Teori3 Flashcards

1
Q

What is true regarding reverse logistics and closed loop supply chains?

A

Efficient management of reverse flows often requires broad collaborations along the supply chain and also between competitors.

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2
Q

What is true (in general) when it comes to reclamation cost?

A

Reuse is considered with a low cost.

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3
Q

What is true (in general) regarding a sorting function in reverse logistics?

A

Competence and knowledge of the market is required. A. The closer to the consumer, the higher quality of returns.

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4
Q

What is true regarding reverse logistics and closed loop supply chains?

A

Closed Loop Supply Chains (CLSC) are frequently used to gain competitive advantages.

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5
Q

What are the five areas that drive packaging design according to Azzi et al. (2012)?

A

Safety: This aspect ensures the preservation of both the packaging and its contents during transportation and storage. It also addresses potential hazards to human health and ecosystems due to dangerous contents or materials used in packaging. This involves testing for environmental and physical factors, such as temperature, humidity, and vibrations, to ensure product integrity.

Ergonomics: Packaging design for ergonomics aims to enhance the ease of handling and usage for workers and consumers. It considers factors like weight, dimensions, and manual handling needs to reduce strain and improve productivity. Standards and best practices guide designers in creating user-friendly and safe packaging.

Sustainability: Sustainability in packaging focuses on minimizing environmental impact through the use of lightweight materials, recyclable content, and sustainable designs. It incorporates the “triple bottom line” approach, addressing environmental, economic, and social sustainability goals.

Logistics: This aspect integrates packaging with supply chain efficiency. It considers handling, storage, transportation, and inventory management to reduce costs and optimize performance. Packaging must align with logistical processes and requirements.

Marketing and Communication: Packaging acts as a marketing tool, influencing consumer behavior by enhancing product visibility, brand recognition, and consumer perception. Effective packaging design communicates product attributes and engages consumers at the point of sale, often determining purchasing decisions.

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6
Q

How does the product itself affect the (a) packaging and (b) distribution and transportation?

A

Different characteristics of the product affect the choice of packaging and transportation mode. There are also different levels of packaging (primary, secondary, and tertiary). For example, furniture vs. dairy products.

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7
Q

What does multimodal transport mean? What are the usual steps when using it?

A
  • Transportation that combines several types of transports
  • Uses the type of transport most efficient for each part of the total transported
    distance
  • Efficient transitions between types of transports = efficient work at terminal
  • Unit carriers (pallets or container)
  • Usually made in three steps:
    1. Unload inbound goods
    2. Inspect goods and sort
    3. Reload goods and send off
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8
Q

What are the potential benefits of multimodal transport and what type of products can be most benefited from it?

A

Potential benefits of time saving, money saving, and customer satisfaction. Can be useful for non-perishable products but can demand investment in terminal

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9
Q

Name, and explain, three approaches in cross-docking. What is required to ensure reliability of delivery to the customer?

A

Trans-shipment:
The order received is already packaged for delivery to the customer

Flow-through:
Some sortation or break bulk is needed when the order is received

Merge-in-transit:
Current inventory in storage at the DC is added to the incoming order

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10
Q

According to Pålsson and Hellström (2016), there are different packaging levels. What are the different packaging levels, what is the role of each, and what are the most important packaging criteria for each of these levels and for the entire supply chain?

A

PRIMARY PACKAGING

Role:
Closest to the product, often serving as consumer or sales packaging. It protects the product, provides convenience, and communicates product information to the consumer.

Key Criteria:
- Product Protection: Prevents damage to the product.
- Right Amount and Size: Matches consumer needs and turnover rates.
- Product Information: Ensures clarity for customers, including labels and instructions.

SECONDARY PACKAGING

Role:
Groups primary packages for easier handling and transportation, typically used in retail and logistics.

Key Criteria:
- Product Protection: Safeguards grouped items during transit.
- Volume and Weight Efficiency: Optimizes space utilization and reduces handling weight.
- Handleability: Facilitates easy handling in distribution and retail environments.

TERTIARY PACKAGING

Role:
Used for bulk transportation and storage, such as pallets or containers, ensuring stability and protection during transit.

Key Criteria:
- Stackability: Ensures efficient storage and transit.
- Product Protection: Maintains product integrity during long-distance transport.
- Right Amount and Size: Conforms to logistics requirements for space efficiency.

Criteria for the Entire Supply Chain

  • Product Protection: Central to all levels, ensuring minimal damage throughout the supply chain.
  • Volume and Weight Efficiency: Impacts transportation and storage costs across levels.
  • Handleability: Affects operational efficiency for all supply chain actors.
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11
Q

What is the role of products in packaging? Explain and provide examples, while comparing at least two different products that results in different packaging requirements.

A

The product characteristics influence the choice of packaging. For example, furniture requires robust packaging while dairy products need specific temperature-controlled packaging.

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12
Q

How should packaging be integrated into the supply chain to achieve the best outcome, that is, what areas/aspects should be considered or improved?

