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LSCM Sem5 Vipul

This document discusses cost analysis in logistics and supply chain management. It defines logistics as incorporating transportation, warehousing, inventory, materials handling, and packaging. The goal of logistics cost analysis is to minimize total logistics costs while achieving a desired level of customer service. This involves attempting to reduce costs related to transportation, warehousing, inventory, information systems, and customer service activities rather than focusing on individual cost elements.

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pratiksha shinde
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0% found this document useful (0 votes)
2K views25 pages

LSCM Sem5 Vipul

This document discusses cost analysis in logistics and supply chain management. It defines logistics as incorporating transportation, warehousing, inventory, materials handling, and packaging. The goal of logistics cost analysis is to minimize total logistics costs while achieving a desired level of customer service. This involves attempting to reduce costs related to transportation, warehousing, inventory, information systems, and customer service activities rather than focusing on individual cost elements.

Uploaded by

pratiksha shinde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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L

cost analysis
whicn inventory,
inventd Brder
concept
is total
warehousing,
w a r e h o u s i n

and
g

ty cost
lot q u a n t i t y
t r a n s p o r t a t i o n ,

systems, level, i.e. aat


i.e.
COst of service

shol
shoul
i n f o r m a t i o n

customer

and m
maan
naag
geem
meen
ntt

processing desired

a service, attempting

while achieving c u s t o m e r

rather
than

level of costs
8 iven
8iven logistics activities.

total i n d i v i d u a l
minimise

of
minimise
the cost

QUESTIONS:

0BJECTIVE QUESTIONS:

item in the righ


the right
Fillin the
blanks: defined a s
having for the right príce
(1)
LogkstO
can be
the right place all industr
(1) time at
at the right
incorporates
and
quantity
science of
process

and is the

sectors.
Shipmentporate gouls
Transportation, cos
(Logistics, SCM, SyPPorT

The goal of logistics o cost, to hel


is overall
(2) to reduce
support corporate goals, service)
(to transportation,
better customer
tacilitate better of entire logistic
qted

a System-wide management
intea 3) lCAistiCS_is
chain as a single entity.
SCM, EDI)
(green logistics, integrated logistics,
of the 3C's of logistics
(4) C e s t is not a part
(competitor, company, customer, cost
on value advantage
is low on productivity and high
Sevce (5) eade cost leader, cost and service
leader, commodity leader,
(service
leader)
Oven 6) manag<nis not part of logistics performance cycle
a

(procurement, manufacturing, distribution, inventory


management)
(7) Activities associated with storing and physiçally distributing-
the product to the buyers are included in O9T ROlogistics.
(inbound, outbound, 3PL, 4PL)
(8) The scope of Green Logistics does not involve
cOst
society, environment, economy, cost)
(9) The following is not a part of the logistics functions of any
organization Puymnt follou p
(Pl ent, payment follow up, storage, distribution)
BMS) (VS) Introduction to Logistics
nagemeyt
(10)m a t e j a l A g n a g e m e

27
e total Production Control and physical distribution are
,

order the three major operations of logistics. (Oct. 18)


Cost, (Supply Chain Management, Materials Management, Logistics
. at a
Management, All of these)
hould (11) Which of the following is not an area to responsibility for a
ag to logistics manager? MvlAeHn
(Inventory, Marketing, Warehousing, Purchasing)
(12) Caeen gishSrefers to supply chain practices that strive to
reduce energy and environmental footprints in terms of
freight
distribution.
(Inbound Logistics, Green Logistics, Outbound Logistics, SCM
(13) Which of the following is not a component of 4PL? cem rol Poum
ght (Control Room (Intelligence), Resource Providers, Information,
rice Recycling)
stry [Ans.: (1 - Logistics); (2 to support corporate goals); (3 integrated
logistics); (4 - cost); (5 - service leader); (6 - inventory management);
(7 outbound); (8 - cost); (9 - payment follow-up); (10 - materials

management); (11 -

marketing); (12 green logistics); (14 - control


room)
p (2) State True or False:
S (1) 3PL is a form of outsourced logistics.
(2) A company high on productivity advantage and low on value
advantage is a commodity market leader.
(3) Competitive advantage cannot be gained though logistics
Material flow and information flow are a part
of the overall

