Logistics

Question 1

Supply chain management

Answer 1

The integration of the procurement of supplies, production, warehousing and transportation

The strategic coordination of business functions within a firm and with other businesses in its supply chain. The aims of scm are to try to co-ordinate supply and demand and lower costs

Question 2

Factors affecting logistical decisions

Answer 2

Where stock is going to come from
Where it is going to be manufactured 
How stock will be transported and with who 
Where stock will be stored 
How many workers will be required 
Trends 
Nature of the product 
Size of the business business location proximity to suppliers, market, workers 
Costs
Outsourcing - move business

Question 3

Offshoring

Answer 3

The relocation of a business from on location to another

Possible free trade and protectionism
Use of labour resources
Use of capacity overseas

Question 4

Reshoring

Answer 4

Returning to the initial location

Greater certainty of delivery
Easier to collaborate with home-based business
Minimising risk of supply chain disruption and minimise its competitors
Cost advantage of producing overseas as not significant

Question 5

Outsourcing

Answer 5

Delegate business processes to their companies

Might not have facilities
Lower costs
Higher qual - specialise

Question 6

Subcontracting

Answer 6

The production of a particular product is undertaken by another firm e.g. contract combining

Question 7

Warehouse control

Answer 7

Control of the day to day operations of a warehouse such as the shipping, receiving, put-away and picking up goods.