SCM344 Midterm Exam Review
What is logistics? - Logistics management (business logistics): The part of supply chain
management that plans, implements, and controls the efficient, effective forward and
reverses flow and storage of goods, services and related information between the point
of origin and the point of consumption in order to meet customers' requirements.
What is Logistics Management? - o Movement
o Storage
o Planning
- Demand management
- Inventory management
Information definition for logistics management - - Seven rights of logistics
o Right product to the
o Right customer
o At the right time
o In the right condition
o In the right quantity
o At the right place
o for the right cost
Types of logistics ? - - Military Logistics
- Event logistics
- Service logistics
- Humanitarian logistics
Trade offs in logistics management - - Improving service almost always costs money
- Determining what service level is really important to customers
, - Logistics management adds value to economy and firms, but requires a balance point
between customer satisfaction and logistics costs.
Why need demand planning? - - Spatiality and Temporality of demand
- Lead time and uncertainty
Understock Three causes - - Back orders
- Lost sales
- Lost Customers
Back orders - - Occur when a seller has only a portion of the products ordered by the
buyer
Lost sales - - Some customers will turn to alternative supple sources
Lost Customers - - Customer permanently switches to another supplier
Can companies better manage demand? - - Manage the
o Lumpy demand vs. regular demand
o Dependent vs. independent demand
Aggregate (Top-down) - - top down forecasting from corporate to stores
Disaggregate (bottom-up) - - Bottom- up forecasting from stores up to corporate
Qualitative forecasting method - Focus on Customers
- Grass Roots
- Market Research
Focus on Experts
- Expert Panels
- Executive Judgement
- Delphi
Focus on Products
What is logistics? - Logistics management (business logistics): The part of supply chain
management that plans, implements, and controls the efficient, effective forward and
reverses flow and storage of goods, services and related information between the point
of origin and the point of consumption in order to meet customers' requirements.
What is Logistics Management? - o Movement
o Storage
o Planning
- Demand management
- Inventory management
Information definition for logistics management - - Seven rights of logistics
o Right product to the
o Right customer
o At the right time
o In the right condition
o In the right quantity
o At the right place
o for the right cost
Types of logistics ? - - Military Logistics
- Event logistics
- Service logistics
- Humanitarian logistics
Trade offs in logistics management - - Improving service almost always costs money
- Determining what service level is really important to customers
, - Logistics management adds value to economy and firms, but requires a balance point
between customer satisfaction and logistics costs.
Why need demand planning? - - Spatiality and Temporality of demand
- Lead time and uncertainty
Understock Three causes - - Back orders
- Lost sales
- Lost Customers
Back orders - - Occur when a seller has only a portion of the products ordered by the
buyer
Lost sales - - Some customers will turn to alternative supple sources
Lost Customers - - Customer permanently switches to another supplier
Can companies better manage demand? - - Manage the
o Lumpy demand vs. regular demand
o Dependent vs. independent demand
Aggregate (Top-down) - - top down forecasting from corporate to stores
Disaggregate (bottom-up) - - Bottom- up forecasting from stores up to corporate
Qualitative forecasting method - Focus on Customers
- Grass Roots
- Market Research
Focus on Experts
- Expert Panels
- Executive Judgement
- Delphi
Focus on Products