logistics cycle. the adverse


(4)
(4 Environmental logistics looks at minimizing
impact of logistics on environment.
(5) Cube Minimization is a type of green logistics.
(6) Global businesses have shorter logistics chains. of
objective
(7) Keverse logistics is a part of life cycle support
logistics. Talna (it can be ganed only
QUESTIONS:
OBJECTIVE QUESTIONS:
(1) Fill in the blanks:
(a) is the
systemic,
traditional business functions. strategic coordination of the
(SCM, Logistics,
Transportation, dispatching)
hain Management
to Supply 43
I n t r
duction
o d

SCM intends to all the activities


(b) Global
(unify, centralize, standardize, minimize)
together.
An extended SCM is used when there are
(c) products.
(multiple, complex, less, simple)
(d) There are. flows in SCM.
(2.3,4,5)
Which of the following is not a part of Supply Chain
Management System?
(Funds Flow, Manufacturer, Information Flow, Competitor)
( Involves streamlining the distribution in
process
terms of physical and information efficiency.
(Technical Integration, Channel Integration, Channel
hierarchy, Vertical marketing system)
Ams.: (a- SCM); (b standardize); (c
-

multiple); (d 3);
-

(e-competitor); (f- channel integration)]


(2) State True or False:
(a) SCM is narrower concept as compared to
Logistics.
(b) SCM has cash flows.
(c) Integrating various activities is a biggest
challenge in SCM.
(d) Logistics concentrates on inbound and outbound movement
while SCM is concerned with
integration of various activities.
[Ans.:(a- False (Broader)); (b True); (c True); (d- True)]
-
-

(3) Match the following:


'A' B
(1) Cloth weaver venturing into | (a) Downtream SCM
yarn manufacturing
(2) Cement manufacturer gets (b)
into retail distribution
Upstream SCM
(3) SCM
(c) Micro Concept
(4) Logistics (d) Macro concept
LAns.: (1- b), (2 - a), (3 - d), (4 - c]
OBJECTIVE QUESTIONS:
(1) Fil in the blanks:
(a) is the king.
(supplier, manufacturer, customer, company)
(b) Customer service
policy formulation is a part of.
transaction, pre-transaction, post transaction, none of the
above)
in Management (8M Service a n dDemand
Forecasting 15
MS) Customer
order should also be complete in terms of all
recent period a (c)
The
cts of service
aspects Of
from order receipt to delivery coupled with
an error free invoicing.
6
7 8 (quick, perfect,
small, none of the above)
170 200 80 p e r c e n t
company's profit comes
of. from percent
(d) of customers.

80)
(20, 30, 15,
is the activity of estimating the quantity of a
T
Cycle Occurs a (e) that consumers will purchase.
es all processes product or service
(Demand forecasting, sales forecasting, production forecasting,
the customer's
transportation forecasting)
ycle at a retailer is concerned with a firm's ability to satisfy
stomer demand (
timely manner.
customer's requirement in
starts when the
(a) Minimum Inventory (b) Rapid Response. (c) Price
ends when the stabilization (d) Quality
Ans.: (a - Customer); (b = pre-transaction); (c - perfect); (d - 20);

uality is to do (e-Demandforecasting); (f- rapid response)]


d all the
time (2) State True
or False:
red customer (a) Order delivery cycle time is the taken to deliver once the order
a operational is placed.
hieve target (b) Order postponement is a part of post transactional phase.
ould also be (c) Reliability of order fulfilment is a part of transactional phase.
order receipt d) Fill rate measures the magnitude of or impact of stock over
means, the time.
d with zero (e)Weighted average demand forecasting is a qualitative method
ce must be of demand forecasting.
Ans.: (a - True); (b - False (Transactional)); (c - True); (d - True);
s such as
ation must (e-False (Quantitative))
(3)
Match the following
'A' 'B
(1) Building the organisation (a) Transactional
|Wide options of products to (b) Post transaction
offer
(3) Order return (c) 3 R's of customer service
4) Responsibility (d) Pre transaction

