Lecture 4

Question 1

International logistics

Answer 1

All functions concerned with movement of materials on a global scale

Question 2

Third-party logistics company

Answer 2

An outside company used to manage all or part of another company’s product delivery operations

Question 3

Functions of a Warehouse

Answer 3

• Creating bulk
• Breaking bulk
• Combining goods
• Smoothing

Question 4

Creating bulk

Answer 4

Create big shipment (for one location) out of multiple smaller shipments

Question 5

Breaking bulk

Answer 5

Create smaller shipments (for multiple location) out of one big shipment

Question 6

Cross-docking

Answer 6

Bypasses the storage areas in warehouses and distribution centres. Especially for fast moving freight. Large shipments broken down into smaller shipments for local delivery.

Question 7

Hub-and-Spoke system

Answer 7

Sole purpose of the warehouse (the hub) is sorting goods to consolidation areas

Question 8

Transportation method (Plant location)

Answer 8

Seeks to minimize costs of shipping n units to m destinations or it seeks to maximize profit of shipping n units to m destinations