Logistics Final ope, logistics 3380 midterm eep
From a space utilization perspective, one pallet occupies ____ times more space than a plastic slip sheet.
80
The Globally Harmonized System of Classification and Labeling of Chemicals (GHS) was developed by the ____.
United Nations
What is the largest transportation company (by revenues) in the United States?
United Parcel Service
Which countries rank first, second, and third, respectively in terms of highway mileage?
United States, China, India
the total cost concept
View the sum of LOGISTICS OPERATIONS AS A SYSTEM and seek to MINIMIZE THE TOTAL COST of the system rather than the individual functions. (if you have one part of the system not up to speed, the system as a whole will not work) -like a stereo system
storage
You must try to balance inventory levels, locations, and choice of transport mode to serve your customers quickly. These issues become even trickier as more customers (both B2C and B2B) increase on-line ordering. That is, you must manage both traditional bricks-and-mortar and clicks-and-mortar supply chains. No one wants too much inventory sitting around, where it can lose value as it ages and becomes obsolete—getting damaged, lost, or stolen
risk assessment
a risk heat map helps you answer 2 questions: 1. what is the likelihood an event will occur? 2. what is the potential impact if the event does occur?
definition of partnership
a tailored business relationship based on mutual trust, openness, shared risk, and shared rewards that results in business performance greater than would be achieved by 2 firms working together in absence of partnership
Shipping conferences refer to ____.
cartels of ocean vessel operators operating between certain trade areas
A ____ specifies the country (ies) in which a product is manufactured and can be required by governments for control purposes or by an exporter to verify the location of manufacture.
certificate of origin
A(n) ____ rate simplifies each of the three primary rate factors—product, weight, and distance.
class
____ systems consider the reverse flow of products, their reuse, and the marketing and distribution of recovered products.
closed-loop
With respect to density, a vehicle loaded with ____ is most likely to cube out (cubic capacity is filled before reaching its weight capacity).
coal
A ____ is similar in nature to a domestic bill of lading and summarizes the entire transaction.
commercial invoice
A(n) ____ rate refers to a specific rate for every possible combination of product, weight, and distance.
commodity
drivers (partnership model)
compelling reasons to partner Expected benefits from expanding a relationship: -Improvement in asset/cost efficiencies -Improved customer service -Enhanced marketing advantage -Profit growth/stability The stronger the drivers, the more chance of a successful partnership
unknown-unknowns
conceivable but unusual and unexpected events (such as 9/11). because they are so rare, even surprising, they are sometimes referred to as black swan events.
Dimensional weight ____.
considers a shipment's density
Freight forwarders ____.
consolidate the shipments of several shippers
A unit load involves ____.
consolidation of several units into larger units to improve efficiency in handling and to reduce shipping costs
hierarchy of business strategies
corporate strategy marketing strategy operations strategy supply strategy/logistics strategy
lost customers
customer permanently switches to another supplier
There are ____ modes of transportation.
five
The primary advantage for motor carriers is ____.
flexibility
quantity utility
focuses on delivering customers the right amount of product. The Costco distribution center (DC) mentioned above may receive full truckload shipments of toilet paper, coffee, and canned corn at about the same time. Stores, however, do not need a whole truck of any of these items. So, they are unloaded at the DC (breaking bulk) and mixed—perhaps one or more pallets of each—with other goods (assorting) to fill a store-bound trailer. This combination of "breaking bulk" and "assorting" helps firms meet customers' desire to buy a variety of items at one location—and at affordable prices.
OSU resiliency framework
forces of change lead to increasing vulnerabilities management controls lead to increasing capabilities leads to a zone of balance --> resilience
Shippers' associations ____.
function in a manner similar to freight forwarders
intensive distribution
getting products in the hands of all customers across a broad market geography ex. coca-cola, general mills The goal: Make it easy and inexpensive for you to find and buy their products
seven rights of logistics
getting the right product to the right customer at the right time in the right condition in the right quantity at the right place for the right cost
____ refers to the sum of the gross domestic product of all countries.
gross world product
simplify
have a logical place where everything belongs -- i.e., a place for everything and everything in its place ex. put inventory away immediately on arrival to improve stock level accuracy benefits: Inventory accuracy, order accuracy, and fill rate will improve. Fewer split shipments or expediting.