(5) Customer arrival (e) 7R's of logistics


of the 6) Right cost (f)Customerordercycle
g) Quantitative method
(7) Sales force assessment
(h) Qualitative method
8) Regression analysis
76 Vipul's Logistics and Supply Chain
Management (BMS)
(9) Measurement of Logistical
Customer Service with
(i) Speed, Consistency,
reference to Operational Flexibility
Performance (Oct. 18)
(10) Measurement of Logistical ) Stock out
Customer Service with
reference to Availability
Fill rates Frequency and
(Oct. 18)
Ans.:(1-d), (2 -a), (3-b), (4 c), (5- f), (6
-

(7.
(7- h), (8-9)o
-

(10-j) (8 -g)
THEORY QUESTIONS:
(9-
(1) Concept Questions:
(a) Customer Service.
(b) Perfect Order.
(c) Demand Forecasting.
d) Delphi Technique.
(2) Long Questions:
(a) What is
customer service?
services. (Oct. 10) Explain the
objectives of
(b) Explain customer
"demand forecasting and its benefits". (Oct.
(c) Explain the
pre and post 11)
transaction elements which
customer satisfaction.
(d) lead to
Explain customer order
the
(e) What are
the different cycle in detail.
(What is the need of ways of doing demand
(g Customer Service demand forecasting? forecasting?
(h)
process." What are Strategy can be
explained as three step
they and explain them a
Explain with example in detail.
(Oct. 14)
G)
forecasting. (Oct. 14) quantitative techniques of demanu
What is
customer
customer service. service? Explain the
(j) What is (Oct. 16) various elements of
Bullwhip Effect? Explain
Bullwhip Effects? (Oct. 18) causes andd npacts of
impacts
OVDNon 105
)(Vs
UESTIONSs:
E C T I V EQ U E S T I O N S :

blanks:
the
Fin in
links the various
Fill
integrated logistics activities.
(a
(Ware rehousing, transportation, dispatching, procurement)
ne are parties to transportation.
De (b (carrier, customer, government, all of the above)
Of delays are caused due to
delay at the start of the
(c transportation journey.
terminal, total, breakage, none of the above)
f is the most suited mode of
(d) transportation for long
distances.

(rail, road, pipeline, ropeways)


is the cheapest mode of transportation
(e
over long
distances.

(air, road, water, pipeline)


mode of transport has the highest operational
(
costs. (air, water, road, rail)
is the slowest mode of transportation.

rope, rail, air, road)


with
(h) Unit load is concerned
(train, container, road, ship)
(i) Following is not type of Piggy- Back.
(LASH, TTFC, COFC, TOFC)
) RO-RO concept means:

(Roll On-Ride Off, Ride On-Ride Off, Roll Off-Roll On,


Roll On - Roll Off)
(c- terminal); (d- rail);
Ans.: (a transportation); (b all ofthe above);
-

container); (i LASH); (G- Roll


on
(h
-

fe
- water); (f- air); (g rope); -
-

Roll off]
(2 State True or False:
ransportation creates place time and utility.
transportation
the only function of
Froduct movement is be ignored
from overall
has to
(c) Opportunity cost of.capital
transportation cost. ortation cost.
transportationcost
d) Insurance«costs are included in the total is called
transportation
of more than 1 mode of
Usage
multimodal transportation.
106 Vipul's Logistics and Supply Choin Mano.

Ans.:(a True); (b - False (product Manogement ((8B


movement and

(3)
(c-False(included); (d-True): (e - True)]
Match the
duct str
following:
'A
(1) Birdy back
B
(a)
(2) Fishy back
Road+rail
(b) Air +land
(3) Piggy back
(Oct. 18) (c) Water+land
(4) water transport
(d) Most expensive
5) Air transport
(e) Cheapest
6) Rail transport
( Most flexible
(7) Pipeline
(g) Not flexible
LAns.:(1-b), (2 c), (3 a), (4 e), (5 d),
-

(6- g), (7 -D]


