M2S1

Question 1

It aims to treat the many different elements that come under the broad category of distribution and logistics as one single integrated system.

Answer 1

(TLC) Total Logistics Concept

Question 2

It is a recognition that the interrelationships between different elements, for example delivery transport and storage, need to be considered within the Context of the broader supply chain.

Answer 2

(TLC) Total Logistics Concept

Question 3

An understanding of the concept is especially important when planning for any aspect of distribution and logistics.

Answer 3

(TLC) Total Logistics Concept

Question 4

4 levels of trade-off

Answer 4

1. Within logistic components
2. between logistic components
3. between company functions
4. between the company and external organization

Question 5

4 levels of trade-off:

This refers to the trade-offs that occur within single functions (eg warehousing).

Answer 5

Within logistics components

Question 6

4 levels of trade-off:

These are the trade-offs that occur between the different elements in logistics.

Answer 6

Between Logistics Components

Question 7

4 levels of trade-off:

There are a number of areas of interface “_____________” where trade-offs can be made.

Answer 7

Between Company function

Question 8

4 levels of trade-off:

There may be opportunities for a trade-off between two companies that are directly associated with each other

Answer 8

Between the company and external organization

Question 9

These types of trade-offs are thus at the heart of the total logistics concept.

Answer 9

Trade-off analysis

Question 10

the equation is, of course, the need to provide the service level that is required by the customer.

Answer 10

Trade-off analysis

Question 11

This balance of total logistics cost and customer service level is essential to successful logistics.

Answer 11

Trade-off analysis

Question 12

successful Logistics = _____ + _____

Answer 12

Successful Logistics = Total Logistics Cost + Customer Service Level

Question 13

Trade-off:

Longer Production runs

Answer 13

Finance: lower production unit cost
Production: lower production unit cost
Distribution: more inventory and storage required
Marketing: lower prices

Question 14

trade-off:

fewer depots

Answer 14

Finance: Reduced depot cost (increase transportation)
Production: no impact
Distribution: less complicated logistic structure
Marketing: service reduction logistic structure due to the distance of depots from customers

Question 15

Trade-off:

reducing stocks of finished goods

Answer 15

Finance: reduced inventory cost
Production: shorter productions run so higher production unit cost
Distribution: no need to expand storage facilities
Marketing: poorer product availability

Question 16

Trade-off:

Reducing raw material and component stocks

Answer 16

Finance: reduced inventory cost
Production: less efficient production scheduling due to stock unavailability
Distribution: lower stock-holding requirement
Marketing: no direct impact

Question 17

trade-off:

Reducing protective transport packaging

Answer 17

Finance: reduced packaging cost
Production: no impact
Distribution: reduced transport modal choice
Marketing: increase in damage deliveries

Question 18

Trade-off:

reducing warehouse supervision

Answer 18

Finance: cost saving through lower headcount
Production: no impact
Distribution: reduced efficiency due to supervision
Marketing: lost sales due to loss accurate order picking