BUSML 3380 Logistics Management Final Exam Study Guide The following topics will be reviewed on final exam CH 1 January 26 2023 1 What the definition of total cost pg 10 2 What is the definition of place utility pg 3 a all relevant activities in moving and storing products a refers to having products available where they are needed by customers products are moved from points of lesser value to points of greater value 3 What is the definition of accumulating pg 15 4 What is the most costly activity of logistics pg 18 a bringing together similar stocks from different sources a Transportation can account for up to 50 percent of a firm s total logistics costs and thus represents the most costly logistics activity in many organizations 5 What is the definition of landed cost pg 13 6 What is the definition of postponement pg 12 a price of a product at the source plus transportation costs to its destination a the delay of value added activities such as assembly production and packaging until the latest possible time 7 What is the definition of a cost trade off pg 10 a changes to on logistics activity cause some costs to increase and others to decrease 8 What is the definition of physical distribution pg 9 a storage of finished product and movement to the customer CH 5 view 9 What point of view should companies adopt for supply chain management pg 78 a successful SCM requires companies to adopt an enterprise to enterprise point of 10 How many processes are included in the Global Supply Chain Forum model 79 a The GSCF model comprises eight processes b customer relationship management supplier relationship management customer service management demand management order fulfillment manufacturing flow management product development and commercialization and returns management 11 What the definition of leagility pg 81 a hybrid approach used in practice sometimes referred to as legality combines aspects of both lean and agile as a way to focus part of one s supply chain on a timely response to fluctuating customer orders and or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output 12 What is the definition of a partnership pg 89 a supply chains are integrated by having various parties enter into and carry out long term mutually beneficial agreements to include partnerships 13 What is the definition of the bullwhip effect pg 81 a characterized by variability in demand orders among supply chains members the end result of which is inventory lumps 14 What is the general idea behind third party logistics usage pg 85 a there is no commonly accepted definition of third party logisitics suggesting that any logistics activities not performed in house is representative of theird party logistics 15 What is the definition of supply chain pg 77 a can be liberally viewed as a combination of processes functions activities relationships and pathways along with products services information and financial dwiddifield Page 1 1 26 2023 BUSML 3380 Logistics Management January 26 2023 transactions move in and between enterprises from original producer to ultimate end user or consumer Final Exam Study Guide 16 When did the supply chain concept develop pg 77 a since the early to mid 1990s academics practitioners are industry associations have suggested a number of definitions for both a supply chain and SCM 17 What is the third step of the supplier selection and evaluation process pg 97 a Identify and Evaluate Potential Suppliers 18 What is the advantage of single sourcing pg 97 a consolidates purchase volume with a single supplier with the hopes of enoying lower b for some smaller buyers single sourcing might acutally reduced their alternative costs per unit and increased cooperation and communication in the supply relationship and ultimately raise the price they pay 19 What is procurement s historical focus pg 94 20 What is the definition of procurement pg 94 a traditionally viewed as transactional in nature a the raw materials component parts and supplies bought from outside organization to support a company s operations 21 What are the categories of products in Kraljic s Portfolio Matrix pg 98 99 a noncritical leverage strategic bottleneck 22 What is the final phase of the order cycle pg 117 a the final phase of the order cycle is order delivery 23 What are the dimensions of customer service pg 119 120 a Time Dependability Communication Convenience 24 What is the definition of customer profitability analysis pg 124 125 a the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers 25 What is the definition of order management pg 113 a management of the various activities associated with the order cycle 26 What is the definition of time series forecasting pg 111 a future demand is solely dependent on past demand 27 What is the definition of judgmental forecasting pg 1113 a using judgment or intuition and is preferred in situations where there is limited or no historical data such as with a new product introduction CH 6 CH 7 CH 8 28 What is the definition of shrinkage pg 134 29 What is the definition of the economic order quantity EOQ pg 138 a More items are recorded entering than leaving warehousing facilities a The most economic order size b Calculating the property order size with respect to the costs of carrying the inventory and costs of ordering the inventory 30 What are the assumptions of the economic order quantity EOQ pg 138 a continuous constant and known rate of demand b A constant and known replenishment or lead time c A constant purchase price that is independent of the order quantity d All demand is satisfied no stockouts allowed e No inventory in transit f Only one item in inventory or no interaction between inventory items g An infinite planning horizon dwiddifield Page 2 1 26 2023 BUSML 3380 Logistics Management Final Exam Study Guide January 26 2023 31 What is the definition of ABC analysis of inventory pg 142 h Unlimited capital availability a inventories are not equal value to a firm and that as a result all inventories should not be managed in the same way 32 What is the definition of a substitute product pg 144 33 What is the definition of inventory pg 131 a products that can fill the same need or want as another product a stocks of goods and materials that are maintained for many purposes the most common being to satisfy normal demand patterns