-

THEORY QUESTIONS:
OBJECTIVE QUESTIONS:
(1) Fill in the blanks:
(a) is that part of firm's logistics system that stores
products at and between point-of-origin and point
pointof
Consumption.
godown, warehouse, dumping place, shop floor)
(b) is not the basic component of a warehouse.
COst. people, equipment, space)
(c) A warehouse that is used to
disintegrate a larger unit into
smaller unit is
(break bulk, mixing, private, contract)
(d) Fixed cost is high in. type ofwarehouse.
(public, private, contract, bonded)
VYY 133
enousing9
*OUSINg
gives us the number of warehouses required for a

(e level of inventory.
Pareto's law, EOQ model, none of the above)
desired

law,
(squareroot cost); (c break bulk); (d private); -

warehouse); (b
-

Ans.: (a
(e-square root law)

True o r
False
State to achieve transportation synergies.
Narehouse
W
helps
(a) the function of warehouse.
Manufacturing is warehouse.
(b) a n economic
benefit of a
Production support is should choose
are for a few location we

When shipments
d) consolidation w a r e h o u s e .
the
provides an inventory buffer throughout
() Stock
(e piling
- False (Cross
False (service); (d
season.

True); (b
-

False); (c
[Ans.:(a
docking)); (e- True)]
Match the following:
B
'A
(a) Service benefit
1) Consolidation
(b) Economic benefit
(2) Spot stock
Economical
(3) Private warehouse (c)
I (d) Government
(4 Public warehouse
(e) Most flexible
(5) Bonded warehouse

a), (3 e), (4 - c), (5 d)l


-

Ans(1-b), (2 -
-
QUESTIONS:

OBJECTIVE QUESTIONS:

(1) Fill in the blanks:


add to value it also
(a) Material handling doesn't just add.
ds to
all of above)
(cost, space, productivity,
(b) The enables
principal of material handling that enables better
hs.
utilization of human efforts is -principle.
(planning, cost, productive, ergonomics)
c)The principal of material handling that enables betterusage of
natural resources is. principle.
(environmental, cost, productive, planning)
d) Reduced. handling of the material.
manual, mechanical, robotics, none of the above)
(e) are used in applications where a continuous flow
of material over a long distance is required.
(Conveyers,AGVS, Sorting devices, Fork lift trucks)
( Special purpose material handling equipment are used in

(line layout, process layout, both 'a'and b', none of the above
Ans.: (a - cost); (b - ergonomics); (c - environmental); (d - manual;

(e- Conveyers) (f- both)]


(2) State true or false
(a) Material handling problems are largely due to the problems of
a bad layout.
(6) Material handling equipment, controls, and software should be
standardized.
(c) Wherever practical, gravity flow should not be incorporated in

system design.
(d) Equipment selected should have great enough load-carrying
characteristics.
teiadFranoling
cranes
(6 are used for movement of very heavy items
145

Overhea ads
distance.
short
a
e

over True (c -

False (should be)); (d -

True);
True); (b
-

IAns: ( a - True);

(-True'
M a t c h t h ef o l l o w

ing:
i n g :

'B
'A
(a) Standardization
( ) Integration

(b) Ergonomics
2) Flexibility

(c) System Integration


usage
Ease of
3)
4 M e c h a n i z a t i o n
(d) Objective of material handling
logistics (e) Automation
(5) Improving

management
() Robotic
(6 Hand Truck
(g) Mechanical
7 AGVS
(h) Auto Guided Vehicle
truck
Fork lift
(8) Path Variable (i) Manual
Fixed
9 Destination
Material
Handling Equipment|
(Oct. 18)
d), (6-i), (7-f, (8-
g), (9-h)]
a), (2-b), (4 e), (5 - -

[Ans.:(1- c), (2
-

THEORY QUESTIONS:

(Oct. 15)
() Concept Questions: equipments?
material handing Comment
various
What a r e the
value".
a)
(a) and no
adds
handling
only costs
"Material
6)
statement. (Oct. 10) beforeselecting
on this into
consideration

a r e to
be taken
factors
What (Oct. 18)
material handling equipments? handling
Material
Principles
of
Guidelines or
Explain
a
QUESTIONS:

OBJECTIVE Q U E S T I O N S :

blanks:
Fill in the
to meet marketing objectives
(a) Product packaging is designed
with a view to
but logistical packaging is designed
objectives.
(pricing, distribution, selling, storage)
heht h efollowing 163
ng
Mact
h he

162 Y Vipl'sM Logistics and Supply Chain Manageme A


162
Management (BMS) (VS) (a) Liquic B'
(b) Process of grouping a large number of products in
in conveni
.
Glass
Tetrapacks (b) Food items
packs is called

(unitization, containerization, unit load, none of


Plastics cans

(c)Brittle
| (d)
The process of staking individual products the above Aluminiumf o i l
Glass
on pallets and master.
tightly securing them with metal cartons
or
dHay/drY grass
(e Medicines
shrink films is called_ stran.
straps ( Containers
or p a c e

lity
u t i l i t

(palletization, unitization, containerization, unit load) 2-a). (3-b),(4-e),(5-d),(6-


d) For unitization of load the -c)
size of the unit load
industry usually standardize QUESTIONS:

es the
platform called peviewQuestions:
1s:
(slip sheet, container, COFC, ROR0)
(e) is the most durable he role of packaging in modern logistics? (Oct.
What
i sthe
packing material. 11)
(plastic, wood, metal, glass) "Concept: Objectives of P'ackaging. (Oct. 13)
( -
packaging in which
packaging is
LongQ u e s t i o n s :

consumer convenience. designed for 10 What are the


the basic
are basic requiremer
ne
requirements Orof packaging.
requir
basic
packaging
What
(industrial, retail, international, none of the a the various packing materials.
[Ans.: (a distribution); (b unitization); (c
-
-
above) (b)
Elaborate

d Discuss with examples the benefits of good packaging.


palletization),;
-

sheet); (e- metal); f- retail)) (d -


slin DIs)
(Oct. 14)
(2) State true or false
Byolain Primary, secondary, ertiary Packaging and unit load?
(d) Explain
(a) The primary
purpose of logistical packaging is to (Oct. 18)
damage of the product. prevent
(b) Containers are devices in
which individual items or
cartons are master
placed during the transportation activity.
(c Pallets
packaging does not give complete protection to the
product from the environmental effects.
(d) Due to standardization
of pallet sizes
international standards the conforming to
very difficult.
loading and
unloading operation is
(e) Material
Handling is an objective of packaging.
(9 Cube
minimization forms a part of
Ans.: (a- True)}; (b True); packaging
(c True); (d False
-
-

(f-True)] (easy); (e - Truel;


-
QUESTIONS:
OBJECTIVE QUESTIONS:
(1) Fill in the blanks:
(a) is not a type of inventory.
(raw material, wastage, WIP, spare parts)
(b) process permits each product to be manufactured and
distributed in economic lot sizes that are greater than market
demand.
Decoupling, geographical specialization, EOQ none of the
above)
(c) is a concept based on the fact that the activity should
not take place until there is need for it.
JIT2, IIT, EOQ, Perpetual inventory)
d) has a fixed ordering interval but the size of order
quantity may vary with the functions in demand.
(Psystem, Q system, JIT, ABC)
(e) categorization is based on value and volume of
inventory.
(XYZ, FSN, VED, ABC)
(f) categorization is based on the supplier of inventory.
(XYZ, GOLE, SOS, VED)
Ans.: (a- Wastage); (b -

Decoupling); (c -JIT); (d - P system)


(e-ABC); (f-GOLF)]
(2) State True or False:
(a) Balancing demand and supply is not a function of inventory.
(b) Inventory helps us to hedge against future price increase.
(c) There is continuous surveillance of the stock level in Q system.
Control
n t o yM o n o g e m e n to n
and
Inventory
205
1anagement
wentoy. based on ordering cost.
is only
EOQ
demand
is a requirement for EOO.
d U n i

is)); (b
f o r r n

True);
T (c - True); (d -

False (ordering and


e) False (lt -

(a
( A n s . :
True)]
a r r y i n g ) ;( e - T rue

M a t c h t h ef

ollowing:
o l l o w i n

B'
A
(1) Carrying cost (a) Inventory cost
(2) Ordering cost (b) Variable
(3) Damage cost (c) Fixed