A

To integrate packaging effectively into the supply chain, companies should adopt a holistic approach that considers all levels of the packaging system and their interactions. Key areas for improvement include collaboration among supply chain actors, addressing trade-offs between competing requirements (e.g., protection vs. cost), and ensuring that logistics and environmental efficiency are prioritized alongside economic considerations. Decision-making should be guided by tools like the packaging scorecard and involve cost and benefit-sharing models to align incentives and improve overall supply chain performance.

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13
Q

What does urbanization mean, including its positive and negative aspects, and what are the relationships between urbanization and facility location?

A

Urbanization refers to the population shift from rural to urban areas. It has positive effects such as economic growth and innovation and negative ones like pollution and congestion. Facility locations need to be optimized for the urban environment.

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14
Q

Planning a system can be done on three different horizon levels. What are these levels, generally for how long are they planned, and how often do they need to be reviewed? Give an example for each of the levels.

A
  • Strategic: long-term (3-5 years or more)
  • Reviewed annually/bi-annually and set broad goals (high level of details)
  • Tactical: mid-term (1-2 years)
  • Reviewed quarterly or semi-annually and sets specific objectives
    (detailed planning)
  • Operational: short-term (daily to 1 year)
  • Reviewed daily or weekly and sets granular tasks (very specific and
    detailed planning)
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15
Q

Consider main processes across a supply chain and different planning horizon levels. Give four examples and clearly indicate to which process and planning level it belongs.

A

Strategic Network Planning - Strategic - All

Demand planning - Tactical - Sales

Scheduling & Sequencing - Operational - Production

Transport planning - Operational - Distribution

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16
Q

What does sustainability mean according to Brundtland (1987)? How many dimensions does sustainability and sustainable development have and what does each of these dimensions entail (name and explain)?

A

Sustainability means meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Three dimensions
1. Environment – Pollution, climate change, depletion
of natural resources
2. Economic – Employment, financial strength,
corporate profitability
3. Social – Reduced poverty, increased living and
work standard

17
Q

How does e-trade affect different sustainability dimensions, is the effect positive or negative or both? Elaborate on your answer, clearly mention the connections to each dimension, provide examples to strengthen your arguments.

A

E-trade can have both positive and negative effects on sustainability. Positive: reduced physical footprint of stores, better inventory management. Negative: increased transport, packaging waste, etc.

18
Q

Is the location of customers (living in rural areas vs. in urban areas) an important factor when evaluating e-trade and sustainability?

A

Yes, location affects transport emissions and packaging needs. Rural customers often have longer transport distances.

19
Q

As indicated by Gracia-Arca et al. (2017), ‘packaging is one element that can support and promote improvements and innovations in sustainable management of supply chains.’ In the context of sustainable supply chain management, why should we pay attention to packaging?

A

Packaging plays a crucial role in sustainable supply chain management as it integrates material, logistics, and environmental considerations. It reduces waste, enhances resource efficiency, and promotes innovations that align with economic, environmental, and social sustainability. Proper packaging design can optimize handling, storage, and transport, while minimizing ecological impact and improving supply chain performance.

20
Q

What are the important factors in packaging other than costs?

A

Logistics attributes, environmental aspects and aspects of importance from each stakeholder’s perspective.

21
Q

There are several scientific works on relationship of packaging and sustainability; one such work is the study done by Gracia-Arca et al. (2017). What is the role of packaging in each sustainability dimension?

A

Packaging contributes to economic sustainability by reducing costs, optimizing logistics, and increasing sales through product differentiation and efficiency. For environmental sustainability, it minimizes material usage, waste, and resource consumption while promoting recycling and reuse. In the social sustainability dimension, it ensures safety, transparency, accessibility, and convenience for diverse user needs.

22
Q

What are the four logistic options that companies nowadays choose from? When and how each of these options is selected to be used by a company?

A

4PL (Fourth Party Logistics)
- Leading logistics service providers and consultants
- Supply chain design

3PL (Third Party Logistics)
- Logistics service providers
- Logistics

2PL (Second Party Logistics)
- Haulers/carriers
- Transport and warehousing

1PL (First Party Logistics)
- In-house logistics departments

23
Q

In a distribution system, different channels are used. How many (main) distribution channel types exist? Name them and explain what they entail.

A

Physical distribution channel: it is used to describe the method used to distribute goods from the factory (point of production) to retailer unit (point of consumption)

Trade or transaction channels: they look at the intangible flows between factory and wholesaler or consumer (e.g., negotiations, buying and selling)

24
Q

Products play an important role in deciding the choice of a distribution channel, given the channel’s structure. Name these channel choices and provide four product types/classes/categories and explain which of the channel choices each product would use.

A

High-value goods usually go through short distribution channels

Time-sensitive products need fast channels

New products are usually distributed through 3PL channels (final demand is unknown and higher supply flexibility is needed)

Products with handling restrictions (e.g., food, hazardous material, glass) usually require more complicated flows and 3PL partners—a specialized physical distribution.