In the class rate system, freight rates are expressed in dollars or cents per ____.
hundredweight
waiting
idle/wasted time when resources are not ready/available to use ex. (logistics): waiting at a dock or in a lot to unload a truck, staging orders to be shipped in advance of when they are needed ex. (manufacturing): machines downtime awaiting for repairs which delays production, shortage of needed materials delaying processing
exclusive distribution
intentionally reaching a limited number of customers to maintain prestige ex. cartier watches, ferraris The goal: To create an aura of luxury around their products
____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
intermodal
Which of the following statements about international inventory management is false? a. product return policies are a concern b. inventory valuation is difficult because of continually changing exchange rates c. safety stocks generally need to be larger d. inventory for sale in one nation generally serves the needs of markets in nearby nations e. all of the above are true
inventory for sale in one nation generally serves the needs of markets in nearby nations
With respect to a commodity's freight classification, shippers tend to prefer a ____ classification number and carriers tend to prefer a ____ classification number.
lower, higher
overproduction
making more than the customer wants or than you have KNOWN demand for ex. (logistics): giving the customer more product than ordered, expediting an order that the customer does not need early ex. (manufacturing): batch processing to meet "efficient" production order size rather than customer demand, using a "push" production system
____ refers to the short distance movement that usually takes place within the confines of a building such as a plant or distribution center and between a building and a transportation service provider.
materials handling
A major advantage of the unit load is ____.
mechanical devices can be substituted for manual labor
transportation
movement of materials or information that does not add value ex. (logistics): transporting the same item multiple times with no change in the item, restaging products for shipping to move them out of the way when shipments don't go out as sequenced ex. (manufacturing): Moving products to different locations for further processing Moving materials or packaging to be used in production to get them out of the way
motion
movement of people that does not add value ex. (logistics): Unloading and reloading the same shipment to improve the cube utilization instead of planning in advance, Backtracking in picking process (in DC) to fill orders ex. (manufacturing): Reaching or walking to get materials for each item rather than having materials come to you, Repetitive movements that can cause injury
military logistics
moving groups of people and supplies, setting up camps, replenishing supplies and people, and breaking camp down again and moving it out ex. Australia's regional assistance mission to the Solomon Islands to help provide security
passenger logistics
moving people ex. scheduled or private airplane flights, bus rides, highway travel
movement
transportation permits goods to flow from one place to another, making global trade possible. Transportation decisions begin with modal choice. to make the right choice, we need to understand our customer's needs
Private transportation is most prevalent in the ____ industry.
trucking
Which of the following is not a source of income for international freight forwarders? a. payment for freight pick up and delivery b. buying space wholesale and selling it retail c. commissions on shipping revenues generated for carriers d. fees for document preparation and performing research e. all of the above are sources of income
payment for freight pick up and delivery
The predominant commodity moved by barge transportation is ____.
petroleum
In the United States, ____ account for the largest share of ton-miles and ____ account for the majority of freight revenues.
railroads; truck
____ signifies the price charged for freight transportation.
rate
Consignees are ____.
receivers of freight
The primary advantage to land bridge service is ____.
reduced transit times
aspects of delivery that customers care about...
speed (length of order cycle) consistency (variability of order cycle) flexibility (responsiveness of order cycle)
____ refers to how easy a commodity is to pack into a load.
stowability
____ are taxes that governments place on the importation of certain items.
tariffs
Incoterms refer to ____.
terms of sale for international shipments
logistics
that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet the customers' requirements
Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ____.
the ability to offer shippers a broader service network
Each of the following is true, except ____. a. the bill of lading is the most important transportation document b. the bill of lading adds to the complexity of the transportation manager's job c. the straight bill of lading contains the name of the consignee d. the order bill of lading does not contain the name of the consignee e. all of the above are true
the bill of lading adds to the complexity of the transportation manager's job
definition of resilience
the capacity to survive, adapt, and grow in the face of turbulent change
Suppose that a particular item is Class 200 according to the National Motor Freight Classification. What is the relationship between this item's rate and the rate for an item in Class 100?
the class 200 rate is higher than the class 100 rate
shift in channel power
the development of "category killer" stores has resulted in a shift of channel power from manufacturers to retailers ex. best buy and walmart
Rail gauge refers to ____.
the distance between the inner sides of two parallel rail tracks
outcomes (partnership model)
the extent to which performance meets expectations
processing
the flow of information and the visibility of shipments during movement and storage. Visibility allows us to always know where our goods are as they move toward us
____ refers to the buying and controlling of transportation services by either a shipper or consignee.
transportation management
____ pipelines carry crude oil from gathering-line concentration points to the oil refineries.
trunk
Biodegradable plastics cost ____ as much as conventional plastics.
