Logistics and Transportation Costs in Business

Play an AI-generated podcast conversation about this lesson

What does the supply chain refer to?

The movement of materials only

The movement of information within a single organization

The sequence of organizations involved in the creation and delivery of goods and services (correct)

The movement of cash through organizations

How does cash typically move through the supply chain?

It remains stagnant

Backwards (correct)

In both directions

Forwards

Which component of the supply chain ends with the internal operations of a firm?

Demand component

Both demand and supply component equally

Neither demand nor supply component

Supply component (correct)

In a supply chain, what does the demand component end with?

Final output of the business Signup and view all the answers

How does the length of the supply component vary based on an organization's location in the supply chain?

It gets shorter as an organization is closer to the beginning of the supply chain Signup and view all the answers

In which direction does information typically move through the supply chain?

In both directions Signup and view all the answers

What represents the single largest cost in logistics for businesses?

Transportation costs Signup and view all the answers

What is another term used for return goods handling?

Reverse logistics Signup and view all the answers

What type of utility does marketing provide by offering delayed payments and credit?

Possession utility Signup and view all the answers

Why should businesses pay close attention to reverse goods handling?

To minimize transportation costs Signup and view all the answers

Which of the following is NOT one of the seven rights in logistics?

The right promotion Signup and view all the answers

What does the logistics activity of salvage and scrap disposal involve?

Transporting waste materials to dumping areas Signup and view all the answers

What type of utility is created by delivering the product in the right quantity to avoid stockouts?

Quantity utility Signup and view all the answers

What does providing replacement parts to customers fall under in logistics?

Parts and services support Signup and view all the answers

Which utility is associated with making the product available for purchase or consumption at the right time?

Time utility Signup and view all the answers

Why do businesses need special types of vehicles for transporting finished products?

To handle the products more efficiently Signup and view all the answers

In logistics, what is meant by the 'seven rights'?

Rights related to product delivery and quality in logistics Signup and view all the answers

What does inbound logistics refer to for manufacturing organizations?

Activities associated with bringing materials to the plant for manufacturing Signup and view all the answers

Which department provides form utility to a product?

Manufacturing (production) department Signup and view all the answers

What is the purpose of time utility in a product?

To make the product available to the customer when needed Signup and view all the answers

Which activity is NOT part of outbound logistics?

Placing the order with the supplier Signup and view all the answers

What is possession utility in terms of a product?

Creating value by transferring ownership of a product Signup and view all the answers

Which type of utility involves making a product available for purchase or consumption at the right place?

Place utility Signup and view all the answers

What does the text emphasize as the relationship between business proximity to the end of the supply chain and supply chain components?

The longer the supply component and the shorter the demand component. Signup and view all the answers

What term is often used interchangeably with 'supply chain' in the text?

Value chain Signup and view all the answers

What was a common practice for businesses in the past mentioned in the text regarding supply chain management?

Focus only on internal operations and immediate suppliers Signup and view all the answers

Which of the following is NOT listed as a problem that resulted from businesses not paying attention to supply chain management?

Increased transportation costs Signup and view all the answers

What do organizations aim to achieve through the application of lean production systems and Total Quality Management (TQM)?

Improving quality and quantity while reducing costs Signup and view all the answers

What is the objective of lean production as described in the text?

Producing a large quantity of high-quality, somewhat customized products using minimal resources Signup and view all the answers