E2, Ch 15: Logistics, Distribution Mg

Question 1

the arrow in the FedEx logo stands for…

Answer 1

speed and accuracy

Question 2

vision of FedEx

Answer 2

information about the package is as important as the delivery of the package itself

Question 3

logistics

Answer 3

art and science of obtaining, producing, distributing material and product in proper place and quantities

Question 4

logistics is the flow of … (3)

Answer 4

information
money
documentation

Question 5

trucks/18-wheelers offer…

Answer 5

great flexibility

Question 6

LTL

Answer 6

less than truckload
smaller shipments

Question 7

FTL

Answer 7

full truckload
shipments that fill entire trucks

Question 8

common carrier/parcel

Answer 8

a company in business of transporting goods for other companies
ex. USPS, FedEx

Question 9

private transportation mode

Answer 9

company uses its own trucks
ex. Amazon

Question 10

shipping transportation mode

Answer 10

high capacity and low cost, but slow
primary form of imports and exports

Question 11

what will happen if the strike at the ports persist

Answer 11

backlog of containers
prices temporarily increase

Question 12

planes as a transportation mode

Answer 12

fast but expensive

Question 13

rail/train as a transportation mode

Answer 13

slowest but low cost

Question 14

pipeline as a transportation mode

Answer 14

high specialized
liquids, gases, solids in slurry form
high flammable or could be deadly

no packaging needed, costs per mile slow

Question 15

hand delivery

Answer 15

last step in many supply chains

Question 16

warehouse

Answer 16

goods stored for future use

Question 17

distribution center

Answer 17

warehouse that performs additional services for processing orders

Question 18

cross-docking

Answer 18

approach where large incoming shipments are broken into small shipments for local delivery

ex. usually have a warehouse w/ a dock on both sides;
one side brought into fulfillment area; on other side they are loaded onto the trucks for delivery

Question 19

hub and spoke

Answer 19

systems combining ideas of consolidation and cross-docking

Question 20

fulfillment centers

Answer 20

distribution centers designed to handle small orders to help prepare for shipment to individual retail customers

do cross-docking and are considered a warehouse and distribution center all in one

Question 21

item storage in a distribution facility can be based on a ________ _______

Answer 21

locator system

Question 22

proximity to customers

Answer 22

makes rapid delivery easier

Question 23

business climate

Answer 23

can include presence of similar sized businesses, businesses in same industry, and other foreign companies

Question 24

total costs

Answer 24

objective is to minimize overall cost

Question 25

tariffs

Answer 25

special type of tax on the imports/exports of a country used by govt to generate revenue

Question 26

infrastructure

Answer 26

adequate road, rail, air, etc transportation along w/ energy and telecommunications

Question 27

quality of labor

Answer 27

educational and skill levels must match needs

Question 28

proximity to suppliers

Answer 28

supports lean production

Question 29

other facilities

Answer 29

location of other facilities can influence location decision

Question 30

free trade zones

Answer 30

closed facility where foreign goods won’t be subject to normal customs requirements

Question 31

political risk

Answer 31

risks in both country of location and host country
ex. presidential election

Question 32

govt barriers

Answer 32

barriers in many countries are being removed

Question 33

trading blocs

Answer 33

firms location w/in a bloc to take advantage of new markets
CLUSTERING

Question 34

environmental regulation

Answer 34

must be included in decisions

Question 35

host community

Answer 35

host community’s interest is part of evaluation process

some areas have strong sense of community, a new company randomly coming in may be challenged

Question 36

competitive advantage

Answer 36

is there an advantage in this location

Question 37

choosing location: factor rating system

Answer 37

most widely used;
1. list of factors and sites developed
2. each site rated against each factor on a numerical scale
3. site with most points on a weighted scale is selected

Question 38

choosing location: centroid method

Answer 38

used for location single facilities, considering distances and volumes between and of existing facilities
plots coordinates on a plane*refer to slides

centroid point is the best location, therefore choose the closest

Question 39

most important decision point in locating a service facility

Answer 39

proximity to customers WHILE maximizing profits