TUTORIAL 2: LOGISTICS VS.

SCM: ROLE OF LOGISTICS IN SCM

SECTION A (20 MARKS)

MULTIPLE CHOICE QUESTIONS (MCQ)
Answer ALL questions.

1. Logistics is the part of a supply chain involved with the forward and reverse
flow of _____________.
A. cash
B. goods
C. services
D. all of the above

2. The work required moving and position inventory throughout a supply chain
best reflect to?
A. Logistics
B. Purchasing
C. Supply Chain
D. Procurement

3. The process and activities that create value focused on the design and
administration of a system at a lowest total cost refer as _______________.
A. Logistics
B. Integrated logistics
C. Logistics management
D. Transportation integration

4. The work of logistics involves:

A. Order processing, inventory, and manufacturing
B. Manufacturing, customer accommodation, and purchasing
C. Inventory, transportation, manufacturing, and procurement
D. Transportation, inventory, order processing, warehousing, and facility
network design
5. Materials handling, transportation, and warehousing fall under:
A. Fill rate
B. Logistics
C. Purchasing
D. Demand Chain Management

6. Below are fundamental to transportation performance, EXCEPT:

A. Cost
B. Speed
C. Consistency
D. Order picking

7. Which one was NOT one of the characteristics of the “early days” of logistics?
A. Long transit times.
B. An emphasis on low-cost transportation.
C. An emphasis on making sure that the goods arrived in good condition.
D. An emphasis on customer satisfaction.

8. A supply chain which includes the distribution of finished product and service?
A. Transportation
B. Supply of goods
C. Outbound logistics
D. Inbound logistics

9. The objectives of logistics is/are __________________________.

A. rapid response
B. create visibility
C. consolidated movement
D. all of the above
10. The goal of logistics is _________________________________.
A. to achieve a target level of customer service at lowest possible cost
B. to achieve a targeted level of customer service
C. increase in the market share
D. all of the above

11. Inbound and outbound logistics is _________ in the generic value chain of
logistics.
A. a support activity
B. a primary activity
C. not an activity
D. the only activity

12. The logistical component of logistics mission ________________________.

A. reflect the vision of top management
B. refers to the value-added services offered
C. reflects the ability of firm to exploit market
D. deal with basic services required for delivering of goods

13. Logistics management is an _____________ part of the business and its

success.
A. integral
B. minimal
C. unrelated
D. none of the above

14. Just-in-time is a practice followed in __________.

A. China
B. Japan
C. Britain
D. America
15. A supply chain which includes the activities of receiving, storing, and
disseminating incoming goods or material for use?
A. Transportation
B. Supply of goods
C. Inbound logistics
D. Outbound logistics

16. An outbound-to-customer logistics system is also referred to as

_____________.
A. physical supply
B. physical distribution
C. store fulfilment
D. integrated fulfilment

17. All of these following are the area of logistics, EXCEPT:

A. Inventory
B. Transportation
C. Facility network
D. Process of Documentation

18. All of these following referred to the aspects of inventory strategy, EXCEPT:
A. Storage location
B. Product profitability
C. Competitor performance
D. Transportation integration

19. In the recent years, major gain logistical efficiency has come from which one
of the following?
A. Fast order processing
B. Reduction in petroleum prices
C. Advance in Information Technology (IT)
D. Increase in production of commercial vehicles
20. An inbound-to-operation logistics system is also referred to as
_____________.
A. physical supply
B. physical distribution
C. store fulfilment
D. demand management

SECTION B (5 MARKS)
TRUE / FALSE QUESTIONS
Answer ALL questions.

1. A company’s supply chain strategy determines the nature of procurement,

inbound logistics, manufacturing, and outbound logistics.

2. Reduction of inventory is a key objective of logistics management. False

3. Logistics packaging helps in reducing transit damage. True

4. Outbound logistics is also called upstream logistics. False

5. The third functionality of logistics is warehousing, material handling, and

packaging in representing an integral part of the logistics operation solution.
TRUE

SECTION C (20 MARKS)

ESSAY QUESTIONS
Answer ALL questions.
1. Define Logistics.
- logistic can be define as the entire process of materials and products moving
into,
through or out of a company.
- Logistic responsible for the flow of materials from suppliers into an organization
and out to the customer

(2 marks)

2. Discuss the two (2) differences of inbound and outbound of logistics. (4

marks)
- Inbound logistic

- the activities of receiving and storing incoming goods or materials for use rather than
outbound logistic is the process of storing, moving and distributing goods to deliver them
to their end customer.

- Example of inbound logistics including material handling,Example of inbound logistics

including material handling and returning to supplier.

- Example of outbound logistic includes all systems that help prepare an order for delivery
and get it to the end customer through delivery service.

3. Discuss any three (3) the importance of logistics in SCM. (6 marks)

Visibility
- Logistics management affords greater visibility into the supply chain.
- enables businesses to better control costs and spot supply chain problems

Reduced overhead
- Enables companies to reduce overhead in areas from cutting shipping costs
- shrinking how much warehouse space they need by proactively controlling
inventory levels.

Improved customer experience

- An excellent customer experience is the driving factor behind repeat sales.
- By delivering goods on time and quickly can enhance customer experience
and brand loyalty for future sales.

Support expansion
 - logistics management best practices help companies scale to fulfil more
customer orders on time.

4. Based on your understanding, explain any four (4) areas of logistics work.
(8 marks)

Inventory
- The inventory requirements of a firm are directly linked to the facility network
design and the desired level of customer service.

Transportation
- The operational area of logistics that geographically moves and positions
inventory.
- For example cost of transport and speed of transportation

Warehousing and Packaging

- is warehousing, materials handling, and packaging also represents an crucial part
of the logistics operation solution.

Facility network
- facilities used to perform logistical operations directly impacts customer service
capability and cost wether that bussines operation big or small.
- Facility network design is a primary responsibility of logistical
management.

END OF QUESTIONS