Chapter 1 Questions

Logistics

Chapter 1

1.

Logistics contribute by making easier and faster the communication from point to point, in the case of time utility by making faster the availability of products needed by customers. And in place utility by making easier to get.

2.

Effectiveness is “How well a company does what they should do”, efficiency is “how well company resources are use”. A logistic system can be effective in the way it provides the service and the fact customers received the products, but not efficient because resources could have been better used, cheaper and faster.

3.

Logistics is more than traveling a product from place to place, is meeting customers needs of getting the product in time and in the place they need it, when they need it.

4.

The systems approach shows that the objectives and goals of the major functional areas should be compatible with the company’s goals and objective. It is applicable to logistics management because it totally varies depending on companies goals and objectives.

5.

Demand Forecasting: It tries to calculate with studies and previous data how will demand be in the future.

International Logistics: Refers to all the movement done outside the domestic market, it is more challenging that domestic because is has more factors.

Inventory Management: Refers to maintain stock and its deeply related to demand forecasting.

Facility Location Decisions: It is one of the more important factors since the success of a retail store depends totally on it.

Customer Service: A very important factor in which you have to “Keep customers happy”