(4) JIT2
(d) Quantity ordered is variable
(5) PSystem
(e) Vendor managed inventory
(6) Q systemn
(f) Quantity ordered is fixed
SOS (Oct. 18) (g) Selective criteria criticality of the
part to
operations
(Oct. 18) (h)
Selective criteria Seasonality
(8) VED
AS.(1-b), (2-c), (3-a), ( - e), (5-D, (6-d), (7 - h), (8 g)]
THEORY QUESTIONS:
QUESTIONS:
OBJECTIVE QUESTIONS:
(1) Fill in the blanks:
(a) is a set of customer service to be achieved
goals hby
the system within the specific market/product context.
(goal, mission, objective, none of the above)
(b)Logistical costing involves the calculation of the total logistica
cost is called
(Mission based costing, traditional costing, activity based
based
COsting, none of the above)
(c) Logistics costs are generally to the function handling
that particular logistics.
(apportioned, assigned, distributed, none of the above)
(d) -cost of a fixed asset shown in the balance sheet is non
cash cost.
depreciation.interest, breakdown, installation)
[Ans.: (a Mission); (b -

activity based costing); (c -apportioned);


(d-depreciation)]
(2) State True or False:
(a) Logistics costing focuses on input cost.
(b) Costing to meet the desired mission is mission based costing.
(c) Effective logistics costing system must ascertain all the costs of
achieving desired logistic objectives.
(d) Activity based costing breaking down these processes into the
relevant activities performed during the
processes.
[Ans.: (a False (overall cost control)); (b - True); (c-True); (d- True)]
-
stics Costing
VVV * *
217

Match the following:


A 'B'
(1) Traditional Costing (a) Inclusive
(2) Modern costing (b) compartmentalized
(3) Transportatioon (c) Number of warehouses
(4) Warehousing cost (d) Number of delivery
(e) Number of units
(5) Packaging
Ans.: (1-b), (2
-

a), (3 -

d), (4-c), (5- e)]


236 Vipul'
(10)
LogAtiesandSupply Chain Manageme nt
Logistics audit examines and tests the operations of logisti.
(BMS) (N
s procese
in terms of quality, technology, productivity and external
ernal facto
factors PrOce
The auditing process reveals weakness if any in thethe logis.
logistic
of the company. The test results can help in offering proposalsyste
firm for improvement by investing in the system, equipmenA orh to the
system
technology
QUESTIONS:
OBJECTIVES QUESTIONS:
(1) Fill in the blanks:
(a) system gives insights into the financial and.
financial measures taken by the firm. non
(Performance measurement, logistics, costing, none of athe
above)
(b) examines and tests the operations of logistics DrOee
in terms of quality, technology, productivity and
external mal
factors.
(SCM, Logistics audit, Performance check none of the above)
(c) is a financial measure of performance measurement.
Operating.cost, quality, productivity, benchmarking)
(d) is a non financial measure of
measurement.
performance
(Responsiveness, relationship, order fulfillment, RO)
(e) 3PL suppliers are providing some extra services to clients in
addition to the normal
logistics services is an
example of

(differentiation, cost leadership, value added, none of the


above)
TAns.: (a Performance measurement); (b
-

Logistics
c-Operating cost); (d - order fulfillment); (e value added)|
-
-

audit,
(2) State True or False:
(a) A higher output to input ratio is a measure of the system
efficiency and effectiveness.
(b) Directing is an objective of
(c)Service quality is an performance measurement.
internal measure of performance
measurement.
d) Order fulfilment an
customer service of theimportant criteria
of
firm.
to judge the
iev
performance M a n a g e m e n t
VL 237

(e)
(e) Service reconciliatiorn is an
important feature of an ideal
measuring system.
Ans.: (a True); (b-True); (c- False (external)); (d-True); (e - True)]
-

(3)
Match the following:
'A' B
(1) Daily Fund flow (a) Controlling
(2) Order fill rate (b) Monitoring
(3) ROI (c) Non Financial
(4) Asset Management (d) ExternalI
(5) Benchmarking (e) Financial
6) Internal Performance Measure | (f) Productivity
(Oct. 18)
[Ans.: (1-b), (2 - a), (3- e), (4-c), (5-d), ( 6 - ]
A
244 VV"V" Vipul'sM Logisticsand Supply Chain M

