Topic 01: Overview of Logistics & Supply
Chain Management
Logistics - correct answer-The part of supply chain management that plans, implements, and
controls the efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and the point of consumption in order to meet
customers' requirements.
Supply Chain - correct answer-The material and informational interchanges in the logistical
process stretching from acquisition of raw materials to delivery of finished products to the
end user. All vendors, service providers and customers are links in the supply chain.
Total Cost Concept - correct answer-In logistics, the idea that all logistical decisions that
provide equal service levels should favor the option that minimizes the total of all logistical
costs and not be used on cost reductions in one area alone, such as lower transportation
charges.
Integrated Logistics - correct answer-A comprehensive, system-wide view of the entire
supply chain as a single process, from raw materials supply through finished goods
distribution. All functions that make up the supply chain are managed as a single entity,
rather than managing individual functions separately.
Value Chain - correct answer-A high-level model of how businesses receive raw materials as
input, add value to the raw materials through various processes, and sell finished products to
customers.
Trade off - correct answer-A technique of reducing or forgoing one or more desirable
outcomes in exchange for increasing or obtaining other desirable outcomes in order to
maximize the total return or effectiveness under given circumstances.
Product/service Flow (downstream) - correct answer-One example is sending out a shipment
to the customer.
Financial Flow (downstream) - correct answer-One example is reimbursing the customer for
a wrong order.
Financial Flow (upstream) - correct answer-One example is paying the supplier for a placed
order.
7Rs - correct answer-Right product. right customer, right time, right place, right condition,
right quantity, right cost.
7Rs - correct answer-
Chain Management
Logistics - correct answer-The part of supply chain management that plans, implements, and
controls the efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and the point of consumption in order to meet
customers' requirements.
Supply Chain - correct answer-The material and informational interchanges in the logistical
process stretching from acquisition of raw materials to delivery of finished products to the
end user. All vendors, service providers and customers are links in the supply chain.
Total Cost Concept - correct answer-In logistics, the idea that all logistical decisions that
provide equal service levels should favor the option that minimizes the total of all logistical
costs and not be used on cost reductions in one area alone, such as lower transportation
charges.
Integrated Logistics - correct answer-A comprehensive, system-wide view of the entire
supply chain as a single process, from raw materials supply through finished goods
distribution. All functions that make up the supply chain are managed as a single entity,
rather than managing individual functions separately.
Value Chain - correct answer-A high-level model of how businesses receive raw materials as
input, add value to the raw materials through various processes, and sell finished products to
customers.
Trade off - correct answer-A technique of reducing or forgoing one or more desirable
outcomes in exchange for increasing or obtaining other desirable outcomes in order to
maximize the total return or effectiveness under given circumstances.
Product/service Flow (downstream) - correct answer-One example is sending out a shipment
to the customer.
Financial Flow (downstream) - correct answer-One example is reimbursing the customer for
a wrong order.
Financial Flow (upstream) - correct answer-One example is paying the supplier for a placed
order.
7Rs - correct answer-Right product. right customer, right time, right place, right condition,
right quantity, right cost.
7Rs - correct answer-
