Logistics Final 3380
How much did out of stock cost retailers in 2010?
$435 billion
Define logistics
- a 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 point of consumption in order to meet customers requirements
What are examples of service logistics?
-Delta serving wine and food -banking forms and work being the scenes
What are examples of military logistics?
-australia's regional assistance mission to the Solomon Islands to help provide security
Whats are examples of event logistics?
-concerts -big football game at OSU -oktoberfest in Munich -Chinese New Year in Beijing -Summer Olympic Games
What is a part of the aspects of planning?
-flow of info -tracking -visibility
What is an example of service logistics?
-hair salon -hospital operations
Why is it so hard to keep product on the shelf?
-iphone -social media -influencers
3 main aspects of logistics
-movement -storage -planning
What is an example of passenger logistics?
-scheduled or private flights, bus rides, and car travel -uber
Logistics professors can be which 3 areas of logistics?
-strategy -operations -analytics
What are the 3 types of utility in logistics?
-time utility -place utility -quantity utility
What is a part of the aspects of storage?
-warehousing -in-transit
What are the 4 customer order fulfillment categories?
1. availability 2. delivery 3. transparency 4. recovery
What do people expect of shipping even in rural areas?
2 day shipping
How many categories does customer order fulfillment have?
4
_______% practice showrooming
41%
______________% expect to BOPUS
50%
Retail out of stocks are between ____% and _____%
7-10%
Over a four-day period, a customer orders from a supplier everyday. The customer orders 50 units on days one and three, and doubles their order on days two and four. If the supplier doesn't have inventory availability to service the customer on the fourth day, what is the fill rate? A. 67% B. 3/4 C. 75% D. 200 units E. 3 days
A. 67%
The term BOPUS stands for: A. Buy online pick up at store B. Business operations and production using sales C. Business ordering processing utility solution D. none of these
A. buy online pick up at store
Which of the following is the correct explanation of "reverse logistics"? A. The logistics processes involved in getting product from the customer market B. The financial process of breaking down total logistics costs C. The "reverse engineering" of a competitors logistics network D. The strategic planning of how trucks back in to loading docks
A. the logistics processes involved in getting product from the customer market
Which type of logistics activity involves the flow and storage of goods and exchange of information for the purposes of alleviating the suffering of people? A. Event Logistics B. Humanitarian Logistics C. People Logistics D. Crisis Logistics E. Service Logistics
B. Humanitarian Logistics
Which expression below is NOT true, in describing customers expectations of "timely delivery"? A. Customers want deliveries that are flexible and responsive B. Customers want deliveries that are free and/or reasonably priced C. Customers expect delivery lead times that are consistent D. Customers want deliveries that don't involve long lead times
B. customers want deliveries that are free and/or reasonably priced
The "transparency" component of logistics service involves... A. Providing customers with visibility of the logistics executives within the company B. Providing customers with visibility of the status of their orders C. Providing customers with visibility of the costs involved in servicing them D. Providing customers with visibility of the firm's financial records
B. providing customers with visibility of the status of their orders
What is the best way to manage risk?
Be flexible
What is BOPUS?
Buy online pick up in store
Calculate the expected cost per stockout with the following information: Probability of a backorder is 60%, lost sale is 20%, and the probability of a lost customer is 20%. The cost per incident of a backorder is $100, lost customer is $100,000. Customers typically order in 100 unit quantities, and the company makes $20 per unit. A. $20,400 B. $22,060 C. $20,460 D. $102,100 E. Neither of these is the expected stockout cost
C. $20,460
The number that is affixed to inventory for identification, tracking, and management purposes is called: A. ID tag B. Point-of-sale (POS) C. Stock Keeping Unit (SKU) D. certification number
C. Stock keeping unit (SKU)
In the context of "availability" in logistics services, the phrase "SDL" refers to: A. Service dominated logistics B. Standard delivery logistics C. Switch, Delay, Leave D. Succeed, Dominate, Leverage E. Strategically-developed logistics
C. Switch, Delay, leave
PIIS and PTIS, as two measures of inventory availability, differ in what way? A. PIIS is generally more about total inventories, PTIS is usually about a certain SKU B. PIIS is in units, PTIS is in increments of time C. All three (3) of the other answers D. PIIS measures what's available, PTIS measures when it's available
C. all 3 of the other answers
Which of the following demonstrates a common tradeoff / relationship observed in logistics? A. When an item is highly susceptible to loss and damage, warehousing cost decreases. B. As inventory investment (quantity) goes up, the cost of lost sales also increases. C. As the quality of service increases, the cost of inventory, transportation, and packaging increases. D. As inventory investment (quantity) goes up, inventory cost goes down E. With increased product density, transportation costs increase.
C. as the quality of services increases ,the cost of inventory, transportation, and packaging increases
What is thew new era called that we are in?
Century of the consumer
If your a company and are decently large and do manufacture, what country are you almost always working with?
China
What does CSCMP stand for?
Council for supply chain management professionals
Which of the following provisions is NOT one of the Seven "Rights" of Logistics? A. Right quantity B. Right product C. Right time D. Right excuse E. Right Cost
D. Right Excuse
While Logistics influences all five economic utilities, it is primarily responsible for fulfilling which three utilities? A. Place, Quantity, and posession B. Form, Place and Time C. Posession, form, and place D. Time, possession, and form E. Time, Place, quantity
D. Time, place and quantity
As the number of distribution facilities in a logistics network increases, what happens to the cost of lost sales? A. cost of lost sales increases B. cost of lost sales stay flat C. cost of lost sales doubles D. cost of lost sales decreases
D. cost of lost sales decreases
What has emerged as a vital customer service metric that measures inventory availability at retail? A. Point-of-Sale Performance B. Item Profitability C. On-Time, In-Full D. On-Shelf Availability E. Customer Satisfaction
D. on-shelf availability
What is said to be a danger of "over servicing" some customers' expectations? A. Those customers begin to compare your service with your competitors B. Those customers can no longer differentiate your service from others C. The federal government often steps in to prevent monopolizing activity D. You risk "under servicing" other customers because of limited resources
D. you risk "under servicing" other customers because of limited resources
When aligned to support customer value=?