two times
five utilities and how logistics influences them
utility- describes perceived value 1. possession utility (marketing) 2. form utility (production) 3. time utility (logistics) 4. place utility (logistics) 5. quantity utility (logistics)
The Logistics Performance Index ____.
was created in recognition of the importance of logistics in international trade
Demurrage charges are collected by railroads, ____, and ____.
water carriers, pipelines
Small shipments are defined as those that ____.
weigh more than 150 pounds but less than 500 pounds
Product density refers to a product's ____.
weight per volume
An order bill of lading is used ____.
when a shipment is started before the buyer is known
what processes does each customer initiate?
you must manage a variety of processes from new product development to reverse logistics. We are currently interested in logistics order fulfillment.
supply chain capabilities
"Attributes that enable an enterprise to anticipate and overcome disruptions" flexibility in sourcing, flexibility in fulfillment, capacity, efficiency, visbility, adaptibility, anticipation, recovery, dispersion, collaboration, organization, market position, security, financial strength
supply chain vulnerabilities
"Fundamental factors that make an enterprise susceptible to disruptions" turbulence, deliberate threats, external pressures, resource limits, sensitivity, connectivity, supplier/customer disruptions
differences between exclusive, selective and intensive distribution
***
methods for establishing a customer service strategy
-Determine channel service levels based on knowledge of consumer reactions to stock-outs -Examine cost/revenue trade-offs -Use ABC Analysis for customers and products -Conduct a customer service audit
impediments to an effective customer service strategy
-Failing to segment markets in terms of service offered -Misuse of customer service by salespeople -Failing to measure the cost-effectiveness of service levels -Inability to determine competitive service levels -Inadequate customer service research
customer profitability analysis
-In reality, some customers buy higher-margin products; others cost more to serve -To execute a truly profitable tailored logistics strategy, you need to segment customers based on profitability. -use activity-based cost management (ABCM) to get real costs of logistics customer service
logistics cost tradeoffs
-Increasing the number of warehouses increases inventory cost but decreases transportation costs and (often) decreases the cost of lost sales -Using faster modes of transportation decreases the cost of lost sales -Lot quantity costs and inventory carrying costs are inversely related -Investments in information technology should decrease the cost of lost sales
feedback to: (partnership model)
-components -drivers -facilitators
logistics connection to marketing and production
-demand realization and/or creation <---> demand satisfaction -LG/PD interface activities: product scheduling, plant location, purchasing -LG/MK interface activities: customer service, pricing, packaging, retail location
different types of logistics - table 1-2
-event logistics -passenger logistics -military logistics -service logistics -humanitarian logistics
increasing role of IT & Information
-info&visibility within and across organizations improves cost performance and operational efficiency -1 challenge is that companies are drowning in data, but the challenge is to turn this data into useful info -other challenge is that sharing info between firms in the SC requires trust that the partner will not act opportunistically w such info
possession utility
-marketing tactic that makes you have the desire to want to possess something -it 1) translates customer needs into product and service requirements, 2) promotes the resulting product's value, and 3) facilitates exchange so the customer may "possess" it. ex. the ads you see on your Facebook that are catered specifically to you
product proliferation
-occurs when organizations market many variations of the same products -companies have greatly increased the number of product offerings within categories to try and secure niche customers -SKU (stock keeping unit) proliferation greatly increases the challenges of inventory management
segmented service offerings
-on time delivery -lead time -time window compliance -fill rate -complete orders -payment terms -customer support
increasing competitive pressure
-place/customer service is the hardest component for competitors to replicate of the marketing mix components -outcompete others in its industry by providing outstanding customer service -logistics competency allows for smaller firms to differentiate themselves from larger competitors w an absolute cost advantage stemming from scales economies -superior service creates a "lock-in" whereby it is harder for the buyer to find a substitute for the supplier
what do logistics systems provide?
-product availability -timely delivery -transparency -protection against disruption -operational efficiency
increasing number of delivery points
-retail outlets are beginning to expand their product offerings -now the manufacturer must be able to handle smaller orders
globalization
-supply chains becoming increasingly longer due to sourcing materials from throughout the world -with the move towards lean operations, inventory levels have been consistently reduced
why partner?
