Kapital 1

Question 1

Total logistics cost in the USA

Answer 1

8.3% of the GDP in 2014 (similar in Europe as well)

Question 2

What are the areas of logistics and which one attributes the most cost?

Answer 2

The main areas are Transport, Warehousing, Inventory, and Administration. Most of the time, Transport and Inventory make up the greatest percentages of costs. It depends on the Sector.

Question 3

What are the 4 narrower types of Logistics?

Answer 3

Transport, Handling (loading and unloading, storage and retrieving). These can be characterized as Movement, Buffering, and Arrangement Change

Question 4

Who provides objects to the Logistic System?

Answer 4

Sources, suppliers or supply outlets. Z.B. Raw material warehouses, production facilities, factories, buffer warehouses, importing warehouses, logistics centers

Question 5

Who creates demand in the Logistic System?

Answer 5

Sinks or delivery outlets. Z.B. Retailers, markets, branches, consumers, waste incineration plants. Some sources can also be receivers. Retail markets and consumers are sources of waste which have to be disposed.

Question 6

What is a transition, storage or order picking system?

Answer 6

It ensures the flow of goods between or to different areas/stages or within facilities. (Special logistic system)

Question 7

What is a transport system?

Answer 7

Serves only for movement between facilites. (Special logistic system)

Question 8

What is a production system?

Answer 8

It adds value through production and transformation of goods and commodities. (Special logistic system)

Question 9

Logistics definition

Answer 9

Process of planning, implementing, and controlling the efficient, cost-effective, forward, and backward material and information flow from supply to final destination as well as the associated process of storing according to the customers’ requirements.

Question 10

Task of logistics

Answer 10

Supply customers with the right product in the right place at the right time while optimizing a given performance criterion and considering given requirements and limitations.

Question 11

7 R’s of logistics

Answer 11

Right: product, time, place, quantity, quality, costs, information

Question 12

Difference between tactical and operational

Answer 12

Takt - medium term, Ops - short term

Question 13

What does a supply chain include?

Answer 13

Processes and actions of objects procurement, production, processing, storage, and distribution.

Question 14

What does a supply chain describe?

Answer 14

Flows, conversions and usage of material, goods, and resources. The interactions between these are also described. It is the goal of the supply chain to control and manage order and information flows to meet all requirements.

Question 15

How are SC managed?

Answer 15

Designing value-added networks, aligning organizational units to the material flow, integrating the information base, and collaborating in planning and management processes.

Question 16

What are some strategic SC configurations?

Answer 16

Number and location of facilities, investment in production and storage facilities, facility layout, distribution strategies, and external services.

Question 17

What are some tactical SC examples?

Answer 17

Procurement and production decisions, choice of transport and delivery strategies, stock planning, staffing and working hours. These decisions concern the effective allocation of production and distribution of resources.

Question 18

What are operational SC examples?

Answer 18

Scheduling, job allocation, disposition, job processing, vehicle routing, truck loading. These decisions concern day-to-day operations.

Question 19

What are the objectives of enterprise logistics?

Answer 19

Service completion, cost minimization, equity reduction, quality improvement, service level, throughput time/lead time. Bonus ones are flexibility and readiness to provide information about orders.

Question 20

How are costs minimized?

Answer 20

Avoiding and reducing inventories and transports, optimally using the available resources, enhancing the performance of facilities + vehicles + equipment, efficient deployment of personnel and information flow.

Question 21

How is equity reduced?

Answer 21

Reducing the investments (inventories, own equipment, vehicles, resources), using public warehouses and transportation services. The trade-off is usually a higher operating cost.

Question 22

How is quality improved?

Answer 22

Product quality and performance quality (service level and throughput time)

Question 23

How is service level improved?

Answer 23

Improving readiness for delivery, delivery quality, and deadlines.

Question 24

What is the relationship between cost and service level?

Answer 24

Usually positive. However, the goal of logistics is to maintain a certain service level while reducing costs.

Question 25

What is the relationship between sales and service level?

Answer 25

The service level significantly affects the sales volume.

Question 26

What does inventory management involve in the context of this class?

Answer 26

To determine inventories so costs are minimized while taking into account the service requirements of the customers. This is not an independent task, because it relies on the planning of production and transport processes.

Question 27

What are the different types of inventories?

Answer 27

Batch-sized related inventory, safety stocks, seasonal inventory, work in progress

Question 28

Why would a companie want to have inventory, if it comes with a cost?

Answer 28

There are several reasons: to improve the service level, reduce total costs, absorb fluctuations in demand or suply bottlenecks, all-year delivery readiness, using price fluctuations, covering bad planning.

Question 29

What do inventories rely on heavily?

Answer 29

Demand forecasts. What is the customer going to want in the next month? Do I anticipate making selling a certain type of product more than another? What if a bottleneck of a certain product comes up?

Question 30

What are the three supply chain strategies in this class?

Answer 30

Risk pooling effect, bullwhip effect, JIT management

Question 31

Risk Pooling Effect

Answer 31

It is a centralized system. Typically, when you are practicing RP, you have a distribution center that delivers to retailers. The math justifies this, because a result of RP is a smaller deviation of demand from the retailers, which leads to more confident demand forecasts. However, there is typically a longer lead time to the customers, because every product must go through the distribution center.

Question 32

Bullwhip Effect

Answer 32

Describes what can happen to a supply chain if there is a sharp increase in demand from the customers. Each phase of the supply chain will experience a greater demand, all the way to the supplier. The four main causes are price fluctuation, order batching, shortage gaming, and inaccurate forecasts. These can be countered with: everyday low prices, frequent ordering, forecast on sales history, and information sharing.

Question 33

JIT

Answer 33

Just in Time Management was developed by Toyota. This is a management process of providing the goods or raw materials as close to the time they are actually needed. This is done to minimize inventory costs. It must be managed very closely, otherwise it can get out of hand.

Question 34

Who is a good candidate for JIT?

Answer 34

Businesses that have a predictable demand and high volume, no considerable setup costs and times, spare capacity and high reliability, short delivery deadlines

Question 35

What are the distribution strategies?

Answer 35

Direct shipment, warehousing, cross-docking, and transshipment

Question 36

Direct Shipment

Answer 36

Goods are transported directly from the manufacturer/ supplier to the customer. This reduces the Bullwhip effect, however it requires more delivery stops to customers. It is used if delivery times are critical or full load shipments are required by customers.

Question 37

Warehousing

Answer 37

Goods are purchased from a supplier and temporarily stored in warehouses. The Bullwhip effect can surface with this practice, due to the complexity added to the supply chain. There are different types of warehouses.

Question 38

Cross Docking

Answer 38

There is basically a warehouse that receives multipe items from different sources. A palet for a store is made with different items and then shipped to the store.

Question 39

What is the difference in transportation costs given more or less facilities?

Answer 39

Less facilities have shorter transportation distances in the whole system and a high shipping volume from plants to warehouses. More facilities offer shorter delivery time to the customer.