SCM 301 FINAL PART 3 Flashcards
Why are logistics critical?
Advances in information systems
Globalization of markets
Push towards sustainability
What are the 5 modes of transportation
Highway
Water
Air
Rail
Pipeline
What are the characteristics of Highway transportation?
Dominates US infrastructure
flexible
More cost effective over time
Direct truck are shipments made with no stops
Less than truckload (LTL) is smaller shipments combined with other loads
What are the characteristics of Water transportation?
Ideal for products with a lot of weight compared to their value
lowest ton per miles rate (keeps costs down)
What are the characteristics of Air transportation?
Least used mode because it is expensive and inflexible
Ideal for items with low weight and high value
What are the characteristics of Rail transportation?
More flexibile than water
Strategies for accomadting growth (double number of lines along busy routes, change configuration of tracks, multimodal solutions)
as seamless as possible transition from other transportation modes
Road railer – rail car that can quickly change from a rail car to a truck trailer
Most miles shipped
What are the uses of warehousing?
Reduce transportation costs
Improve operational flexibility
Shorten customer lead times
Lower inventory related costs
What is Consolidation warehousing?
pulls together shipments from a number of sources in a region and combines them into a more econmical load
What is Cross-Docking?
large incoming shipments are broken down into smaller outgoing shipments
What is Hub and Spoke warehousing?
placing hubs strategically, used to transfer and sort products, takes advantage of economies of scale
What is Postponement warehousing?
combines classic warehouse operations with light manufacturing and packing duties, which allows firms to put off final assembly
keep components or generic products in stock until specific customer orders are received
What is Assortment warehousing?
goods held close to the source of demand in order to assure short customer lead times
carry a wide array of goods for a longer time
What is Spot Stock warehousing?
form of warehousing that attempts to position seasonal goods close to the market-place
What is Inventory Pooling?
act of holding safety stock in a single location
lowers safety stock (reduces costs)
lead times do not vary (demand at each location is independent and normally distributed)
What are the six parts of logistics?
transportation
warehousing
material handling
packaging
inventory management
logistics information systems
What are decision support tools in a logistics information system?
help managers choose locations for their warehouses and determine number of containers needed
What does a Planning System do in logistics?
Helps managers with specific activites like selecting a carrier
What is an execution system in a logistics information system?
Most detailed level of logistics systems
Helps managers monitor logistics and identify problems
Radio frequency identification (RFID) uses small electronics to track position of items
What are common carriers (public)?
handles shipment for other firms on a case-by-case basis, without the need for long term agreements or contracts
What is a contract carrier?
transportation service provider that handles shipments for other firms based on long term agreements or contracts
What is a perfect order?
Delivered on time
Shipped complete
Invoiced correctly
Undamaged in transit
100% (total orders – orders with more than 1 defect/total orders)
What is a landed cost?
measures how efficiently logistics provides a service
total expense associated with shipping a product
What is the Weighted Center of Gravity Method?
Simple method of finding the best location for a single node (plant, warehouse, store)
“best” location is determined by the weighted X and weighted Y coordinates
What is the Formula for the Weighted Center of Gravity Method?
Weight times each coordinate (do x and y separately) and divided by total number
What is the Square Root Rule?
lowers inventory related costs
existing safety stock times the square root of new number of something divided by the old number of something
What is the Formula for the Perfect Order?
total orders minus orders with a defect or more divided by the total orders
What is a Reverse Logistics System?
A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, manufacturing
