Basics of Logistics - Chapter 2
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Questions and Answers

What is Materials Management?

The process of management which coordinates, supervises and executes the tasks associated with the flow of materials to, through, and out of an organization in an integrated fashion.

Materials Management aims to minimize waste, maximize utilization and conserve resources.

True

Which of the following are objectives of materials management? (Select all that apply)

  • Ensuring the highest possible purchase cost
  • Stores control (correct)
  • Store accounting (correct)
  • Looking at new supply sources (correct)
  • Development of suppliers and vendors (correct)
  • Issuance and timely distribution (correct)
  • Economical procurement of materials (correct)
  • Accurate record keeping (correct)
  • Smooth coordination of the flow of materials (correct)

    • Explain the concept of Materials Planning?

    <p>Materials planning is a scientific technique that helps determine the requirements of raw materials, components, spares, etc., based on the production schedule.</p> Signup and view all the answers

    Material planning is done independently of the overall management planning and control system.

    <p>False</p> Signup and view all the answers

    What are the key aspects that Materials Planning is based on?

    <p>Materials planning relies heavily on information gathered from sales forecasts, production forecasts, and general business forecasts.</p> Signup and view all the answers

    How do forecasts help in Materials Management?

    <p>Forecasts are essential for satisfying locational needs and estimating future trends in prices, wages, and costs of services.</p> Signup and view all the answers

    What is the primary goal of procurement in Materials Management?

    <p>Procurement aims to acquire the right materials, at the right price, of the right quality and quantity, at the right time, and from a reliable source.</p> Signup and view all the answers

    Which of the following are objectives of Procurement? (Select all that apply)

    <p>Avoiding duplication of purchases</p> Signup and view all the answers

    What is materials handling?

    <p>Materials handling involves the raising, lowering, or moving of items within a materials management system.</p> Signup and view all the answers

    What are the key areas of responsibility in materials handling? (Select all that apply)

    <p>Hydraulic operations</p> Signup and view all the answers

    What is the purpose of a pallet?

    <p>Pallets are specially designed platforms built to specific dimensions to facilitate forklift operations.</p> Signup and view all the answers

    How do forklift trucks contribute to materials handling?

    <p>Forklift trucks move loads horizontally and vertically, often utilizing pallets, to transport materials efficiently.</p> Signup and view all the answers

    Cranes are ______ driven, self propelled units fitted with a boom mounted on a mobile chassis.

    <p>power</p> Signup and view all the answers

    Explain the role of conveyors in materials handling?

    <p>Conveyors provide a means for straightforward transportation, eliminating the need for manual rehandling of materials during the operation.</p> Signup and view all the answers

    How do elevators contribute to the efficient movement of materials?

    <p>Elevators are used to transport materials vertically using an endless chain or a belt that runs over pulleys or sprockets, which are fixed at different levels on a plane.</p> Signup and view all the answers

    What is the primary use of tractors in materials handling?

    <p>Tractors are used as a substitute for forklift trucks for long-distance movements, especially when forklift trucks become economically inefficient.</p> Signup and view all the answers

    What are Twolines and how are they used?

    <p>Twolines are systems that consist of in-floor or overhead mounted drag devices, used in combination with four-wheel trailers, to transport goods on a continuous power basis.</p> Signup and view all the answers

    How is containerization beneficial for material management?

    <p>Containerization unifies multiple shipments into individual container units, improving efficiency by reducing freight costs, labor costs, warehousing costs, and environmental impact.</p> Signup and view all the answers

    What factors are crucial in selecting a storage system in a warehouse? (Select all that apply)

    <p>Product perishability</p> Signup and view all the answers

    Why is it important to isolate products with a high risk of contamination from other product groups?

    <p>Products with a high risk of contamination, like hazardous chemicals, require isolation to prevent potential damage or contamination of other products.</p> Signup and view all the answers

    How does product configuration influence storage choices?

    <p>Uniform products can be easily stacked, while products with odd shapes and sizes need more space and often require specific storage solutions.</p> Signup and view all the answers

    Products with a shorter shelf life, like perishable goods, should be stored in a way that facilitates a first-in, first-out (FIFO) system.

    <p>True</p> Signup and view all the answers

    How does product variety impact storage needs?

    <p>Storing various products together often necessitates segregation to ensure easy identification for both storage and retrieval.</p> Signup and view all the answers

    Study Notes

    Basics of Logistics - Chapter 2

    • Materials Management is the process of coordinating, supervising, and executing tasks related to the flow of materials within an organization. This aims for maximum utilization, conservation, waste elimination, and avoiding delays.

    Objectives of Materials Management

    • Economical procurement of materials
    • Issuance and timely distribution of materials
    • Maintaining accurate store accounting
    • Effective record keeping for materials
    • Controlling and managing stores
    • Evaluating and developing new supply sources
    • Building strong relationships with suppliers/vendors
    • Ensuring a smooth flow of materials

    Materials Planning

    • Materials planning is a scientific method to predict raw material, ancillary parts, and components, considering the production schedule.
    • It's a management planning and control system, translating material planning and budgeting into monetary terms for effective execution and control.
    • This planning process begins with gathering information from annual sales forecasts, production forecasts, and general business forecasts.

    Forecasts

    • Forecasts allow for satisfying locational needs and estimate trends in pricing, wages, and costs. This is done in advance.

    Procurement of Materials

    • Procurement of materials ensures the right materials are available at the right price, quality, and quantity in a timely manner.
    • Procurement objectives include:
      • Maintaining a continuous supply of materials.
      • Preventing redundant purchases, wasting materials, obsolescence, and delays.
      • Establishing quality standards based on suitability.
      • Obtaining materials at the lowest possible cost while maintaining quality and service requirements.
      • Maintaining a competitive edge in the market.

    Material Handling and Storage Systems

    • Materials handling involves moving items, which brings into play a wide array of specialties.
    • Mechanical, electrical, hydraulic, and electronic devices are common methods employed.

    Types of Material Handling Equipment

    • Pallets: Specially designed platforms for forklift operations.
    • Forklift Trucks: Move loads horizontally and vertically, using pallets as a platform.
    • Cranes: Powered, self-propelled units with a boom for lifting and moving materials on a mobile chassis.
    • Conveyors: Enable straightforward transportation by eliminating rehandling.
    • Elevators: Use endless chains or belts to move materials vertically.
    • Tractors: Used as a substitute for forklifts for long-distance movements.
    • Twolines: In-floor or overhead mounted drag devices combined with four-wheel trailers for continuous material movement.

    Containerization

    • Containerization unifies shipments, moves them as individual units, and handles bulk commodities.
    • It has several benefits, including door-to-door shipping, lower freight costs, increased labor productivity, reduced documentation, reduced warehousing costs, improved environmental control, and better utilization of capital equipment.

    Material Storage Systems

    • Warehouse storage systems impact the total operational cost and efficiency.
    • Storage system selection depends on factors such as:
      • Nature of the product: Products with higher contamination risks must be isolated.
      • Configuration: Uniform products can be stacked, while irregularly sized products may need more storage space.
      • Perishability: Perishable products are arranged for processing based on arrival date.
      • Product variety: Products with different varieties should have clear identification for convenient storage and retrieval.

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    Basics of Logistics Chapter 2 PDF

    Description

    This quiz covers Chapter 2 of the Basics of Logistics focusing on Materials Management. It highlights processes related to the flow of materials, including procurement, distribution, and record keeping. Test your knowledge on effective materials planning and supply chain management within an organization.

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