Ch. 13 Logistics

What issue does the order processing department face?

Developing an efficient order processing system.

What department does the firm's attempt to hold the lowest level of inventory to meet customer demand fall under?

Inventory Control

What does supply chain management do?

It emphasizes inter-organizational cooperation to integrate the logistical operations of the different firms in the channel.

What is the range of activities and equipment involved in the placement and movement of products in storage areas?

Materials Handling

The following issues happen in which department? a. minimizing distance products are moved in warehouses during the receiving, storage, and shipping b. Choosing the machine equipment c. make best use of labor when receiving, shipping, and handling products.

Materials Handling department

Under the total cost approach, what does management attempt to do?

Minimize the cost of using the components taken as a whole.

What costs can affect the other components of the logistics system?

Packaging and its associated costs

What is logistics?

Planning, implementing, and controlling the physical flows of materials and final goods from points of origin to points of use to meet customers' needs at a profit.

Third-party logistics (3PL) provider

Specialize in performing most or all of the logistical tasks that manufacturers or other channel members would normally perform themselves.

What are the basic components of a logistic system?

Systems approach + Total cost approach.

How is transportation an issue the firm faces?

The firm needs to choose the optimum mode of transportation to meet customer service demands.

What is the role of logistics in marketing?

The movement of the right amount products to the right place at the right time.

Who provides services at lower cost than the firms who hire third-party providers?

Third-party logistics providers (3PL)

What's the purpose of a warehouse?

To hold products until they are ready to be sold.

What is the most fundamental and necessary component in logistics?

Transportation

What are the interrelated components of a system?

Transportation, materials handling, warehousing, inventory control, packaging, and order processing.

True or False: Keeping inventory at the lowest possible level while placing order for goods in large quantities is an issue the department of inventory control faces?

True

True or False: Order Cycle Time is the same to lead time?

True

True or False: The number, location, and design of warehouse facilities affects the logistics of the business.

True

True or False: Transportation accounts for the highest percentage of the total cost of logistics?

True

True or False: Under a systems concept, management views logistics as a system of interrelated components?

True

What issue does use of packaging to improve efficiency of the logistics fall into? a. Packaging b. Warehousing c. Inventory Control d. Order Processing

a. Packaging

What is channel management concerned with? a. Product Flow b. Channel Flow c. Retail Flow d. Customer Service

b. Channel Flow

What is logistics management concerned with? a. Channel Flow b. Product Flow c. Customer Service d. Retail Flow

b. Product flow

Which of the following is not a logistics service standards? a. Time from order receipt to order shipment. b. Percentage of items out of stock c. Percentage of order filled accurately d. Percentage of order that arrive in good condition e. Ease and flexibility of order placement f. Minimize out of stock occurrences

f. Minimize out of stock occurrences

What is lead time?

the time between when an order is placed and when it is received by the customer.