CHAPTER 2

Question 1

TLC

Answer 1

TOTAL LOGISTICS CONCEPTS

Question 2

TOTAL LOGISTICS CONCEPTS

Answer 2

treat the many different elements of distribution and logistics as one integrated system

Question 3

Trade off

Answer 3

losing one quality to gain another quality.

Question 4

FOUR DIFFERENT LEVELS OF TRADE-OFF:

Answer 4

1. Within distribution components
2. Between distribution components
3. Between company functions
4. Between the company and external organization

Question 5

Within distribution components

Answer 5

those trade-offs that occur within single functions.

Question 6

Between distribution components

Answer 6

those trade-offs between the different elements in distribution.

Question 7

Between company functions

Answer 7

there are a number of areas of interface between company functions where trade-offs can be made.

Or

Trade-offs between different departments

Question 8

Between the company and external organization

Answer 8

trade-off may be beneficial for two companies that are associated with each other.

Question 9

General Classification of Planning:

Answer 9

1. STRATEGIC
2. TACTICAL
3. OPERATIONAL

Question 10

Strategic

Answer 10

set of procedures for making decisions about the organization’s long-term goals and strategies.

Question 11

WHAT IS THE TIME HORIZON OF STRATEGIC PLANNING?

Answer 11

1-5 YEARS (MEDIUM TO LONG TERM)

Question 12

TACTICAL

Answer 12

TRANSLATING BROAD STRATEGIC GOALS INTO SPECIFIC GOALS

Question 13

WHAT IS THE TIME HORIZON OF TACTICAL PLANNING?

Answer 13

6 MONTHS TO 1 YEAR (SHORT TO MEDIUM-TERM)

Question 14

OPERATIONAL

Answer 14

process of identifying the specific procedures and processes required at lower levels of the organization.

Question 15

WHAT IS THE TIME HORIZON OF OPERATIONAL PLANNING?

Answer 15

DAY TO DAY (SHORT TERM)

Question 16

Planning

Answer 16

• about ensuring that the operation
  is set up to run properly

– it is ‘doing the right
thing’ or preparing for and planning the operation ‘effectively.

Question 17

Control

Answer 17

• about managing the operation in the
  right way

– it is ‘doing the thing right’ or making
sure that the operation is being run ‘efficiently’.

Question 18

Integrated logistics

Answer 18

system-wide management of entire logistics chain as a single entity

Question 19

Direct product profitability (DPP)

Answer 19

technique of
allocating all of the appropriate costs and
allowances to a given product

Question 20

Materials requirements planning (MRP) and distribution
requirements planning (DRP)

Answer 20

systems that aim to make the necessary materials or
inventory available when needed.

Question 21

Material requirements planning (MRP)

Answer 21

a system for
calculating the materials and components needed to
manufacture a product.

Question 22

MRP three primary steps

Answer 22

(1) taking inventory of the materials and
components on hand,
(2) (2) identifying which additional ones are needed,
and then
(3) scheduling their production or purchase.

Question 23

Manufacturing resource planning (MRP II)

Answer 23

is an
integrated information system used by businesses.
It evolved from earlier materials requirement planning
(MRP) systems by including the integration of additional
data, such as employee and financial needs.

Question 24

Distribution requirements planning

Answer 24

process of
determining the right amount of manufactured
goods to be shipped to each distribution center or
warehouse in order to satisfy customer demand.

Question 25

Just-in-time (JIT)

Answer 25

originated as a new approach to manufacturing and has been successfully applied in many industries such as the automotive industry.

Question 26

Just-in-time (JIT)

Answer 26

provide a production system that eliminates all activities that neither add value to the final product nor allow for the continuous flow of material – in simple terms, that eliminates the costly and wasteful elements within a production process.

Question 27

The objectives of JIT are vitally linked to distribution and logistics, including as they do:

Answer 27

- the production of goods the customer wants; - the production of gods when the customer wants them; - the production of perfect-quality goods; - eliminating waste (labor, inventory, movement, space, etc.)

Question 28

Supply chain management (SCM)

Answer 28

monitoring and optimization of the production and distribution of a company’s products and services.

Question 29

5 Phases of Supply Chain Management (SCM)

Answer 29

1. Planning 2. Sourcing 3. Manufacturing 4. Delivery 5. Returns

Question 30

5 Phases of Supply Chain Management (SCM)

Answer 30

1. Planning 2. Sourcing 3. Manufacturing 4. Delivery 5. Returns