Chapter 8: Logistics

Question 1

According to the council of supply chain management professionals (cscmp), “that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”

Answer 1

Logistics management

Question 2

Performing activities in a manner that meet the needs of the present without compromising the ability of future generations to meet their needs

Answer 2

Sustainability

Question 3

A shipment made directly, with no additional stops, changing of trucks, or loading of additional cargo

Answer 3

Direct truck shipment

Question 4

A smaller shipment, often combined with other loads to reduce costs and improve truck efficiencies

Answer 4

Less than truckload (LTL) shipment

Question 5

A transportation solution that seeks to exploit the strengths of multiple transportation modes through physical, information, and monetary flows that are as seamless as possible

Answer 5

Multimodal solution

Question 6

A specialized rail car the size of a standard truck trailer that can be quickly switched from rail to ground transportation by changing the wheels

Answer 6

Roadrailer

Question 7

Any operation that stores, repackages, stages, sorts, or centralizes goods or materials. Organizations use this to reduce transportation costs, improve operational flexibility, shorten customer lead times, and lower inventory costs

Answer 7

Warehousing

Question 8

A form of warehousing that pulls together shipments from a number of sources (often plants) in the same geographic area and combines them into larger—and hence more economical— shipping loads

Answer 8

Consolidation warehousing

Question 9

A form of warehousing in which large incoming shipments are received and then broken down into smaller outgoing shipments to demand points in a geographic area. This combines the economies of large incoming shipments with the flexibility of smaller local shipments

Answer 9

Cross-docking

Question 10

A specialized form of cross-docking in which the incoming shipments are from a single source or manufacturer

Answer 10

Break-bulk warehousing

Question 11

A form of warehousing in which strategically placed hubs are used as sorting or transfer facilities. The hubs are typically located at convenient, high traffic locations. The “spokes” refers to the routes serving the destinations associated with the hubs

Answer 11

Hub and spoke system

Question 12

A type of truck trailer that is half the size of a regular truck trailer

Answer 12

Pup trailer

Question 13

A form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment

Answer 13

Postponement warehousing

Question 14

A form of warehousing in which a wide array of goods is held close to the source of demand in order to ensure short customer lead times

Answer 14

Assortment warehousing

Question 15

A form of warehousing that attempts to position seasonal goods close to the marketplace. At the end of each season, the goods are either liquidated or moved back to a more centralized location

Answer 15

Spot stock warehousing

Question 16

A system that includes the equipment and procedures needed to move goods within a facility, between a facility and a transportation mode, and between different transportation modes (ex/ ship to truck transfers)

Answer 16

Material handling system

Question 17

From a logistics perspective, the way goods and materials are packed in order to facilitate physical, informational, and monetary flows through the supply chain

Answer 17

Packaging

Question 18

A functional strategy which ensures that an organization’s logistics choices—transportation, warehousing, information systems, and even form of ownership—are consistent with its overall business strategy and support the performance dimensions that targeted customers most value

Answer 18

Logistics strategy

Question 19

A transportation service provider that handles shipments on a case by case basis, without the need for long-term agreements or contracts

Answer 19

Common carrier (public carrier)

Question 20

A transportation service provider that handles shipments for other firms based on long term agreements or contracts

Answer 20

Contract carrier

Question 21

A service firm that handles all of the logistics requirements for other companies

Answer 21

Third-party logistics provider (3PL)

Question 22

A term used to refer to the timely, error-free provision of a product or service in good condition

Answer 22

Perfect order

Question 23

The cost of a product plus all costs driven by logistics activities, such as transportation, warehousing, handling, custom fees, and the like

Answer 23

Landed cost

Question 24

An agent who serves as an intermediary between an organization shipping a product and the actual carrier, typically on international shipments

Answer 24

Freight forwarder

Question 25

An agent who handles customs requirements on behalf of another firm. In the United States, this agent must be licensed by the Customs Service

Answer 25

Customs broker

Question 26

According to APICS, “a complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling.”

Answer 26

Reverse logistics system

Question 27

A logistics decision modeling technique that attempts to identify the “best” location for a single warehouse, store, or plant, given multiple demand points that differ in location and importance

Answer 27

Weighted center of gravity method

Question 28

A type of mathematical model used when the user seeks to optimize some objective function subject to some constraints

Answer 28

Optimization model

Question 29

A quantitative function that an optimization model seeks to optimize (ex/ maximize or minimize)

Answer 29

Objective function

Question 30

Within the context of optimization modeling, a quantifiable condition that places limitations on the set of possible solutions. The solution to an optimization model is acceptable only if it does not break any of this

Answer 30

Constraint

Question 31

A specialized form of an optimization model that attempts to assign limited capacity to various demand points in a way that minimizes costs

Answer 31

Assignment problem

Question 32

Within the context of optimization modeling, variables that will be manipulated to find the best solution

Answer 32

Decision variables