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Logistics Management Final Exam Questions with 100%
VERIFIED Answers UPDATED!!!
Definition of Logistics - ANSWER That part of supply chain
management that plans, implements and controls the efficient,
effective forward and reverse flow and storage of goods,
services and related informations between the point of origin
and the point of consumption in order to meet customers'
requirements.
Seven Rights of Logistics - ANSWER -Product
-Customer
-Time
-Place
-Condition
-Quantity
-Cost
(if all of these are met it's called the Perfect Order)
Five utilities and how logistics influences them. - ANSWER o
Utility: perceived value
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o Possession: creating desire
o Form: repackaging, refurbishing
o Time: when needed
o Place: where exactly needed
o Quantity: right amount-breakbulk and assort
How does logistics create value? - ANSWER through movement,
storage, and processing
CSCMP definition of supply chain management - ANSWER
Encompasses the planning and management of all activities
involved in sourcing and procurement, conversion, and all
logistics management activities. Importantly, it also includes
coordination and collaboration with channel partners, which
can be suppliers, intermediaries, third party service providers,
and customers. In essence, supply chain management
integrates supply and demand management within and across
companies.
total cost concept - ANSWER View the sum of logistics
operations as a system and seek to minimize the total cost of
the system rather than the individual functions
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Logistics cost tradeoffs - ANSWER Increasing the number of
warehouses increases inventory cost but decreases
transportation costs and (often) decreases the cost of lost sales
Using faster modes of transportation decreases the cost of lost
sales
Lot quantity costs and inventory carrying costs are inversely
related
Investments in information technology should decrease the cost
of lost sales
Importance of excellent logistics customer service - ANSWER 1.
existing customers are often considered "cheaper" to sell to
2. existing customers are more loyal
3. existing customers often buy more
4. existing customers are a good source for referrals
5. lifetime value of a customer
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Deliverable of Order Fulfillment - ANSWER o Product availability
is the most basic output of an order fulfillment system
o Availability costs money
♣ Analyze tradeoffs
o Key measures
♣ Stock-out frequency
♣ Fill Rate
♣ Orders shipped complete
Methods for establishing a customer service strategy - ANSWER
• Establishing an Appropriate logistics customer service strategy
o Determine channel service levels based on knowledge of
consumer reactions to stock-outs
o Examine cost/revenue trade-offs
o Use ABC analysis for customers and products
o Conduct a customer service audit
The Cost of Stock-Outs - ANSWER back orders, lost sales, lost
customers
Logistics Management Final Exam Questions with 100%
VERIFIED Answers UPDATED!!!
Definition of Logistics - ANSWER That part of supply chain
management that plans, implements and controls the efficient,
effective forward and reverse flow and storage of goods,
services and related informations between the point of origin
and the point of consumption in order to meet customers'
requirements.
Seven Rights of Logistics - ANSWER -Product
-Customer
-Time
-Place
-Condition
-Quantity
-Cost
(if all of these are met it's called the Perfect Order)
Five utilities and how logistics influences them. - ANSWER o
Utility: perceived value
,2|Page
o Possession: creating desire
o Form: repackaging, refurbishing
o Time: when needed
o Place: where exactly needed
o Quantity: right amount-breakbulk and assort
How does logistics create value? - ANSWER through movement,
storage, and processing
CSCMP definition of supply chain management - ANSWER
Encompasses the planning and management of all activities
involved in sourcing and procurement, conversion, and all
logistics management activities. Importantly, it also includes
coordination and collaboration with channel partners, which
can be suppliers, intermediaries, third party service providers,
and customers. In essence, supply chain management
integrates supply and demand management within and across
companies.
total cost concept - ANSWER View the sum of logistics
operations as a system and seek to minimize the total cost of
the system rather than the individual functions
,3|Page
Logistics cost tradeoffs - ANSWER Increasing the number of
warehouses increases inventory cost but decreases
transportation costs and (often) decreases the cost of lost sales
Using faster modes of transportation decreases the cost of lost
sales
Lot quantity costs and inventory carrying costs are inversely
related
Investments in information technology should decrease the cost
of lost sales
Importance of excellent logistics customer service - ANSWER 1.
existing customers are often considered "cheaper" to sell to
2. existing customers are more loyal
3. existing customers often buy more
4. existing customers are a good source for referrals
5. lifetime value of a customer
, 4|Page
Deliverable of Order Fulfillment - ANSWER o Product availability
is the most basic output of an order fulfillment system
o Availability costs money
♣ Analyze tradeoffs
o Key measures
♣ Stock-out frequency
♣ Fill Rate
♣ Orders shipped complete
Methods for establishing a customer service strategy - ANSWER
• Establishing an Appropriate logistics customer service strategy
o Determine channel service levels based on knowledge of
consumer reactions to stock-outs
o Examine cost/revenue trade-offs
o Use ABC analysis for customers and products
o Conduct a customer service audit
The Cost of Stock-Outs - ANSWER back orders, lost sales, lost
customers
