Logistics Session 1

Question 1

What is the bullwhip effect?

Answer 1

This is what happens when delays in the supply chain cause either too much inventory or shortages of inventory. Ex: when someone orders a product they think they need more of, but when the product actually arrives it is no longer needed. Happens frequently in building and automotive sectors.

Question 2

Definition of Logistics

Answer 2

The process of getting the right products to the right place at the right time. Official definition: The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods, and related information flow from point-of-origin to point-of-consumption for the purpose of conforming to customer requirements”

Question 3

What are the 3 kinds of logistics?

Answer 3

Inbound logistics (from suppliers to retailers), in house logistics (within retailers activities) and outbound logistics (from retailers to consumers)

Question 4

What is the difference between warehouses and distribution centers

Answer 4

Warehouses store inventory for longer periods of time, while distribution centers are places where suppliers can bring all goods to one place, and then can be easily distributed to retailers (for making distribution easier)

Question 5

What is the difference between logistics and supply chain management?

Answer 5

Logistics focuses on seeing that you have the right good in the right place at the right time, while supply chain management is a strategic thinking of how the whole process of producing, transporting and supplying goods can be made efficient.

Question 6

What are the 3 main indicators for freight transport?

Answer 6

Transported weight, transport performance (tons x distance), and vehicle kilometers.

Question 7

What is the current modal split in Belgium?

Answer 7

64% road, 21% inland waterways, and 15% rail. This is about the European average

Question 8

What are the 4 determinants of the evolution of the 3 indicators?

Answer 8

1. GDP/economic activity
2. Globalization of production
3. Location of supply and demand
4. Modal choice

Question 9

What are the 6 major trends influencing the determinants?

Answer 9

1. Globalization
2. Individualization
3. Technological advancements (crowdlogistics, 3-D printing, automation, and dematerializtion)
4. e-Commerce
5. rationalization of distribution and logistics
6. circular/sharing economy

Question 10

Complete the sentence. In 1985, 89% of …

Answer 10

companies managed their own logistics, while only 22% do so today.

Question 11

What is the most reliable form of transport, and why?

Answer 11

Barges are the most reliable because there is very little congestion