Logistics Management Final Exam
Definition of Logistics - -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 - --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. - -o Utility: perceived value
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? - -through movement, storage, and
processing
-CSCMP definition of supply chain management - -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 - -View the sum of logistics operations as a system and
seek to minimize the total cost of the system rather than the individual
functions
-Logistics cost tradeoffs - -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 - -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
-Deliverable of Order Fulfillment - -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 - -• 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 - -back orders, lost sales, lost customers
-Definition of a Logistics System - -network of organizations/activities,
engaged in management of movement of storage of products, service, and
information
-Definition of Exclusive Distribution - -Intentionally reaching a limited number
of customers to maintain prestige
-Definition of Intensive Distribution - -Getting products in the hands of all
customers across a broad market geography
-Definition of Selective Distribution - -Occupying a strategic position among a
small number of customers in a select region
-Four broad supply chain strategies - -Planning Based, Lean, Agile, Leagile
Definition of Logistics - -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 - --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. - -o Utility: perceived value
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? - -through movement, storage, and
processing
-CSCMP definition of supply chain management - -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 - -View the sum of logistics operations as a system and
seek to minimize the total cost of the system rather than the individual
functions
-Logistics cost tradeoffs - -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 - -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
-Deliverable of Order Fulfillment - -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 - -• 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 - -back orders, lost sales, lost customers
-Definition of a Logistics System - -network of organizations/activities,
engaged in management of movement of storage of products, service, and
information
-Definition of Exclusive Distribution - -Intentionally reaching a limited number
of customers to maintain prestige
-Definition of Intensive Distribution - -Getting products in the hands of all
customers across a broad market geography
-Definition of Selective Distribution - -Occupying a strategic position among a
small number of customers in a select region
-Four broad supply chain strategies - -Planning Based, Lean, Agile, Leagile
