Logistics Management in Supply Chain IE483

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Questions and Answers

What is the definition of logistics?

The planning, implementation, and control of the movement and storage of materials, services, and information flow (correct)

The management of return and inventory control

The planning, implementation, and control of the movement and storage of goods only

The management of transportation and packaging activities

Which organization was formerly known as the Council of Logistics Management?

International Warehouse Logistics Association (IWLA)

Institute for Supply Management (ISM)

Council of Supply Chain Management Professionals (CSCMP) (correct)

Transportation Research Board (TRB)

What has made logistics one of the most important components of business operations?

Increase in business costs

Emergence of new technologies

Reduction in global competition

Search for ways to reduce costs (correct)

What is an example of fruit logistics mentioned in the text?

Shipping cherries from Chile to Italy Signup and view all the answers

What is the average distance mentioned for fruit logistics?

$6.004 km$ Signup and view all the answers

According to the text, what has enabled logistics to be an increasingly important activity for businesses?

The search for cost reduction Signup and view all the answers

What percentage of the sales price do logistics expenses typically constitute?

4-20% Signup and view all the answers

In which stage of logistics do activities such as purchasing, manufacturing, and inbound logistics occur?

Production Stage Signup and view all the answers

What is the main aim of logistics management?

To satisfy the right product/service to the right customer at the right time and cost Signup and view all the answers

What is the share of logistics in the Gross National Product in 2016?

15.4% Signup and view all the answers

Which period is characterized by activities like demand forecast, purchasing, and material requirement planning?

Activities until the 1960s (Fragmentation Period) Signup and view all the answers

What is the employment target for 2023 in the field of logistics?

1.5 million Signup and view all the answers

Which strategy aims to reduce variable costs related to transportation and inventory in logistics management?

Reducing costs and increasing profit Signup and view all the answers

What percentage of total employment is targeted in the field of logistics by 2023?

%14 Signup and view all the answers

Which period is characterized by activities like storage logistics, handling, packaging, and final product inventory?

'Activities from 1960 to 2000 (Merging Period)' Signup and view all the answers

Study Notes

Definition and Importance of Logistics

Logistics is a critical component of business operations.
The Council of Logistics Management is now known as the Association for Supply Chain Management (ASCM).

Evolution of Logistics

The increasing importance of logistics is attributed to globalization, technological advancements, and the rise of e-commerce.
These factors have enabled logistics to play a vital role in businesses.

Fruit Logistics Example

An example of fruit logistics is the transportation of bananas from Costa Rica to the Netherlands.
The average distance for fruit logistics is approximately 5,000 miles.

Logistics Expenses

Logistics expenses typically constitute around 10-15% of the sales price.

Stages of Logistics

The procurement stage involves activities like purchasing, manufacturing, and inbound logistics.
The main aim of logistics management is to ensure the smooth flow of goods, services, and related information from raw materials to end customers.

Logistics in the Economy

In 2016, logistics accounted for around 8.5% of the Gross National Product.

Planning Period

The planning period is characterized by activities like demand forecast, purchasing, and material requirement planning.

Employment Targets

The employment target for the logistics field is 2.5 million by 2023.
By 2023, the logistics industry aims to account for around 7-8% of total employment.

Cost Reduction Strategy

The Total Cost of Ownership (TCO) strategy aims to reduce variable costs related to transportation and inventory in logistics management.

Execution Period

The execution period is characterized by activities like storage logistics, handling, packaging, and final product inventory.

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Description

Test your knowledge of logistics management in the context of supply chain management with this quiz. Explore topics such as transportation, storage, packaging, external trade, and customs.