LOGISTICS MANAGEMENT FINAL REVIEW EXAM QUESTIONS AND
CORRECT ANSWERS
logistics - ANSWER part of supply chain management that plans,
implements, and controls the flow or storage of goods, services, and
related information to meet customers requirements
seven rights of logistics - ANSWER 1. product
2. customer
3. time
4. condition
5. quantity
6. place
7. cost
five utilities and how logistics influences them - ANSWER 1.
possession- creating desire, marketing
2. form- repackaging, refurbishing
3. time- when needed
4. place- exactly where needed
5. quantity- right amount, break bulk and assort
how does logistics create value - ANSWER utility- economic term used
to describe perceived value
CSCMP definition of supply chain management - ANSWER planning
and maintaining of all activities involved in sourcing and procurement,
conversion, and all logistics management activities. Also includes
coordination and collaboration with channel patterns, which can be
suppliers, intermediaries, third party providers, and customers. Supply
chain management integrates supply and demand management within
and across companies
GSCF definition of supply chain management - ANSWER the
integration of key business processes from end user through original
suppliers that provides products, services, and information that add
value for customers and other stakeholders
, the total cost concept - ANSWER the sum of logistics operations as a
system and seek to minimize the total cost of the system rather than the
individual function
simplify - ANSWER a place for everything and everything has its place
importance of excellent logistics customer service - ANSWER 1.
Cheaper
2. Loyal
3. Buy more
4. Referrals
5. Lifetime value of customer
deliverables of order fulfillment - ANSWER 1. Availability (most basic
output)
2. Delivery (speed, consistency, flexibility)
3. Transparency (improves planning, execution, and evaluation)
4. Service recovery (contingency planning lifeycle)
5. Operational Efficiency (identify cost-service trade- offs and calculate
costs and benefits of service offering
Methods for establishing a customer service strategy - ANSWER 1.
Determine channel service labels based on knowledge of customer
reactions to strikeouts
2. Examine cost/ revenue trade offs
3. use ABC analysis for customers and products
4. conduct a customer service audit
how to measure lifetime customer value - ANSWER Life expectancy=
(avg. transaction) x (yearly frequency) x (customer)
cost of stock outs - ANSWER back orders (product is out, lost sales,
lost customers)
definition of logistics system - ANSWER the network of organizations
and activities engaged in managing the movement and storage of
products and services as well as the flow of information from the source
to the customer
Four broad supply chain strategies - ANSWER 1. the planning based
supply chain
2. the lean supply
3. the agile supply
CORRECT ANSWERS
logistics - ANSWER part of supply chain management that plans,
implements, and controls the flow or storage of goods, services, and
related information to meet customers requirements
seven rights of logistics - ANSWER 1. product
2. customer
3. time
4. condition
5. quantity
6. place
7. cost
five utilities and how logistics influences them - ANSWER 1.
possession- creating desire, marketing
2. form- repackaging, refurbishing
3. time- when needed
4. place- exactly where needed
5. quantity- right amount, break bulk and assort
how does logistics create value - ANSWER utility- economic term used
to describe perceived value
CSCMP definition of supply chain management - ANSWER planning
and maintaining of all activities involved in sourcing and procurement,
conversion, and all logistics management activities. Also includes
coordination and collaboration with channel patterns, which can be
suppliers, intermediaries, third party providers, and customers. Supply
chain management integrates supply and demand management within
and across companies
GSCF definition of supply chain management - ANSWER the
integration of key business processes from end user through original
suppliers that provides products, services, and information that add
value for customers and other stakeholders
, the total cost concept - ANSWER the sum of logistics operations as a
system and seek to minimize the total cost of the system rather than the
individual function
simplify - ANSWER a place for everything and everything has its place
importance of excellent logistics customer service - ANSWER 1.
Cheaper
2. Loyal
3. Buy more
4. Referrals
5. Lifetime value of customer
deliverables of order fulfillment - ANSWER 1. Availability (most basic
output)
2. Delivery (speed, consistency, flexibility)
3. Transparency (improves planning, execution, and evaluation)
4. Service recovery (contingency planning lifeycle)
5. Operational Efficiency (identify cost-service trade- offs and calculate
costs and benefits of service offering
Methods for establishing a customer service strategy - ANSWER 1.
Determine channel service labels based on knowledge of customer
reactions to strikeouts
2. Examine cost/ revenue trade offs
3. use ABC analysis for customers and products
4. conduct a customer service audit
how to measure lifetime customer value - ANSWER Life expectancy=
(avg. transaction) x (yearly frequency) x (customer)
cost of stock outs - ANSWER back orders (product is out, lost sales,
lost customers)
definition of logistics system - ANSWER the network of organizations
and activities engaged in managing the movement and storage of
products and services as well as the flow of information from the source
to the customer
Four broad supply chain strategies - ANSWER 1. the planning based
supply chain
2. the lean supply
3. the agile supply