QUESTIONS:
nagement (BMS
OBJECTIVES QUESTIONS:
(1) Fill in the blanks:
(a) A is a round trip which facilitates hos
and collection. distri
(MilkRun, RORO, LASH, none of the above)
(b) ships are vessels designed to carry wheeled .
(Fishy back, RORO, LASH, Birdy back) cargo.
[Ans.:(a- Milk Run); (b -RORO)]
(2) State True or False:
(a) Fixation of weight and volume of suppliers in a
particuar
region is a part of Milk Run.
(b) Delivery and pick up of gas cylinders is not an example ofl k
Run.
(c) The main benefit of Milk Runs is higher utilisation of trucde
costs.
and the resulting reduction of transport
[Ans.:(a -

True); (b-False); (c- True)]


n System
12)
stés
omo
258 9T Vipul'sM Logistics and Supply Chain Manan
259
agement (BMS) VS RFID standsfor
12.6 IMPORTANT CONCEPTS:
adio
frequency
distribution
identification
system, radioliorequency
frequency
(1) MIS: The information system is an
interacting struch.
structure
invento distril system, radio frequency
frequency integrated
equipment, methods and control, designed to creatOfDe ot people, none oftheabove)
te ystem,

flow in the required format for the user to take


ake decisin.omae
decisions inforormatiom KM
s t a n d s
for

risk. A management information system which ich atote


assists inreduce c (Knowledge
measurement, knowledge
making of crucial decisions for the organization must
the usual, natural and deliberate errors which are
wledge mapping, none ofthe above)
structured transmission
management,
g
likely
to occur in against of data
he very collectiorn, transmission, reception and and proeo
processin (d g a n i z a t i o n s
by electronic means. between
information.
Sing (EDI,
LIS, MRP,
DRP)
(2) EDI: Electronic data interchange is the structured tran. provides
provides decision makers with the
data between organizations by electron means. It is mission of e urate reporting
and analysis needed to make timely and
transfer electronic documents or business data
data from one
o used to nd
more
cost effective decisions. better, faster
system to another computer system, 1.e. from one trading nPute Quadrant material
another trading partner without human
intervention. It artis ner to (LIS,
MIS,
management, Knowledge
thanmere e-mail; for instance, organizations: Management)

might replace
more
Ans.: (a - Production planning), (b Radio
messages. lls ot frequency identification
-

and even cheques with appropriate EDI messa


lading
It als system); knowledge management); (d - EDI); (e -Quadrant material
refers specifically to a family of standards. also
(3) RFID: Radio frequency identification, systems management)]

transponders to transmit significant amounts of data to athat State


True or
False:

often used as part of a real-time locator system. 2) also contains production system planning
This isis used i (a) LIS
is a part of LIS.
transportation where we can exactly find the location of the (b) Early warning systems
when in transit. A lot of courier companies like DHL, etc goods
use thie is an integrated component of LIS.
help customers track their consignment. nis to (d EDI
(c
can be formally defined as the transfer of structured data,
(d) EDI
advanced automatic identification
An
technology such as the by agreed message standards, from one computer system to
Auto-ID Labs system based on the Radio another without human intervention.
Frequency Identificatio
(RFID) technology has significant value for inventory with sourcing inventory.
systems, (e) DRP deals
Notably, the technology provides an accurate knowledge of the False); (b -

True); (c -

True); (d True); (e False


current inventory. In an academic study performed at Ans.:(a-
RFID reduced
Wal-Mart, (Distributiom)]
Out-of-Stocks by
30 percent for products selling
between 0.1 and 15 units a day. Other benefits of ) Match the following:
using RFID B
include the reduction of labour costs, the
simplification of business 'A
processes, and the reduction of inventory inaccuracies. (1) LIS (a) Procurement
(b) Distribution
(2) MRP
(3) DRP (c) Decision support system
QUESTIONS: (d) Improves ordering
4) Feature of LIS
OBJECTIVES QUESTIONS: |(5) Quadrant Material
accurateness

