MNP 2602 MCQ-and-Essay-Questions.

Key Definitions: MCQs 1. Define the term ‘logistics management’. • The part of supply chain management that plans, implements and controls the efficient and effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption to meet customers’ requirements. It includes inbound, outbound, internal and external movements, and is relevant in both manufacturing and service organisations and in both private and public-sector organisations. 2. Define the term strategic sourcing from both abroad and a narrow sense a) In a broad sense, strategic sourcing is all the issues that are of strategic importance in the supply of materials and services to a modern organisation. b) In a narrow sense, strategic sourcing is the strategic management process whereby commodities (materials and services) and suppliers are analysed, and relationships are formed and managed according to best practices and appropriate strategies in support of long-term organisational goals. 3. Define the term value chain a) The value chain (developed by Michael Porter) comprises primary and support activities that can lead to a competitive advantage for an organisation when they are configured properly. The value chain is also seen as a management philosophy. b) Explanatory notes on the term "value chain": i. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and customer service. ii. Support activities include purchasing, human resources management, technological development and infrastructure. 4. Define distribution management a) Distribution management entails managing downstream processes (or outbound logistics) and activities to deliver and thus physically distribute the product or service from the end of the production line to the ultimate (or end) customer. 5. What is the main difference between a supply chain and a value chain? A. [1] A supply chain is focused on the supply activity, whereas the value chain is focuses on value-adding activities. B. [2] A supply chain has different upstream and downstream linkages, whereas the value chain has only downstream linkages. C. [3] A supply chain consists of the value-adding activities of a network of organisations, whereas a value chain consists of the value-adding activities of a specific organisation.