DB 320 EXAM 2 (2) || 100% VALID SOLUTIONS.
Interrelated components of a system correct answers transportation, materials handling, order
processing, packaging, inventory control, warehousing
transportation correct answers most fundamental and necessary component, accounts for the
highest percentage of the total cost of logistics
Overriding issue of transportation correct answers Choosing the optimum mode of transportation
to meet customer service demands
Economy of distance correct answers the cost per unit of distance decreases as distance increases
because the tapering principle spreads fixed costs over a larger distance base
Economy of scale correct answers the cost per unit of weight decreases as the size of the
shipment increases because fixed costs can be spread over a larger weight base
dead head correct answers cost of carrying nothing in your truck
third party logistics correct answers specialize in performing most or all of the logistical tasks
that manufacturers or other channel members would normally perform themselves, provide
service at lower cost than the firms who hire them, currently growing rapidly into a major
industry, services include transportation, warehousing, cross-docking, inventory management,
packaging, and freight forwarding
fourth party logistics correct answers act as a single interface between the client and multiple
logistics service providers, manage all existing supply chain needs for the client
Materials handling correct answers range of activities and equipment involved in the placement
and movement of product in storage areas
Issues of materials handling correct answers minimize the distance products are moved within
the warehouse during the course of receiving, storage, and shipping. choosing the kinds of
mechanical equipment and technology that should be used. making the best use of labor when
receiving, shipping, and handling products
dock level decisions correct answers tactical planning and control activities concerned with
making and receiving shipments and loading and unloading freight, routing/ scheduling, loading,
load planning, unloading, order picking
benefits of dock level decisions correct answers greater vehicle utilization, improved and more
responsive customer service, reduced transportation expenses, reduced capital investment in
equipment
order processing correct answers Its importance in logistics lies in its relationship with order
cycle time—the time between when an order is placed & when it is received by the customer
Interrelated components of a system correct answers transportation, materials handling, order
processing, packaging, inventory control, warehousing
transportation correct answers most fundamental and necessary component, accounts for the
highest percentage of the total cost of logistics
Overriding issue of transportation correct answers Choosing the optimum mode of transportation
to meet customer service demands
Economy of distance correct answers the cost per unit of distance decreases as distance increases
because the tapering principle spreads fixed costs over a larger distance base
Economy of scale correct answers the cost per unit of weight decreases as the size of the
shipment increases because fixed costs can be spread over a larger weight base
dead head correct answers cost of carrying nothing in your truck
third party logistics correct answers specialize in performing most or all of the logistical tasks
that manufacturers or other channel members would normally perform themselves, provide
service at lower cost than the firms who hire them, currently growing rapidly into a major
industry, services include transportation, warehousing, cross-docking, inventory management,
packaging, and freight forwarding
fourth party logistics correct answers act as a single interface between the client and multiple
logistics service providers, manage all existing supply chain needs for the client
Materials handling correct answers range of activities and equipment involved in the placement
and movement of product in storage areas
Issues of materials handling correct answers minimize the distance products are moved within
the warehouse during the course of receiving, storage, and shipping. choosing the kinds of
mechanical equipment and technology that should be used. making the best use of labor when
receiving, shipping, and handling products
dock level decisions correct answers tactical planning and control activities concerned with
making and receiving shipments and loading and unloading freight, routing/ scheduling, loading,
load planning, unloading, order picking
benefits of dock level decisions correct answers greater vehicle utilization, improved and more
responsive customer service, reduced transportation expenses, reduced capital investment in
equipment
order processing correct answers Its importance in logistics lies in its relationship with order
cycle time—the time between when an order is placed & when it is received by the customer