-to gain the advantages of vertical integration while still maintaining organizational independence -to take advantage of "best in class" expertise -to achieve service improvements -to gain operational efficiencies -to respond to competitors
5 key relationship lessons
-you must be willing to look at things differently -most companies have a lot more in common than they think -visibility is key to building trust -mistakes happen, the problem is not learning from them #1- a well structured plan that is closely monitored is key for ensuring results
4 questions for tracing costs
1. What are your cost objects? 2. What processes does each customer initiate? 3. What activities comprise each process? 4. What resources are used by each activity?
cost of stockouts
1. backorders 2. lost sales 3. lost customers
eight wastes and connection to logistics
1. defects 2. overproduction 3. waiting 4. not utilizing staff talent 5. transportation 6. inventory 7. motion 8. excess processing
importance of excellent logistics customer service
1. existing customers are often considered "cheaper" to sell to 2. existing customers are more loyal 3. existing customers often buy more 4. existing customers are a good source for referrals 5. lifetime value of a customer
3 types of risk
1. known-knowns 2. known-unknowns 3. unknown-unknowns
4 step risk management process
1. risk identification 2. risk assessment 3. risk prioritization 4. risk mitigation
Incoterms are generally revised approximately every ____ years.
10
Truckload carriers focus on shipments of greater than ____ pounds.
10,000
What container size is often used to rank water ports and measure containership capacity?
20 foot container
Common carriers of transportation have ____ obligations.
4
____ distinct international methods of payment exist.
4
U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars.
48, 24
____ pounds is the approximate weight at which there is a noticeable increase in injuries, particularly back injuries, from manual handling.
50
The National Motor Freight Classification currently has 18 separate ratings, or classes, that range for Class 50 to Class ____
500
Approximately ____ of cross-border shipments move by water transportation.
60%
In the United States, commercial airline pilots must retire at age ____.
65
The cost of sending a shipment by air transportation from China to the United States can be ____ times more expensive than sending a shipment by water transportation between the two countries.
8-10
protection against disruption
Because service failures are inevitable, you need to establish contingency plans to recover from disruptions. A well-conceived plan will help you anticipate many potential disruptions, keeping them from ever happening. service recovery paradox- some companies resolve service failures so well that it actually increases customer satisfaction
timely delivery
By delivering on time, you help customers minimize costs, maintain efficient operations, and support sales. -customers care about three aspects of delivery: speed (length of the order cycle), consistency (dependability), and agility (adapting to the unexpected)
US logistics costs makeup
Carrying costs (interest, taxes, obsolescence, depreciation, insurance, warehousing) -$434 b Transportation Costs [motor carriers (trucks), railroads, water, oil pipeline, air, forwarders] - $837 B shipper related costs logistics administration
Which of the following statements is false? a. in China, freight is often given lower priority than passengers in rail transportation b. China ranks first in the world in terms of highway mileage c. highway freight transportation can be provided by animals and carts in some countries d. some countries limit a motor carrier's operations to within a particular state's borders e. all of the above are true
China ranks first in the world in terms of highway mileage
sweep
Clean and organize each day as you use things—put them away ex. Leave all orders completed so that it is easy to know where to begin, starting in the morning/next shift will be a smooth transition benefits: Will reduce and prevent miscommunication and duplicated effort.
sustain
Continuously follow this approach and implement it throughout your company ex. Listen to employee suggestions for improvement, train employees in these methods benefits: Improved warehouse performance and employee satisfaction and engagement.
The U.S. ____ is the federal government body with primary responsibility for transportation safety regulation.
Department of Transportation
Short-sea shipping is widely accepted and practiced in ____.
Europe
Which of the following is not a possible payment option (terms of sale) for U.S. domestic shipments? a. FOB origin, freight collect and charged back b. FOB origin, freight collect c. FOB origin, freight prepaid d. FOB origin, freight prepaid and charged back e. all of the above are possible payment options
FOB origin, freight collect and charged back
standardize
Have standardized processes and procedures to maintain workplace order, ease training of new people ex. Have common approach for filling orders, training benefits: Will reduce and prevent miscommunication, improve service levels.
what are your cost objects?
In a customer-segmentation scenario, you want to begin your analysis with your most resource-intensive "A" customers. (products, services, customers)
What organization regulates the packaging of international air shipments?
International Air Transport Association
The ____ has established six international pallet size standards.
International Standards Organization
the perfect order
No-fault performance from the time of order receipt through customer delivery Requirements: quality throughout process clear communications within firm and with customer willingness to stand behind the promise ("Immaculate Recovery" if necessary) example measurement of (OTIFEF)
the partnership model
Partnerships are not appropriate in all situations General guidelines exist to determine if a partnership is appropriate Different settings require different types of partnering The appropriate partnership can improve performance of both firms
leagile fulfillment
Push it to a certain point and then become more agile in the back end. Where does that coupling point need to go?
As of 2012, ____ is the world's busiest container port.
