IDIS 343 Exam 1 Questions and Answers Solved Correctly
The Logistics/SC Mission - Answers Getting the right goods or services to the right place, at the right
time, and in the desired condition at the lowest cost and highest ROI
Primary Activities/Processes - Answers - Setting customer service goals
- Transportation
- Inventory management
- Location
Secondary, or supporting Activities/Processes - Answers - Warehousing
- Materials handling
- Acquisition (purchasing)
- Protective packaging
- Product scheduling
- Order processing
Inventory Strategy - Answers - Forecasting
- Storage fundamentals
- Inventory decisions
- Purchasing and supply scheduling decisions
- Storage decisions
Transport strategy - Answers - Transport fundamentals
- Transport decisions
Location Strategy - Answers - Location decisions
- The network planning process
Customer Service Goals - Answers - The product
- Logistics Service
- Information systems
The two largest cost categories in logistics systems - Answers Transportation and inventory
, The most frequent trade-off in logistics is between: - Answers Transportation and inventory cost
ROLA - Answers Return on logistics assets
(Revenue - Costs)/Logistics Assets
Significance of Logistics: Costs are High - Answers - About 10.5% of GDP domestically
- About 12% of GDP internationally
- A range of 4 to 30% of sales for individual firms, avg about 10%
- As high as 70-80% of sales if purchasing and production are included
Significance of Logistics: Customers are more demanding of the supply chain - Answers - Desire for quick
response
- Desire for mass customization
Significance of Logistics: An integral part of company strategy - Answers - Generate revenue
- Improve profit
Significance of Logistics: Logistical lines are lengthening - Answers Local vs Long distance supply
Significance of Logistics: Logistics is a key to trade and an increased standard of living - Answers Law of
comparative economic advantage applies
Significance of Logistics: Logistics adds value - Answers Time and place utilities
Relationship of Logistics to production: Coordinates through scheduling and strategy - Answers Make to
order
Make to stock
Relationship of Logistics to production: An integral part of the supply chain - Answers - Affects total
response time for customers
- Shares activities such as inventory planning
Relationship of Logistics to production: Costs are in a tradeoff - Answers - Production lot quantities affect
inventory levels and transportation efficiency
- Production response affects transportation costs and customer service
- Production and warehouse location are interrelated
The Logistics/SC Mission - Answers Getting the right goods or services to the right place, at the right
time, and in the desired condition at the lowest cost and highest ROI
Primary Activities/Processes - Answers - Setting customer service goals
- Transportation
- Inventory management
- Location
Secondary, or supporting Activities/Processes - Answers - Warehousing
- Materials handling
- Acquisition (purchasing)
- Protective packaging
- Product scheduling
- Order processing
Inventory Strategy - Answers - Forecasting
- Storage fundamentals
- Inventory decisions
- Purchasing and supply scheduling decisions
- Storage decisions
Transport strategy - Answers - Transport fundamentals
- Transport decisions
Location Strategy - Answers - Location decisions
- The network planning process
Customer Service Goals - Answers - The product
- Logistics Service
- Information systems
The two largest cost categories in logistics systems - Answers Transportation and inventory
, The most frequent trade-off in logistics is between: - Answers Transportation and inventory cost
ROLA - Answers Return on logistics assets
(Revenue - Costs)/Logistics Assets
Significance of Logistics: Costs are High - Answers - About 10.5% of GDP domestically
- About 12% of GDP internationally
- A range of 4 to 30% of sales for individual firms, avg about 10%
- As high as 70-80% of sales if purchasing and production are included
Significance of Logistics: Customers are more demanding of the supply chain - Answers - Desire for quick
response
- Desire for mass customization
Significance of Logistics: An integral part of company strategy - Answers - Generate revenue
- Improve profit
Significance of Logistics: Logistical lines are lengthening - Answers Local vs Long distance supply
Significance of Logistics: Logistics is a key to trade and an increased standard of living - Answers Law of
comparative economic advantage applies
Significance of Logistics: Logistics adds value - Answers Time and place utilities
Relationship of Logistics to production: Coordinates through scheduling and strategy - Answers Make to
order
Make to stock
Relationship of Logistics to production: An integral part of the supply chain - Answers - Affects total
response time for customers
- Shares activities such as inventory planning
Relationship of Logistics to production: Costs are in a tradeoff - Answers - Production lot quantities affect
inventory levels and transportation efficiency
- Production response affects transportation costs and customer service
- Production and warehouse location are interrelated
