Elements of Logistics Management Concept Testing


1) Benchmarking = helps to identify the key performance measures to improve in the firm and tracks the historical and current performance levels
2) Terminal delays = occurs in the terminal facilities provided in transportation and refers to any inconvenience or delay caused to truck operators
3) Customer retention = offering continuous satisfaction to customers and excellent gifts so that customer keeps coming again and again to the company to satisfy his needs
4) Vendor managed inventory = supply chain practice where the inventory is monitored, planned and managed by the vendors on behalf of the consuming organization
5) Lead time = difference between the customer’s order and the final delivery of the product
6) Intermodal transportation = use of one or more modes of transport to move shipment to its destination
7) Reverse logistics = deals with products that flow in opposite direction as against standard logistics channels
8 ) JIT II = extension of JIT concept (Just In Time). It means having a representative of the supplier at the buying organization’s facility
9) Obsolescence cost = losses incurred by the company due to outdation of the goods which have lower value when the new models are introduced in the pipeline
10) Customer service = to provide customer satisfaction, build good rapport with the customers, provide good quality products and services
11) Fill rate = common measurement of customer service performance of inventory which is also called as Order fulfillment
12) Fourth party logistics = sharing of sources of supply chain activities between the client and the teaming partner
13) Operating objectives of logistical management = rapid response, minimum variance, movement consolidation, quality, life cycle support
14) EDI = Electronic Data Interchange is exchange of information/business data from business to business and computer to computer in a standard and structured format
15) Reorder level = normal consumption + safety stock. Time of placing a new order when the total stock in hand is sufficient to meet the normal consumption and the uncertainties in lead time
16) Logistics management = process of planning, storing and implementing the effective and efficient flow and storage of goods, services and related information from the point of origin to the point of consumption to meet the customer requirement
17) Advantages of hiring public warehousing = less expensive, offer greater operating and management expertise, lower variable cost, easy to change location, flexible, operate on a monthly contract
18 ) Matrix organization = assigns each workers to two bosses in a hierarchy and carries out the logistical functions in connection with the traditional functions
19) Activity based costing = relate the relevant expenses to the value added activities performed
20) MRP – I and MRP – II = MRP I is the scientific way of planning the material usage and ordering at various levels of production. MRP II is an extended model of MRP to overcome the shortcomings of MRP I
21) Cross docking = practice in logistics of unloading materials from an incoming rail car and loading these materials in outbound rail cars, with little or no storage in between
22) EOQ = Economic Order Quantity is that inventory level which minimizes the total cost of inventory
23) Bill of material = contains description of the material, quality specification, quantity and time required
24) Palletisation in material handling = reduces the time required to load and unload the goods from the vehicles and warehouse space
25) Internal performance measure in logistics = comparing the activities and processes with the previous operations and goods
26) Drivers in reverse logistics = primary reasons for installing the reverse logistics system i.e. customer returns of new products, customer returns of used products, customer returns of reusable products
27) Product related factors in transportation costs = distance, volume, density, stowability, handling, liability, market factors
28 ) Basic functions of warehousing = warehouse is a place to store the inventory. Functions are – receive, store, mixing, remove, deliver the material, keep the records perfectly, packaging, good housekeeping, verification of stocks at regular interval
29) ABC classification in Inventory control = it states 10% of items hold 70% of value i.e. in every company, a big percentage of investment in inventory is concentrated on a relatively few high-value items
30) Relevance of distance and volume to transportation cost = distance has a major influence on transportation cost as it directly contributes to variable cost such as labor, fuel and maintenance. In volume, the transport cost of weight decreases as load volume increases because the fixed and administrative costs are spread over
31) Internal and external logistics information system = internal provides information of the logistical activities within the organization, and external provides adequate and relevant information to the customers
32) DRP = Distribution Resource Planning is a logistical extension of MRP and considers multiple distribution centres
33) Pipeline in modal transport = major forms of transportation medium throughout the world to transport liquid materials like petrol or gaseous materials like natural gas
34) Pipeline as a form of inventory = represents the stock that is either moving or awaiting movement in transportation of vehicles. It can be defined as the materials moving forward but not yet received at the destination


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