Shanghai
5S methodology and logistics examples
Sort, Simplify, Sweep, Standardize, and Sustain. They are tactical ways of organizing any process and can guide your Kaizen events, helping you find and eliminate the eight wastes
CSCMP definition of supply chain management
Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. (logistics is part of supply chain)
With respect to U.S. economic regulation, the ____ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers, and some jurisdiction over motor carriers, domestic water transportation, and pipelines.
Surface Transportation Board
product availability
Your ability to assure product availability is basic and essential. Some factors are out of your control—think rivals' competitive moves, sudden shifts in customer preferences, and extreme weather. You have many tools such as data and inventory management to help you assure product availability. Many companies share Point of Sales (POS) Information, use integrated business planning (IBP), and employ predictive analytics to improve availability. With enough inventory, you could achieve close-to-perfect availability. However, inventory is expensive. You cannot simply say, "We will meet 100% of all orders."
An invoice submitted by the carrier requesting to be paid is ____.
a freight bill
What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with applicable terms and conditions of the particular transaction?
a letter of credit
Over 80% of customers view packaging as ____.
a major environmental issue
Which of the following is not a key piece of classification and labeling information provided by the Globally Harmonized System of Classification and Labeling of Chemicals (GHS)? a. a signal word (e.g., "danger") b. a picture of the chemical or hazardous material c. a symbol d. a hazard statement (e.g., "severe projection hazard") e. all of the above are key pieces of GHS information
a picture of the chemical or hazardous material
Which of the following statements is false? a. a product's chemical characteristics have little to no influence on the way the product is handled b. some products can be exposed to freezing weather; others cannot c. the various properties of goods must be made known to consumers to help them make the correct buying decision and properly care for the product d. perishable products require special packaging as they move from source to customer e. all of the above are true
a product's chemical characteristics have little to no influence on the way the product is handled
Each of the following is true, except ____. a. Schneider National is an example of a truckload carrier b. in truckload shipments, the shipper loads and the consignee unloads the trailer c. a truckload shipment involves only one customer d. truckload carriers focus on shipments of greater than 10,000 pounds e. all of the above are true
a truckload shipment involves only one customer
Liability for loss and damage is one factor used to determine a product's freight classification. Which of the following is not a loss and damage consideration? a. a commodity's propensity to damage other freight b. ability to load freight on top of a commodity c. a commodity's perishability d. a commodity's value e. all of the above are loss and damage considerations
ability to load freight on top of a commodity
excess processing
activities that the customer does not value and is not willing to pay for ex. (logistics): Excessive packaging, providing paper copies of bills of lading that customer does not need because all is sent electronically ex. (manufacturing): Using more expensive materials that really do not improve the product in the customer's eyes Buying a high-tech machine and using only some of the features because others aren't needed Inspecting goods rather than doing it right the first time
____ is generally the fastest form of transportation for shipments exceeding 600 miles.
air
pareto's law
aka the 80-20 rule, observes that 80% of your revenues/profits are driven by your most important 20% of customers -not all (industrial) customers are created equal 1. classify companies by sales 2. modify classifications based on strategic issues (requires experience, judgement, and good scanning skills to identify and assess the right features)
Which of the following is not likely to move by air transportation? a. wearing apparel b. fruits and vegetables c. cut flowers d. auto parts e. all are likely to move by air
all are likely to move by air
Which of the following is not a factor used to determine a product's classification? a. density b. liability to damage and theft c. stowability d. ease of handling e. all of the above are factors used to determine a product's classification
all of the above are factors used to determine a product's classification
Which of the following is not a legal classification of carriers? a. exempt b. contract c. common d. private e. all of the above are legal classifications
all of the above are legal classifications
Which of the following is not a logistical consequence of packaging inefficiency? a. increased loss b. increased damage c. higher storage costs d. slower materials handling e. all of the above are logistical consequences
all of the above are logistical consequences
Which of the following is not open for negotiation in a bilateral air agreement? a. the carriers that will service particular city pairs b. the types of aircraft to be used c. the number of flights between the two countries d. the total number of seats to be offered e. all of the above are open for negotiation
all of the above are open for negotiation
Which of the following is not a political restriction on international trade? a. embargoes b. import quotas c. barring certain types of shipments d. tariffs e. all of the above are political restrictions
all of the above are political restrictions
International freight forwarders can provide a number of functions. Which of the following is not one of them? a. booking space on carriers b. preparing an export declaration c. arranged for insurance d. preparing and sending shipping notices and documents e. all of the above are possible functions
all of the above are possible functions
Which of the following is not an environmentally-friendly packaging strategy that firms might adopt? a. reduce the amount of packing materials used b. use more environmentally-friendly packaging materials c. use reusable containers d. retain or support services that collect the used package and recycle it e. all of the above are strategies
all of the above are strategies
Which of the following is false? a. the unit load is of limited value to shippers that deal in smaller quantities b. unit loads may discourage pilferage c. the unit load allows mechanical devices to be substituted for manual labor d. pallets suffer from a lack of standardized sizes, particularly in the U.S. e. all of the above are true
all of the above are true
Which of the following statements is false? a. carriers may be reluctant to accept small shipments because they require a high degree of manual labor b. some carriers believe they lose money on small shipments c. consolidating small shipments into larger ones could result in poorer service to the final customer d. consolidating small shipments into larger ones likely results in higher inventory carrying costs e. all of the above are true
all of the above are true
Which of the following statements regarding perishable products is false? a. they require special storage b. they require special monitoring c. they require special loading d. they require special packaging e. all of the above are true
all of the above are true
service logistics
all the people, facilities, and supplies in place to effectively deliver services to customers ex. hair salon, hospital operations
A(n) ____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service.
