Chapter 7 Assessment Blueprint Flashcards by Kellyn Smith

Define the term
business function responsible for transporting and delivering products to the right place at the right time and the right quantity throughout the supply chain (movement & storage of product inventories throughout the chain)

Logistics

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T/F- Logistics connects the organization to both its customers (downstream) and its suppliers (upstream)

True

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T/F- Logistics requires large investments in infrastructure (IT, vehicles, material handling equipment) – this is why many choose to outsource logistics activities to a 3PL

True

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When logistics connects to its customers which way is the stream going?

Downstream

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When logistics connects to its suppliers which way is the stream going?

Upstream

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What are 4 functions logistics include?

Organizing & managing the distribution network
Determining/optimizing locations of warehouses, distributions centers, and manufacturing plants
Coordinating modes of transportation
Design & management of operations throughout the network for efficient storage & QUICK movement of goods

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Which evolution of logistics is focused on the movement and storage of goods throughout the supply chain

Business Logistics

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Which evolution of logistics is focused on supporting military needs?

Military Logistics

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Which evolution of logistics involves organizing and deploying resources in preparation for an event

Event Logistics

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Th impact of logistics on the organization will effect which section:
logistics interfaces closely with ops through planning the amount of inventory that must
be received at various points throughout the supply chain AND the timing of those receipts (deliveries)

Operations

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Impact of logistics on the organization will effect which section: logistics works with *** to understand customer requirements, as well as storage and delivery needs. Must ensure that product is available when needed!

Marketing

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Impact of logistics on the organization will effect which section: significant impact on moving/handling product, protects items from being damaged

Packaging

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Impact of logistics on the organization will effect which section: logistics is responsible for large capital expenses (transportation, warehousing, inventory); performance can be assessed directly with ROA (return on assets) and ROI (return on investment) no calculations expected

Finance

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T/F- Logistics supports Supply Chain Management by being responsible for one of the flows in SCM which is moving of goods or inventory

True

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Logistics provides SCM with what three utilities?

Place
Quantity
Time

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The process of moving products UPSTREAM from customer back towards manufactures and
suppliers; it’s non-value added and challenging; often an order qualifier

Reverse Logistics

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What are the 7 logistics task?

Transportation
Storage
Material Handling
Packaging
Inventory Control
Order Fulfillment
Facility Location

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What logistics tasks moves products throughout the supply chain, have a high cost, and must decide mode of transportation consider required speed, security, and product characteristics/ requirements

Transportation

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What logistics tasks am I describing?
- where goods will be stored
- # of warehouses and distribution centers
- amount of inventory to store at each cente

Storage

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What logistics tasks am I describing?
-loading and unloading goods from vehicles
- placement and order picking
- moving goods throughout a facility
- decide degree of automation vs. manual labor
**automated storage and retrieval systems (ASRS)

Material Handling

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What logistics tasks am I describing?
- protect products during transport and storage
- compatible with material handling equipment
- compatible with mode of transportation

Packaging

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What logistics tasks am I describing?
- manage quantities of inventory
- arrange for timely replenishments
- maintain accurate counts of inventory
- electronic tracking and “cycle counting”

Inventory Control

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What logistics tasks am I describing?
- pick and pack order
- arrange for transportation
- ship order
- assure lead time is not exceeded

Order Fulfillment

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What are the 6 modes of transportation?

Truck
Water
Air
Rail
Pipeline
Multimode

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Define the term- combined use of multiple modes of transportation for product delivery

Multimode

Mode of Transportation by rail has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a railway?

Fixed Cost- High (equipment, terminals, tracks) Variable Cost- Low (can transport large tonnage)

Mode of Transportation by truck has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a truck?

Fixed Cost- Low( highways publicly supported) Variable Cost- Medium ( fuel, maintenance, labor)

Mode of Transportation by water has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of water?

Fixed Cost- Medium ( ships and equipment) Variable Cost- Low ( can transport large tonnage)

Mode of Transportation by pipeline has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a pipeline?

Fixed Cost- High ( right-of-way, construction) Variable Cost- Low ( no labor cost)

Mode of Transportation by air has a fixed cost and a variable cost (low, medium, high) what is the fixed and variable cost of a air?

Fixed Cost- High ( aircraft, handling, cargo) Variable Cost- High ( fuel, labor, maintenance)

Multimode mode of transportation can also be called

Intermodal

When several modes are often combined for optimal cost and customer service by leveraging the advantages of each this mode of transportation is called

Multimode

Who are the top 5 container ports in the world?

Shanghai, China Singapore Ningbo-Zhoushan, China Shenzhen, China Guangzhou Harbor, China

What is the top US port?

Los Angeles

What is the top US port in the east coast?

New York- New Jersey

Top 5 in the US

LA Long Beach New York- New Jersey Savannah

What is Savannah's port ranked in the US

4th

How are the North American Railroad Systems separated by class?

Revenues

Class 1 KNOW

revenue> $900 million (adjusted annually) is regulated by the Surface Transportation Board (STB) 7 freight rail companies currently established - BNSF, Canadian National, Canadian Pacific, CSX, Kansas City Southern, Norfolk Southern, Union Pacific Account for 68% of freight rail mileage, 88% of employees, and 94% of revenue

Class 2 (Regional) KNOW

Revenue> (greater than) 40.4 million and < (less than) 900 million

Class 3 (Local) KNOW

Revenue< (less than) 40.4 million

TOFC stands for?

