics tasks am I describing?
-determine best location of storage facilities
-consider relation to manufacturing facilities, customers, and suppliers
Facility Location
What provides a centralized location that stores and organizes inventories before distribution
Warehouse
What are warehouses often referred to as?
Distribution Centers (DC’s)
T/F- Warehouses only enable efficient movement of goods on the inbound sides
False- Warehouses enable efficient movement of goods on both the inbound and outbound sides
JIT and lean manufacturing warehouses can be proximal to the manufacturing facility for frequent deliveries
And
Warehouses can be utilized to create product assortments
Just Know
What are examples of Nontraditional Warehouse Tasks?
-repair items
-add labels and price tags
-sequence items in preparation for the retail floor
- put garments on hangers
What term am I defining?
A popular form of warehouse sorting that attempts to move products “cross the dock” from inbound to outbound, without ever being stored
Cross-docking
What term am I describing by listing the requirements listed below
-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
What are some factors to consider when locating warehouses and distribution centers?
-proximity to customers or manufacturing facilities
- availability of infrastructure and access to transportation
- cost and availability of labor
- overall business climate including tax structure
What is the method to determine ware house location?
Factor Rating
A popular quantitative technique to help determine warehouse and distribution center location is known as
Factor Rating
What is the task at hand for factor rating?
Evaluates multiple location alternatives based on select factors
A commercial firm that provides one or more logistics functions on behalf of its customers on an outsourced basis for a fee. Is known as?
Third Party Logistics - 3PL
What is required to be 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.
3PL’s offer many traditional services. What 3 do they offer?
- Transportation management and brokerage
- Warehousing, consolidation, distribution and fulfillment (contract logistics)
- International logistics management (such as air and ocean freight forwarding and customs brokerage)
T/F- 3PLs play a more comprehensive strategic role as supply chain activities become more critical to the business
True
Got to slide 6 on logistics chapter 5
What are 4PL’s often referred to as?
Lead Logistics Providers
Which logistics provider manage all aspects of a supply chain including resources, technology, and infrastructure
4PL’s
T/F- 3PL’s manage 4PL’s on behalf of their clients and serve as a single point of contact.
False- 4PL’s manage 3PL’s on behalf of their clients and serve as a single point of contact.
What are the 4 ways 4PLs differ from 3PLs?
1) 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
2) The 4PL organization is an interface between client and multiple logistics service providers
3) Ideally, all aspects of the client’s supply chain are managed by the 4PL organization
4) It is possible for a major 3PL organization to form a 4PL organization within its existing structure
Define the term the use of two or more different carrier modes in the
movement of a shipmen
Intermodal Transport ( APICS defn)
Define the term combined use of multiple modes of transportation for product delivery
Multimode ( Sanders defn)
A measurement used to describe the carrying capacity of a cargo ship or a terminal’s handling capacity.
TEU
TEU stands for
Twenty foot equivalent unit
T/F- One TEU equals a standard 20 ft. x 8 ft. x 8 ft. (length x width x height) shipping container
True
FEU stands for
Forty-foot equivalent unit
A measure of container capacity that is equivalent to two
20-foot equivalency units; that is, a unit equivalent to 40
feet long, 8 feet wide, and approximately 8 feet high is known as
FEU
FOB stands for
Free on Board
A shipping term which indicates at what point respective obligations, costs, and risk (i.e. –contractual terms) involved in the delivery of goods
shift from the seller to the buyer
FOB
A freight term indicating that the seller is responsible for the cost, the marine insurance, and the freight charges on an ocean shipment of goods
CIF
What does CIF stand for
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
Broker
The process of a transportation vehicle returning from the
original destination point to the point of origin
Backhauling
The return of an empty transportation container to its point of
origin
Deadhead
Motor carrier operation that reflects transporting between cities or states (long distance)
Over-the-road
TOFC stands for
trailer on flatcar or “piggyback”
COFC stands for
container on flat car