amodal shipper
A dry bulk material's ____ is important for determining the quantity that can be stored in a given location.
angle of repose
defects
any work or product that is less than perfect ex. (logistics): order that does not include every item on the invoice, order that is received early by the customer ex. (manufacturing): scrap, damaged parts, product that does not mean quality specifications
A "box-maker's certificate" ____.
assures railroads and motor carriers that boxes are sufficiently sturdy to meet their handling requirements
Which of the following is false? a. racks and bins are examples of storage equipment b. automation refers to equipment that complements, rather than replaces, human contact c. forklifts can be dangerous d. in a part-to-picker system, the pick location is brought to the picker e. all of the above are true
automation refers to equipment that complements, rather than replaces, human contact
how to measure lifetime customer value
average transaction value x yearly frequency of purchase x customer "life expectancy"
why are executives giving more focus to logistics?
b/c of -increasing competitive pressures -shift in channel power -globalization -development of IT systems and the increasing importance of information -increased product proliferation -increased number of delivery points
What do we call a system of accounts that records a country's international financial transactions?
balance of payments
The most important single transportation document is the ____.
bill of lading
risk identification
brainstorming the 3 types of risks (known-knowns, known-unknowns, and unknown-unknowns) as it gets the risk discussion out int he open, helping you think about what might happen and what you an do about it
transparency
customers want a "perfect order" -Transparent service can help your customers compensate when the unexpected happens. If your customers know that delivery will be delayed, they can plan around the new delivery schedule. -Order transparency improves planning, execution, and evaluation.
processing
deals with the flow of information and the visibility of shipments during movement and storage. Visibility allows us to always know where our goods are as they move toward us. Some companies, like Dell Computers, take advantage of this visibility to divert shipments in route, switching their final destination to a location where the need is greater as demand shifts. Many carriers advertise this capability to their customers.
deliverables of order fulfillment
delivery, transparency, service recovery, operational efficiency
Which of the following is not one of the three primary factors that transportation rates are based upon? a. product b. density c. weight d. distance
density
____ refers to how heavy a product is in relation to its size. a. stowability b. volume c. weight d. density
density
Which of the following statements is false?
detention is similar to demurrage, except that detention applies to pipelines
As a general rule, labeling requirements and enforcement tends to be more stringent in ____ countries than in ____ countries.
economically developed; economically developing
operational efficiency (service recovery)
efficiently provide the service customers need First, identify the relevant cost-service tradeoffs associated with meeting each customer's needs. Second, run the numbers to assess the cost and benefits of each service offering.
sort
eliminate unneeded items from the area, store things not needed now -- ex. Move slow-moving inventory into a more remote part of DC so that you are not wasting steps walking by items that are rarely ordered benefit: Free up floor space; have more efficient filling of orders as fast moving items are located closer to each other and closer to the front of the warehouse.
