Quiz 5 Supply Chain Management, Logistics, and Transportation

Logistics managers frequently make cost trade-offs between transportation and other logistics functions, such as inventory. To reduce safety stock, they would:

Increase transportation spend to obtain a more reliable [on-time] carrier

The objective of a cost trade-off analysis of different logistical scenarios is to:

arrive at the best, or lowest, overall system cost

Profit leverage is important to logistics managers because it:

demonstrates how logistics cost savings directly affect the bottom line [profitability] of the firm

Transportation variability affects logistics management through:

higher safety stock levels

The supply chain management concept:

is not new—represents the third phase of an evolution that began in the 1960s with physical distribution and evolved into integrated logistics management in the 1980s before being expanded to the supply chain in the 1990s

The financial flow represents one of the major flows within a supply chain. One form of the financial flow is the "free" cash flow. The free cash flow refers to:

negative working capital resulting from collecting from customers before paying suppliers

Logistics can be viewed as an evolutionary development from:

physical distribution or the management of outbound flow of products to customers

Logistics and marketing closely related due to:

the "place" component of the marketing mix which sets the customer service objectives for logistics

Reverse logistics refers to:

the return of products due to damage, maintenance, obsolescence, or recycling

The integration of materials management and physical distribution resulted in what we know as logistics. This integration enabled logistics managers to:

Coordinate inbound and outbound transportation to minimize backhauls and lower rates

The authors define supply chain management as the management of several flows across the supply chain. Which of the following is not identified as a supply chain process in the text?

Logistics

In the required reading, supply chain management is defined. We can best think of supply chain management as:

Managing key business processes across multiple firms from source to final end user

The increase in internet purchases has:

Put pressure on the logistics and transportation networks due to the explosion in the number of small package deliveries.

An inherent characteristic of the business logistics approach is total cost analysis. A total cost analysis:

Requires the decision-maker to consider cost trade-offs within the system.

The logistics and supply chain management concepts have evolved over time. The text suggests logistics has evolved from:

The integration of physical distribution and materials management