Supply Chain Logistics

Question 1

Supply chain logistics encompasses all

Answer 1

all material flowsfrom the flow of raw materials into a facility, through the manufacturing process, and out to the final customers.

Question 2

Improved management of supply chain logistics can lead

Answer 2

to improvements in customer service with simultaneous reductions in total inventory, transportation, and warehousing costs.

Question 3

SCL Breadth:

Answer 3

All material flows from raw material suppliers to final customers

Question 4

Total Cost Concept:

Answer 4

The general goal is to minimize the overall cost while meeting customer-service goals

Question 5

Supply Chain Logistics Elements

Answer 5

Inventory, Transportation, and Warehouses

Question 6

Transportation

Answer 6

Common modes include air, rail, truck, ship, pipeline, and combinations

The choice of a transportation mode should depend on volume and desired speed of delivery

Question 7

Warehouses

Answer 7

Locate products closer to customers  faster, on-time delivery

Customers feel more comfortable from having a warehouse nearby (warm puppy effect)

Mix products from several plants for shipment to customers or other warehouses

Question 8

Inventory

Answer 8

Roles of inventory at warehousesCycle stock: Make shipments in economic quantities•e.g.) Full truckload, volume discounts on transportation costs

Safety stock: Protect against stockouts due to uncertainty in supply and demand•The uncertainty is influenced by the choice of transportation mode

Risk pooling through warehouse consolidation can lead to significant savings in safety stock