(1) Fill in the blanks: (e) Flexibility


Management
(a) is not a part of LIS. (5-4))
lAns.:(1-c), (2- a), (3- b), (4-e),
(Inventory management, procurement planning, producu
planning, distribution planning)
266
Vipul'sTM Logistics and Supply Chain Managemes
ent (BMS) (VS
M o d e r nL o g i s t i c s i n f r a s ture 13 267
purpose of
its alignment. In the first
logistic parks along phase, DEO (b) Cot
F or the examination, assessment of
DFC CCIL wil
containeriZed cargo, both import and export, the
the Western DFC
be constructing two corridors
-

route.and
are set up.
DFC spanning a total length of about 3300 km
Ludhiana in
m route.
Punjab will
Thastem
The
pass #. East
Eastern CFS, ICD, Dry port, none of the above)
has the highest number of ICDs in India.
Corridor, starting from
states of Haryana, Uttar Pradesh, Bihar and terminate
at terminate sugh the (c)
( Port, CONCOR, DFC, none of the above)
in West Bengal. The Western Corridor will traverse
from Dadri to Mumbai,' passing through the states
thekunj
raverse the Dankuni
distance (d)
should be strategically located with
good road, rail
and air connectivity.
Haryana, Rajasthan, Gujarat and
Maharashtra. elhi, (ICS, CFS, Logistics park, CONCOR)
Golden Quadrilateral Project:
The Golden Quadrilateral is a highway network (e)
is a
highway network
connecting India's four
India's four largest metropolises: Delhi, Mumbai, Chentng
and
necting largest metropolises.
Golden Quadrilateral, CONCOR, East west corridor, North
Kolkata, thus forming a quadrilateral of ports. Four other
metropolises: Bangalore, Pune, Ahmedabad, and Surat, top ten
are south corridor)
served by the network. The largest highway project in Indi also
[Ans.: (a - unit load); (b - CFS); ( c - CONCOR); (d - Logistics park);

is n
the first phase National
of the Highways Development D (e-Golden Quadrilateral)]
(NHDP), and consists of building 5846 km of four/six e State True or False:

express highways Z60,000 crore.


at a cost of (a) Dry ports are essentially inland inter- modal Clearing Houses.
The GQ project establishes better and faster transport netwo (b) Containerization provides ease of handling.
between many major cities and ports. It provides an impetus to CFS brings port facilities to customers in hinterland.
smoother movement of products and people within India. t (d) Double-stack rail transport is a form of intermodal freight
enables industrial and job development in smaller towns throueh
transport where intermodal containers are stacked too high on
access to markets. It
provides opportunities for farmers through
better transportatiorn of produce from the agricultural hinterland
railroad cars.
(e) Dedicated freight corridor is a part of NHAI (National
to major cities and ports for export, through lesser wastage and
Highway authority).
spoils. Finally, it drives economic growth directly through True); (e False
True); (c - False (ICD); (d
-

[Ans.: (a True); (b
-

-
-

construction as well as through indirect demand for cement, steel


and other construction materials. It gives an impetus to truck (Railways)
(3) Match the following:
transport throughout India. 'B
A'
(a) Crude
1) Thermal Container
QUESTIONS: (b) Logistics Park
(2) Liquid container Decongestion of port
OBJECTIVES QUESTIONS: (c)
(3) Gas container
(d) LPG
(1) Fill in the blanks:
oaa (4) ICD control
(a) Containerization is a concept of tinit facilities with (e) Temperature
5) Warehousing
(slip sheet, unit load, consolidation, none of the above efficient Transportation

connectivity (Oct. 18)


(4-c, (5-b)
lAns.: (1-e), (2- a), (3-d),
IltpeteNcles.
QUESTIONS:
OBJECTIVES QUESTIONS:
(1) Fill in the blanks:
(a) is not a
part of third party logistics.
(transportation, warehousing, procurement, information
management)
(b) is not a part of reverse logistics.
(Refilling, procurement, refurbishing, recycling
[Ans.: (a Procurement); (b- Procurement)]
-

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