____ refers to the interaction between workers and workplace conditions.
ergonomics
known-unknowns
events that you know can happen, but they have no consistent pattern or history. assessment is speculative. as you evaluate likelihood and potential impact, you ask a lot of "what-if" questions
known-knowns
events with a track record. they occur fairly frequently. you can look at the data to assess the probability they will occur and the severity of their impact
inventory
excess materials that customers or manufacturing don't currently need ex. (logistics): Holding excess finished goods in warehouses, carrying high levels of safety stock due to unreliable delivery lead-times ex. (manufacturing): Carrying extra raw materials to cover for defective materials or excessive scrap in production, Ordering more materials than needed to get discounts, Holding on to discontinued products or unused equipment
____ refers to rapidly moving a shipment through a carrier's system.
expediting
____ act the export sales department for a manufacturer.
export management companies
An ____ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself
export packer
facilitators (partnership model)
factors which increase the likelihood of partnership success favorable environmental conditions possible in all relationships: -corporate compatibility -compatibly management philosophy and techniques -a strong perspective of mutuality -symmetry between the 2 parties Additional facilitators which may be present and which strengthen the likelihood of success: Shared competitors Physical proximity Potential for exclusivity Prior relationship experience Shared end users **The more facilitators, the better the chance of success
lean fulfillment
inventory position is positioned at distribution center based on forecast, push to DC and pull from DC, best for consistent, stable demand Pull-versus-Push Fulfillment Waste Elimination Coordinated Effort ex. TOYOTA
Consular documents ____.
involve obtaining permission from the importing country for the goods to enter
place utility
involves delivering an item exactly where it is needed. One of the main reasons that you shop online is place utility. On-line retailers like Amazon.com and Alibaba.com provide place utility by delivering products directly to your home or office. Businesses that supply other businesses, like auto parts manufacturer Bosch to Audi, add value by delivering to the factory and the dock where the part or component is needed for production.
A 3,047 meter (10,000 foot) runway is significant because it ____.
is generally viewed as adequate for accommodating the largest existing wide-body aircraft
When one country's currency is weak relative to other currencies, ____.
it becomes more costly to import products to the country, but its exports surge
components (partnership model)
joint activities and processes that build and sustain the partnership
risk mitigation
key is to evaluate your needs from a systems level. You may decide you need additional inventory, a backup carrier, or a new transshipment point.
Which of the following is not a characteristic of plastic packaging? a. lack of versatility b. takes a long time to biodegrade c. plastic is dependent on petroleum d. plastic litter can kill marine animals e. all of the above are characteristics of plastic packaging
lack of versatility
Failure Mode Effects Analysis
lets companies assess the priority of the things that could go wrong by factoring in the likelihood, severity, and detectability of the model - A failure mode is anything that could go wrong (i.e., your risk events). A failure "effect" is the consequence of the failure mode extends heat mapping in two ways. First, FMEA adds a third dimension: Ability to detect an event at the time of occurrence. Second, FMEA adds a simple 1-10 scoring system
The total cost of ownership is associated with which of the 10 materials handling principles?
life cycle cost principle
____ refer to major ports where thousands of containers arrive and depart each week.
load centers
A ____ raises or lowers barges so that they can meet the river's level as they move upstream or downstream.
lock
A transportation broker _____.
looks to match a shipper's freight with a carrier to transport it
planning based fulfillment
multiple forecasts throughout supply chain, push to customer, based on pure speculation, best for known demand prone to having higher inventory (and higher, unecessary costs) and often prove less responsive (disappointing customers) to changes in the marketplace ex. grocery stores
Inland waterways in the United States are dredged to a depth of ____ feet, which tends to be the minimum depth required for most barges.
nine
What is the time limitation within which a freight claim must be filed?
nine months from delivery date
Which international logistics service provider is often confused with the international freight forwarder?
non-vessel operating common carrier
Which of the following tends to be the most important factor in carrier selection? a. pricing b. loss and damage performance c. transit time reliability d. financial stability e. none of the above
none of the above
not utilizing staff talent
not challenging employees or listening to and encouraging their ideas. if this is blatant, employees can actually undermine your efforts to improve on the other seven wastes! ex. (logistics): Not listening to suggestions of drivers/warehouse personnel regarding how to improve processes, Not encouraging cross-training of employees ex. (manufacturing): people idle in one work station and behind at another because they are not cross trained, delaying production because the specialist who does a job is ill/on vacation
selective distribution
occupying a strategic position among a small number of customers or in a select region ex. craft breweries
time utility
occurs when a product arrives when it is needed. In just-in-time manufacturing, parts and components are carefully staged with precise delivery times to arrive just when they are needed for assembly or sale. Retailers, like Walmart and Costco, require that their suppliers schedule precise delivery times so that a dock and personnel are available for unloading—and in some cases to immediately re-load the goods into waiting trailers at other docks (cross docking)
backorders
occurs when seller has only a portion of the products offered by the buyer (customer keeps doing business with you) bc you fill the order twice, your costs go up and your profitability goes down
Less-than-truckload motor carriers ____.
operate through a series of terminals
Integrated air carriers ____.