Delivering your promises to your customer
Who is the largest wine customer?
Delta airlines
The term referring to product distribution channels that involve the integration of brick-and-mortar retail store locations and online/mobile retail is: A. intermediate movement B. Inbound logistics C. Physical Procurement D. Materials Management E. Omni-channel retail
E. Omni-Channel Retail
Which activity is NOT a primary responsibility of logistics management? A. Transportation management B. Demand Forecasting C. Inventory Management D. Product Packaging E. Product Advertising
E. Product Advertising
The fundamental trade-off involved in managing logistics is: A. Balancing products and services B. Balancing logistics talent and logistics information C. Balancing movement and storage D. Balancing time and place E. Balancing logistics costs and logistics service
E. balancing logistics costs and logistics services
Backorders occur when you do not have inventory in stock and your customer . . . ? A. Decides to take her future business elsewhere. B. Switches to a different brand. C. Cancels the order because she decides she has enough inventory already. D. Tells other potential customer to avoid your business. E. Decides to keep their business with your organization and wait for the desired product.
E. decides to keep their business with your organization and wait for the desired product
What are the other forms of logistics besides business logistics?
Event logistics Passenger logistics Military logistics Service logistics Humanitarian logistics
True or False: Generally speaking, firms tend to have more "A" customers than they do "C" customers.
False
True or False: Global Logistics is viewed as similar in complexity to Domestic Logistics.
False
True or False: Logistics and Supply Chain Management are two disciplines that are un-related.
False
True or False: Logistics is a discipline that emerged from the Finance discipline.
False
True or False: The "Lead Time" ends when a product is delivered to a customer's dock or door
False
True or false: Stockouts are generally viewed as an indicator that logistics decision are being made effectively.
False
True or false: Fulfilling orders is easy
False, its hard
What is the OLD way of last-mile logistics?
Going to store and shopping
Which is the most popular logistics currently?
Humanitarian logistics
What company said this? "In retailing, the biggest single customer-service complaint is not having the item." "Otherwise its like inviting someone to your house and not offering them a seat"
Kohl's
What does NPD stand for?
New product development
What is an example of humanitarian logistics?
Red Cross assistance to people of Haiti in the aftermath of 2010 earthquake
What is the logistics issue with product variety?
SKU in managing inventory bc when ^# products=^SKU to manage= more products/inventory to manage= more complexity -also trying to fit more variety in the same shelf space
What are the 7 Rights (R's) of logistics?
The right product to the right customer at the right time in the right condition at the right quantity at the right place for the right cost
True or False: A perfect order is one that is received, processed, picked, packed, shipped, documented, and delivered on-time without damage.
True
True or False: One of the primary risks that firms that have to deal with relative to logistics is weather.
True
True or False: The Perfect Order Index is a composite measure calculated by multiplying the performance levels of various logistics service components.
True
True or false: In terms of logistics service costs, customers that order in pallet-sized quantities are typically less expensive to serve than customers that order in case quantities or individual-unit quantities.
True
True or false: SCM focused companies outperform their competitors
True
What is one of the main risks in logistics?
Weather
What are stockout?
When the product is not there/ empty shelves
Is the SCM competitive advantage more sustainable?
Yes
What is last-mile logistics?
all of the logistics required to get things to the homes of people that purchase things
What is service logistics?
all the people, facilities, and supplies in place to effectively deliver service to customers
Being good at logistics = being good at _____?
being good at tradeoffs
What is break-bulking?
breaking down a large quantity and putting into smaller quantities
Social media sites now launch ________ buttons to the "social to commercial conversion"
buy now
What is BOSS?
buy online and ship from store
What is a core tradeoff in logistics?
cost and service tradeoffs
Logistics management involves balancing _____ and ______ ______. finding the optimal mix of logistics components
costs and customer service
What is an omni channel?
customers should be able to operate in each channel and in multiple channels
What does it mean when there are empty shelves?
demand> supply
What is humanitarian logistics?
effective planning, flow, and storage of goods, and information to alleviate the suffering of people
What is place utility?
exactly where needed
Define supply chain management
integrates supply and demand management within and across companies
The Pathway to purchase has become increasingly __________
mobile
What is a side effect of the pathway to purchase becoming increasingly mobile?
more impulse shopping is harder to forecast
What is military logistics?
moving groups of people and supplies, setting up camps, replenishing supplies and people, breaking
What is passenger logistics?
moving people
What are BOPUS and BOSS?
omni-channel strategies
Logistics is the art and science of ____________-
place
What is assorting?
pulling together things that need to be together
What is quantity utility?
right amount- breakout & assort
What is the biggest reasoning for abandoning your cart?
shipping! time and cost
What is the NEW way of last-mile logistics?
store doing it for us and we shop online
What is event logistics?
the resources used to organize, deliver, and execute an event from initial schedule through teardown and clean up
Why do companies create product variety?
to appeal to diff customers (using segmentation/ target market) tastes and wants/needs
What is a part of the aspects of movement?
transportation
What is economic utility?
value that is being provided
What is time utility?
when needed
What is a problem with BOPUS or BOSS?
you could order something and by the time that your item is picked up in the warehouse, the inventory could have all been picked up and shipped out even though you already bought it