Trailer on Railroad Flatcar or "piggyback"

COFC stands for?

Container on railroad flatcar

the practice of carrying semi-trailers on railroad flatcars is known as

TOFC

a container that is transported on a rail flatcar is known as?

COFC

What is the difference between international shipping containers and domestic shipping containers?

Domestic shipping containers are generally larger, while international containers are standard TEU's

Which shipping container has standard lengths of 20 feet (1-TEU – twenty foot equivalent unit) and 40 feet (2- TEU’s or sometimes referred to as FEU – forty-foot equivalent unit)

International Shipping Containers

What are the dimensions of a TEU?

20' long x 8' wide x 8' high

Which shipping container can be described as generally larger than other shipping containers and the standard lengths of the container is 48 feet and 53 feet

Domestic Shipping Containers

What are the measurements of domestic shipping containers?

53' long x 8'6" wide x 9' 6"

What does LTL stand for?

Less than truckload

T/F- Freight doesn't require use of an entire trailer on an LTL

True

What does TL stand for?

Truckload or Full Truckload

T/F- Truckload freight shipments need the entire space (cube out) or weight limit ( weight out) of a truck's trailer

True

T/F- Warehouses provide a centralized location that stores and organizes inventories before distribution

True

Define the term- provides a centralized location that stores and organizes inventories before distribution

Warehouses

Warehouses are often referred to as

Distribution Centers

Warehouses enable efficient movement of goods on both the inbound and outbound sides

Just Know

T/F- JIT and lean manufacturing warehouses can be proximal to the manufacturing facility for frequent deliveries and Warehouses can be utilized to create product assortments

True

What are some non traditional warehouse tasks?

-repairing items - adding labels and price tags -sequencing items in preparation for the retail floor - put garments on hangers

A popular form of warehouse sorting that attempts to move products “cross the dock” from inbound to outbound, without ever being stored

Cross-Docking

Based off of the characters what term am I describing? - arriving larger shipments are broken into smaller shipments for local delivery - requires precise timing and coordination - information technology tracks inventories - especially used in retail industry

Cross-Docking

FIGURE 7.7 Explain Cross-Docking

Manufacturer A,B and C flow toward the warehouse The warehouse then flows toward the retailers A,B,and C

Cross Docking Terminal can be described as

Inbound (receiving- sorting- shipping) to Outbound

What are you considering when you look at these factors? - proximity to customers or manufacturing facilities – availability of infrastructure and access to transportation – cost and availability of labor – overall business climate including tax structure

Facility Location

What is the method to determine warehouse location?

Factor Rating

A popular quantitative technique to help determine warehouse and distribution center location - evaluates multiple location alternatives based on several factors

Factor Rating

T/F- Multimode or Intermodals is commonly used for 4PL providers

False- Common for companies to use third-party- logistics (3PL) providers

Which shipping term indicates at what point the respective obligations, costs, risk (i.e. – contractual terms) involved in the delivery of goods SHIFT from the seller TO the buyer

FOB- Free On Board

Which freight term indicating the seller is responsible for the cost, marine insurance, and the freight charges on an OCEAN shipment of goods

CIF- Cost, Insurance, Freight

An organization that helps match carriers to freight, adding value by helping the shipper and carrier obtain better rates and more fully utilize their capacity and equipment is known as?

Broker

The process of a transportation vehicle returning from the original destination point to the point of origin is known as

Backhauling

The return of an empty transportation container to its point of origin can be known as

Deadhead

A way to measure the transportation of freight; Heavily used in rail and ship transportation modes; weight being transported (in tons) x distance traveled (in miles) is known as

Ton-mile

Motor carrier operation that reflects transporting between cities or states (long distance) is known as

Over-the-road

Which logistics provider is a commercial firm that provides one or more logistics functions on behalf of its customers on an outsourced basis for a fee

Third-Party Logistics (3PL)

How do you become a 3PL?

the logistics service provider (LSP) must predominantly operate a business that moves, stores or manages products or materials on behalf of its customer, in some manner, without taking ownership of such products or materials

The use of two or more different carrier modes in the movement of a shipment is known as?

Intermodal Transport

Combined use of multiple modes of transportation for product delivery is known as

Multimode

T/F- The 4PL organization is often a separate entity formed by a joint venture or other long-term contract between a client and one or more partners

True

T/F- The 4PL organization is an interface between client and multiple logistics service providers

True

T/F- Ideally, all aspects of the client’s supply chain are managed by the 4PL organization

True

T/F- It is impossible for a major 3PL organization to form a 4PL organization within its existing structure

False- It is possible for a major 3PL organization to form a 4PL organization within its existing structure

What logistics provider manages all aspects of a supply chain including resources, technology, and infrastructure

4PL's ( Lead Logistics Providers)

T/F- 4PL’s manage 3PL’s on behalf of their clients and serve as a single point of contact

True

T/F- 4PL's are responsible for achieving effective logistics integration where both inter- and intrafirm activities are integrated to enhance customer satisfaction and provide a competitive advantage

False- 3PL's are

What are a few examples of how 3PL's provider traditional services?

Transportation Management Warehousing International Logistics Management Brokerage Distribution and Fulfillment Consolidation

The larger the amount shipped at one time the lower the per unit cost

Economies of Scale - avoid less than truck load shipments (LTL)

The longer the distance moved at one time, the lower the per unit cost

Economies of Distance