BUSML 3380 Logistics Management Final Exam Study Guide February 1 2023 CH 1 1 What the definition of total cost pg 10 The cost of all the activities in moving and storing products 2 What is the definition of place utility pg 3 Place utility 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 Accumulating is bringing together similar stocks from different sources 4 What is the most costly activity of logistics pg 18 Transportation management 5 What is the definition of landed cost pg 13 The price of a product at the source plus transportation costs to its destination 6 What is the definition of postponement pg 12 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 Change to one logistics activity cause some costs to increase and others to decrease 8 What is the definition of physical distribution pg 9 Storage of finished product and movement to the customer CH 5 9 What point of view should companies adopt for supply chain management pg 78 Adopt an enterprise to enterprise point of view 10 How many processes are included in the Global Supply Chain Forum model pg 79 80 8 11 What the definition of leagility pg 81 Combine aspects of both lean and agile as a way to focus part of one s supply chain an 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 positive Long term mutually beneficial relationship between supply chain participants Designed to reward all participants when collaborative ventures are successful and provide incentive for all parties to work toward success 13 What is the definition of the bullwhip effect pg 81 dwiddifield Page 1 2 1 2023 BUSML 3380 Logistics Management Final Exam Study Guide February 1 2023 Characterized by variability in demand orders among supply chain members the end results of which is inventory lumps 14 What is the general idea behind third party logistics usage pg 85 One company say a manufacturer allows a specialist company to provide it with one or more logistics functions e g warehouse outbound transportation 15 What is the definition of supply chain pg 77 A combination of process functions activities relationships and pathways along which products services information and financial transactions move in and between enterprises from original producers to ultimate end user or consumer 16 When did the supply chain concept develop pg 77 Early to mid 1990s CH 6 17 What is the third step of the supplier selection and evaluation process pg 97 Identify and evaluate possible suppliers 18 What is the advantage of single sourcing pg 97 Consolidates purchase column with a single supplier with the hopes of enjoying lower costs per unit and increased cooperation and communication in the supply relationship 19 What is procurement s historical focus pg 94 To achieve the lowest possible cost from potential suppliers 20 What is the definition of procurement pg 94 Which refers to the raw materials component parts and suppliers bought from outside organizations to support a company s operations 21 What are the categories of products in Kraljic s Portfolio Matrix pg 98 99 Noncritical low importance low complexity Leverage high importance low complexity Strategic high importance high complexity Bottleneck low importance high complexity CH 7 22 What is the final phase of the order cycle pg 117 Order delivery 23 What are the dimensions of customer service pg 119 120 Time dependability communication convenience 24 What is the definition of customer profitability analysis pg 124 125 CPA refers to the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers Suggests that different customers segments consume differing amounts and types of resources dwiddifield Page 2 2 1 2023 BUSML 3380 Logistics Management Final Exam Study Guide February 1 2023 25 What is the definition of order management pg 113 Refers to management of the various activities associated with the order cycle refers to the time from when a customer places an order to when the order is received 26 What is the definition of time series forecasting pg 111 Future demand is solely dependent on past demand 27 What is the definition of judgmental forecasting pg 111 Involves using judgment or intuition and is preferred in situations where there is limited or no historical data CH 8 28 What is the definition of shrinkage pg 134 Inventory shrinkage refers to the fact that more items are recorded entering than leaving warehousing facilities Shrinkage is generally caused by damage loss or theft and although shrinkage costs can be reduced such efforts often generate other costs 29 What is the definition of the economic order quantity EOQ pg 138 Deals with calculating the proper order size with respect to two costs the cost of carrying the inventory and the costs of ordering the inventory Determines the point at which the sum of carrying costs of ordering costs is minimized or the point at which carrying costs equal ordering costs 30 What are the assumptions of the economic order quantity EOQ pg 138 1 A continuous constant and known rate of demand 2 A constant and known replenishment or lead time 3 A constant purchase price that is independent of the order quantity 4 All demand is satisfied no stockouts are allowed 5 No inventory in transit 6 Only one item in inventory or no interaction between inventory items 7 An infinite planning horizon 8 Unlimited capital availability 31 What is the definition of ABC analysis of inventory pg 142 Which can be applied in several different ways recognized s that inventories are not of 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 Refers to products that can fill the same need or want as another product 33 What is the definition of inventory pg 131 Refers to stocks of goods and materials that are maintained for many purposes the most common being to satisfy normal demand patterns CH 9 dwiddifield Page 3 2 1 2023 BUSML 3380 Logistics Management Final Exam Study Guide February 1