own all their vehicles as well as pick up and delivery facilities
The building blocks concept is associated with which logistics function?
packaging
____ refers to materials used for the containment, protection, handling, delivery, and presentation of goods.
packaging
What has been described as the "last frontier" of logistics savings opportunities?
packaging inefficiencies
The basic unit in unit loading is a ____.
pallet
Firms that specialize in carrying packages that weigh up to 150 pounds are called ____.
parcel carriers
Which of the following is false? a. package labeling is usually done at the end of the assembly line b. pictures are preferable to words for labeling a product c. labeling regulations may differ from country to country d. labeling requirements within a particular country can vary from state to state (province to province) e. all of the above are true
pictures are preferable to words for labeling a product
____ is the most reliable form of transportation.
pipeline
4 broad supply chain strategies
planning based supply chain, lean supply chain, agile supply chain, leagile supply chain
humanitarian logistics
planning the effective flow and storage of goods as well as the exchange of information to alleviate the suffering of people ex. red cross assistance to people of Haiti in the aftermath of the 2010 earthquake.
Which of the following is not a cultural factor that can influence international logistics? a. language b. time orientation c. population d. national holidays e. all of the above are cultural factors
population
A major drawback to metal and plastic pallets is their ____.
price
risk prioritization
prioritization is the key to effective risk management with help from FMEA. (Failure Mode Effects Analysis)
It is important that the materials handling equipment be aligned with an organization's objectives, customers, and ____.
products
Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare the modes?
railroads
____ have a level of market concentration and dominance that is not found in the other modes.
railroads
Cargo preference rules ____.
require a certain percentage of traffic to move on a nation's flag vessels
Each of the following is a shipping hazard that a package may be exposed to except ____. a. retraction b. vibration c. compression d. rough handling e. all of the above are shipping hazards for a package
retraction
____ can be defined as the process of determining how a shipment will be moved between origin and destination.
routing
A ____ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred carriers, and a list of which carrier or carriers to use for shipments moving between two points.
routing guide
Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ____.
safety concerns
relational performance
service quality that demonstrates a firm's ability to understand customer needs and design processes that meet these needs -the service provider that understands customers' changing needs and proves responsive will be the best provider
operational performance
service quality that fulfills form, time, and place utilities -customers expect near perfect execution
A ____ often serves as the basis for a country's official export statistics.
shipper's export declaration
A ____ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.
shipper's mark
Which of the following is false? a. freight claims must be filed within nine months of the delivery date b. concealed loss and damage is a delicate area for shippers and carriers c. the volume of freight claims activity has dropped since transportation deregulation d. shippers or carriers are entitled to a product's full retail value when filing a freight claim e. all of the above are true
shippers or carriers are entitled to a product's full retail value when filing a freight claim
lost sales
some customers will turn to alternative supply sources
GSCF definition of supply chain management
the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. (it takes more than logistics to run a supply chain)
definition of a logistics system
the network of organizations and activities engaged in managing the movement and storage of products and services as well as the flow of information from the source to the customer
customer service
the output of the logistics function and is the place component of the marketing mix -crucial for a business to keep customers
decoupling point
the point at which the push strategy from the upstream supply chain becomes a pull strategy towards the end customers. ex. the retail store
form utility
the primary responsibility of purchasing and operations managers who acquire inputs and transform them into products or services of greater customer value -helps companies like General Mills repackage products during distribution into special sizes
event logistics
the resources (facilities, ppl and infrastructures) used to organize, deliver, and execute an event from initial schedule through teardown and clean up ex. oktober fest in munich, chinese new year in beijin, summer olympic games
With FOB destination, freight prepaid ____.
the seller pays the freight charges and owns the goods in transit
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive ____.
the wholesale price, plus freight if previously paid
Which of the following is not true of sachets?
they tend to be sold in higher-income countries
agile fulfillment
this is a "pull" system all the way back to the point of supply (and possibly inclusive of supply with-"Buy-to-Order" approach); leanest of the "Lean" models. More pull-based, but still within customer needs. Waits until their ordering ex. missle systems and see that demand, then start producing. Customization based on a pull of a demand. Wait-and-see Approach Customization Direct Distribution
How many countries in the world do not currently use the metric system of measurement?
three
how does logistics create value?
through movement, storage, and processing
____ refers to determining a shipment's location during the course of its move.
tracking
In general terms, ____ accounts for about 6% of U.S. gross domestic product.
transportation
____ is the actual, physical movement of goods and people between two points.
transportation
Weight times rate equals ____.
transportation cost
