LSCM 4560 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
We can consider supply chain management to be:
An extended enterprise that crosses the boundaries of multiple firms
The reverse flow of returned, damaged, or obsolescent inventory
The integration of inbound and outbound logistics
The logistics flows that span a supply chain
Limited to the exchange of information across firms in the supply chain - Answers - An
extended enterprise that crosses the boundaries of multiple firms
The authors argue that supply chain management is not a new concept. Rather, supply
chain management represents the third phases of an evolution that started in the 1960s.
The first two phases included:
Physical distribution and materials management
Supply management and chain distribution
Physical distribution and business logistics
Transportation and logistics management
Materials management and physical distribution - Answers - Physical distribution and
business logistics
Supply chain management refers to:
The integration of production, information, and cash flows across multiple firms.
The integration of physical distribution activities.
The integrated management of inbound flows into a firm.
The management of product flows across multiple firms
The management of logistical process outside the firm. - Answers - The integration of
production, information, and cash flows across multiple firms
Logistics in its simplest form [definition]:
,Includes those functions and activities that are only related to the inbound flow of goods
to the firm
Integrates those functions and activities that are only associated with the outbound flow
of goods from the firm
Represents an extended enterprise that crosses the boundaries of individual firms to
span the product/service, financial, and information flows
Combined inbound flows [materials management] with the outbound [physical
distribution] flows for a firm focuses on maximizing possession utility - Answers -
Combined inbound flows [materials management] with the outbound [physical
distribution] flows for a firm
Which of the following is the management of the flows or activities associated with the
handling and movement of finished goods?
physical distribution
materials management
information
transportation
electronic data interchange - Answers - physical distribution
How are the concepts of logistics and supply chain management related to one
another?
Synonymous. They are the same concept.
Supply chain management is a sub-process of logistics.
Logistics is a subset of supply chain management.
Not related-logistics deals with intra-company flows, and supply chain management
concentrates only on relationships between firms.
Family (blood) relationship - Answers - Logistics is a subset of supply chain
management.
Logistics, as we know it today, has resulted from the integration of:
Materials management and physical distribution
Supply chain management and operations
Warehousing and transportation
Purchasing and inventory management - Answers - Materials management and
physical distribution
, A key relationship exists between marketing and logistics. The relationship can be
explained by:
Marketing representing the inbound flows to a firm and logistics representing the
outbound flows from the firm.
the utility these functions create.Marketing and logistics both create time and place
utility.
derived demand--marketing efforts create the demand for logistics services.
Logistics delivering product to the customer and enabling marketing to provide
possession utility.
the 4Ps of marketing. Logistics represents the place, or customer service, component
of marketing. - Answers - the 4Ps of marketing. Logistics represents the place, or
customer service, component of marketing.
The total cost approach for managing logistics suggests
Logistics managers may need to raise costs in one area to obtain more than off-setting
cost reductions in another area to lower overall total costs
Managers should be evaluated on their ability to drive down costs in each logistics area
Logistics functions can be effectively managed by different organizational units within
the firm (marketing, finance, and operations)
Managers should always trade-off logistics costs against revenue improvements -
Answers - Logistics managers may need to raise costs in one area to obtain more than
off-setting cost reductions in another area to lower overall total costs
The underlying logic of the systems concept was the rationale for the development of
logistics. The systems concept involves:
the use of information systems to replace or reduce the cost of holding inventory
managing logistics flows and processes across multiple firms in a supply chain
making trade-off analyses to lower total logistics costs
the ability to make trade-offs between logistics, manufacturing, finance and marketing
the integration of marketing and logistics within the firm - Answers - making trade-off
analyses to lower total logistics costs
ANSWERS
We can consider supply chain management to be:
An extended enterprise that crosses the boundaries of multiple firms
The reverse flow of returned, damaged, or obsolescent inventory
The integration of inbound and outbound logistics
The logistics flows that span a supply chain
Limited to the exchange of information across firms in the supply chain - Answers - An
extended enterprise that crosses the boundaries of multiple firms
The authors argue that supply chain management is not a new concept. Rather, supply
chain management represents the third phases of an evolution that started in the 1960s.
The first two phases included:
Physical distribution and materials management
Supply management and chain distribution
Physical distribution and business logistics
Transportation and logistics management
Materials management and physical distribution - Answers - Physical distribution and
business logistics
Supply chain management refers to:
The integration of production, information, and cash flows across multiple firms.
The integration of physical distribution activities.
The integrated management of inbound flows into a firm.
The management of product flows across multiple firms
The management of logistical process outside the firm. - Answers - The integration of
production, information, and cash flows across multiple firms
Logistics in its simplest form [definition]:
,Includes those functions and activities that are only related to the inbound flow of goods
to the firm
Integrates those functions and activities that are only associated with the outbound flow
of goods from the firm
Represents an extended enterprise that crosses the boundaries of individual firms to
span the product/service, financial, and information flows
Combined inbound flows [materials management] with the outbound [physical
distribution] flows for a firm focuses on maximizing possession utility - Answers -
Combined inbound flows [materials management] with the outbound [physical
distribution] flows for a firm
Which of the following is the management of the flows or activities associated with the
handling and movement of finished goods?
physical distribution
materials management
information
transportation
electronic data interchange - Answers - physical distribution
How are the concepts of logistics and supply chain management related to one
another?
Synonymous. They are the same concept.
Supply chain management is a sub-process of logistics.
Logistics is a subset of supply chain management.
Not related-logistics deals with intra-company flows, and supply chain management
concentrates only on relationships between firms.
Family (blood) relationship - Answers - Logistics is a subset of supply chain
management.
Logistics, as we know it today, has resulted from the integration of:
Materials management and physical distribution
Supply chain management and operations
Warehousing and transportation
Purchasing and inventory management - Answers - Materials management and
physical distribution
, A key relationship exists between marketing and logistics. The relationship can be
explained by:
Marketing representing the inbound flows to a firm and logistics representing the
outbound flows from the firm.
the utility these functions create.Marketing and logistics both create time and place
utility.
derived demand--marketing efforts create the demand for logistics services.
Logistics delivering product to the customer and enabling marketing to provide
possession utility.
the 4Ps of marketing. Logistics represents the place, or customer service, component
of marketing. - Answers - the 4Ps of marketing. Logistics represents the place, or
customer service, component of marketing.
The total cost approach for managing logistics suggests
Logistics managers may need to raise costs in one area to obtain more than off-setting
cost reductions in another area to lower overall total costs
Managers should be evaluated on their ability to drive down costs in each logistics area
Logistics functions can be effectively managed by different organizational units within
the firm (marketing, finance, and operations)
Managers should always trade-off logistics costs against revenue improvements -
Answers - Logistics managers may need to raise costs in one area to obtain more than
off-setting cost reductions in another area to lower overall total costs
The underlying logic of the systems concept was the rationale for the development of
logistics. The systems concept involves:
the use of information systems to replace or reduce the cost of holding inventory
managing logistics flows and processes across multiple firms in a supply chain
making trade-off analyses to lower total logistics costs
the ability to make trade-offs between logistics, manufacturing, finance and marketing
the integration of marketing and logistics within the firm - Answers - making trade-off
analyses to lower total logistics costs