25
Q

What does consolidation mean? What are the benefits and drawbacks of it? Name and explain three approaches for consolidation.

A

To fill up a shipment with multiple orders to the same destination or customer

Benefits: lower transport costs.
Drawbacks: increased handling and time. Three approaches: by product, by geographic area, or by client.

Three approaches:

Delivery directly to stock
- Fill up inventory with an order size (complete shipment) and emptied by the demand rate

Fixed delivery points in time
- Gather shipments to be transported on a fixed day each week to avoid smaller shipments

Distribution by Hub and Spoke
- Hub = terminal, warehouses, distribution centers (loading/unloading, sorting, storing)
- Spoke = route
- Coordination between hubs: larger shipments are separated and transported further to the customer
- Flows of goods merges from the spokes to be separated or consolidated

26
Q

Why city logistic is particularly noticeable in urban areas? Elaborate on its three main problems.

A

– Limited space and accessibility
– Conflict situation between people and goods transport planning. Authorities v.s. businesses
– Conflict situation between residents, work places, production, distribution, shopping, and tourism

27
Q

What are the solutions for the problems of urban freight problem? Describe one of these solutions in detail and explain when it is applicable.

A

Urban Consolidation Centres, off-hour deliveries, and cargo bikes. UCC’s: a facility where different shipments are consolidated before being delivered to city customers. It can reduce the number of vehicles in the city. It’s applicable when there’s high delivery volume in the city.

28
Q

What characterizes the following transport modes, and when are they suitable to use in the distribution network? a) Road transports b) Sea freight

A

Road (Truck):
Size of transported order: Medium
Cost: Moderate to High
Capital tied up: Moderate
Delivery accuracy: Moderate to High

Sea (Ship):
Size of transported order: Large
Cost: Low
Capital tied up: High
Delivery accuracy: Low

29
Q

What characterizes the following transport modes, and when are they suitable to use in the distribution network? a) Air transports b) Rail transport

A

Air (Plane):
Size of transported order: Small
Cost: High
Capital tied up: Low
Delivery accuracy: High

Rail (Train):
Size of transported order: Large
Cost: Moderate
Capital tied up: Moderate
Delivery accuracy: Moderate

30
Q

What are the functions of packaging and how can packaging relate to distribution?

A
  • Containment
  • Protection
  • Apportionment
  • Unitization
  • Convenience
  • Communication

The facilitate efficient distribution.

31
Q

Related to the three packaging levels, there is also the concept of ‘unit load’. What is it and how does it relate to the packaging levels?

A

A unit load is a grouping of packages to facilitate transport. It combines tertiary and sometimes secondary packaging.

32
Q

Explain the concept of urban consolidation centres (UCC). What are they? When are they applicable? What are the pros and cons of UCC’s? Why do we not see more UCC’s in urban freight today?

A

UCCs are facilities where goods are consolidated for urban delivery. They are applicable in congested areas. Pros: reduced traffic, cons: increased handling. Lack of collaboration and initial cost impede adoption.

33
Q

Nilsson and Pålsson (2006) present a model of packaging based on Lockamy III (1995) and Saghir (2004). This model depicts packaging as a central function in the production and distribution system. The five functions they mention are containment, protection, apportionment, unitization, convenience, and communication. What do these functions mean and how are they related to distribution?

A

Containment:
This function ensures that products are securely held together and not lost or damaged during handling and transportation. Containment is vital for efficient storage and distribution as it prevents spillage or loss, ensuring the integrity of the products until they reach their destination.

Protection:
Packaging protects the contents from environmental hazards (e.g., moisture, temperature changes) and physical damage during transportation and storage. This is crucial in maintaining product quality and reducing losses in the supply chain.

Apportionment:
Apportionment refers to dividing bulk goods into manageable and transportable units. This aids in precise distribution, enabling easier handling and matching supply to demand by providing quantities suited to retail or individual customer needs.

Unitization:
This function involves consolidating smaller packages into larger units for more efficient handling and transportation, such as on pallets. Unitization optimizes space in storage and vehicles, reducing costs and improving distribution logistics.

Convenience:
Packaging should facilitate ease of handling, use, and storage for both supply chain operators and end users. Features such as easy-open seals or stackable designs streamline logistics processes and enhance user satisfaction.

Communication:
Packaging provides critical information about the product, including handling instructions, regulatory compliance, and marketing messages. In distribution, clear labeling aids in correct routing, storage, and use, minimizing errors and enhancing efficiency.

34
Q

What is true (in general) regarding distribution management?

A

Distribution management is the interface between sales and customer. Distribution management is the means with which we provide time, cost, and place benefit for customers. Distribution management encompasses both transport management and warehouse management.

35
Q

What is true regarding convergent flows?

A

The flow is convergent when several different components are joined into a single product.