Logistics: Module 1 -- What is Logistics Management?

Name the 5 types of logistics and an example

1. Event logistics ( olympics) 2. Passenger logistics (airplane flights) 3. Military logistics 4. Service logistics (hospital operations) 5. Humanitarian logistics (red cross assistance during natural disaster)

Name the components of inventory carrying cost (4)

1. capital/OC 2. inventory service cost 3. storage space cost 4. inventory risk cost

Name the components of warehousing costs (2)

1. costs as a result of the number of houses 2. costs as a result of the location of houses

LG/MK interface activities (4)

1. customer service 2. pricing 3. packaging 4. retail location

Name the components of cost of service level (3)

1. customer service cost 2. cost of parts and service support 3. cost of returns handling

Name the 8 wastes

1. defects 2. overproduction 3. waiting 4. not utilizing staff talent 5. transportation 6. inventory 7. motion 8. excess processing

What are 2 challenges that orgs face with the increasing role of IT and info

1. drowning in data --> turn this into something useful 2. sharing info between firms in SC requires trust

Name 6 logistics issues today

1. environmental uncertainty 2. risk management 3. sustainability 4. consolidation in the transportation and 3PL sectors 5. user friendly analytics tools 6. multi-channel and cross-channel order fulfillment

Name the production economic utilities

1. form

Name the components of transportation costs (1)

1. inbound and outbound transportation costs

Name 6 reasons executives are focusing more on logistics

1. increasing competitive pressures 2. shift in channel power 3. globalization 4. development of IT systems and the increasing importance of information 5. Increased product proliferation 6. increased number of delivery points

Name the components of order processing/info costs (3)

1. order processing cost 2. cost of logistics communications 3. information systems costs

LG/PD interface activities (3)

1. product scheduling 2. plant location 3. purchasing

Name the components of lot quantity costs (4)

1. production set-up cost 2. cost of lost capacity 3. material handling 4. procurement cost

List the 7 rights of logistics

1. right product to the 2. right customer 3. at the right time 4. in the right condition 5. in the right quantity 6. at the right place 7. for the right cost

The 5Ss

1. sort 2. simplify 3. sweep 4. standardize 5. sustain

Name the logistics economic utilities

1. time 2. place 3. quantity

Name the costs of logistics in order from biggest to smallest

1. transportation 2. inventory carrying cost 3. other

Name the marketing economic utilities

1. utility 2. possession

What forms the critical link in the supply chain

CRM and SRM

Gatherings of people who are involved in the day to day management of the process

Kaizen events

Define logistics management

The part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of G/S and related info between the point of origin and point of consumption in order to meet customers' requirements

Total cost concept

View the sum of logistics operations as a system and try to minimize the total cost of the system rather than the individual functions

The development of ___ ___ ____ has resulted in a shift of channel power from manufacturers to retailers

category killer stores

sweep

clean and organize as you go

With the move towards lean operations, inventory levels have been

consistently reduced

Information and visibility within and across organizations improves ...

cost performance and operational efficiency

possession =

creating desire

Investments in IT should ___ cost of lost sales

decrease

Using faster modes of transportation ___ cost of lost sales

decreases

Marketing/logistics relationship

demand realization and/or creation -> <- demand satisfaction

sort

eliminate unneeded items from area, store things not needed now

Fundamental concept of LEAN

eliminate waste -- everything that does not add value to meet customers' needs as efficiently and effectively as possible

simplify

have a logical place that everything fits

standardize

have a set process to maintain workplace order

Increasing the number of warehouses ____ inventory costs and ____ cost of lost sales

increases, decreases

SKU proliferation increases the challenges of

inventory management

Lot quantity costs and inventory carrying costs are ____ related

inversely

Superior service creates a

lock in whereby it is harder for the buyer to find a substitute for the supplier

Supply chains are becoming increasingly ___ due to sourcing materials from throughout the world

longer

utility =

perceived value

What is the hardest component for competitors to replicate of the marketing mix components

place/customer service

Creating an accurate depiction of a process and performance

process mapping

What is one way a company can outcompete others in its industry

providing outstanding customer service

form =

repackaging, refurbishing

Manufacturer must be able to handle ___ orders

smaller

Logistics competency provides one way for .... with an absolute cost advantage stemming from scales economies

smaller firms to differentiate themselves from larger competitors

Why have companies greatly increased the number of product offerings within categories

to try and secure niche customers