Flashcards: Logistics and Supply Chain Management — 39 cards

What does logistics plan, implement, and control in supply chain management?

The efficient flow and storage of goods, services, and information from origin to consumption.

What is a supply chain?

A network of organizations linked upstream to suppliers and downstream to distributors to create value for the final consumer.

What is the main goal of logistics?

To provide the right product, quantity, condition, place, time, customer, and price.

What does materials management handle in logistics?

The input phase moving raw materials from suppliers to production.

Which activities are included in materials management?

Procurement and storage.

What does physical distribution management handle in logistics?

The output phase moving finished goods to the final customer.

Which activities are included in physical distribution management?

Warehousing and transport.

What are the five utilities of logistics?

Form, place, time, quantity, and possession utilities.

What is reverse logistics?

The process of returning products from consumer to origin to recapture value or dispose properly.

What are the four types of supply chains?

Concentrated, batch manufacture, retail and distribution, and service chains.

In which direction does product flow move in supply chains?

Forward from supplier to customer.

In which direction does finance flow move in supply chains?

Backward from customer to supplier.

How does information flow move in supply chains?

In both directions between supplier and customer.

How does added value change during manufacturing and distribution?

It climbs steeply during manufacturing and flattens during distribution.

What does value chain analysis examine?

Every activity needed to deliver maximum value at the lowest cost.

What are Porter's three generic strategies?

Cost leadership, differentiation, and focus.

Which author identified the three generic strategies of cost leadership, differentiation, and focus?

Porter.

Why might Purchasing want to buy huge quantities?

To obtain discounts.

Why might Finance oppose purchasing huge quantities?

Because they increase storage costs and money tied up in inventory.

What distinguishes make-to-stock from make-to-order production?

Make-to-stock produces before confirmed demand, make-to-order produces only when requested.

Which technologies are current logistics megatrends?

Artificial intelligence, blockchain, autonomous vehicles, delivery drones, and automated robot warehouses.

What does Porter's value chain model primarily focus on?

Profitability.

Which system does Porter's value chain model use?

A push system.

What flow direction does Porter's value chain model follow?

From raw materials to the customer.

What activities does Porter's value chain emphasize?

Inbound, operations, outbound, and marketing activities.

What is the focus of Hines's value chain model?

Consumer satisfaction.

Which system does Hines's value chain model use?

A pull system.

What flow direction does Hines's value chain model follow?

From the consumer to raw materials.

What activities does Hines's value chain emphasize?

Cross-functional marketing, engineering, and research and development.

What does total systems management mean?

Making trade-offs so the whole system benefits rather than only one department.

From what does form utility arise in logistics?

Manufacturing or assembly.

How is place utility created in logistics?

By moving goods where demand exists.

What mainly creates possession utility in logistics?

Marketing and promotion.

Which activities are included in reverse logistics?

Repair, reconditioning, upgrading, remanufacture, and recycling.

What market does cost leadership target according to Porter?

A broad market with low cost.

What market does differentiation target according to Porter?

A broad market with a unique product.

What market segment does focus target according to Porter?

A narrow market segment.

What does cooperative planning involve in production?

Companies collaborating closely with suppliers and customers to make products only when requested.

What is one use of blockchain in logistics?

Secure tracking.