Logistics Final Exam Review Sheet

Objective Questions: 65 points 80-20 rule ABC analysis/Critical Value Analysis average inventory batching blanket rates carrying cost components channel of distribution functions channel of distribution commercial zone customer service components customer service levels customer service direct relationships dynamic analysis EOQ EOQ model assumptions factors affecting sales in companies family grouping fixed locator method FOB destination/FOB origin general area configuration grid technique heuristics history of logistics indifference point [calculation] inventory rationale leasing levels of optimality linear programming linear transportation rates link logistics activities market area boundary [calculation] material planning and control process materials handling objectives materials handling materials management modified area configuration movement operations nodal location factors node number of warehouses order cycle stages order cycle ordering cost packaging physical distribution physical supply price break private warehousing public warehousing services public warehouse responsibility

purchase economies push/pull promotion random locator method reorder point retailer safety stock/buffer stock sensitivity analysis sequencing simulation size of warehouse determination static analysis stockout storage bays substitutability supply chain tapering transportation rates transit time transportation economies utility: time, place, possession wholesaler zoning land bridge birdyback fishyback piggyback RoadRailer IMC common carrier contract carrier regulated carrier exempt carrier private carrier international water carriers containerization

Discussion Questions: 35 points logistics interface with other functional areas of the firm [where and explanation] fixed order quantity versus fixed order period (interval) inventory control systems characteristics, graphs, flowcharts JIT versus traditional inventory management [compare, contrast] Materials handling equipment [characteristics, purpose, examples, etc.] movement: trucks, conveyors, cranes storage: pallets/skids, shelves/racks, containers

DISCUSSION QUESTIONS [35 points]

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[actual questions on exam]

How does business logistics interact with marketing, production, finance, and accounting? Name each area of interaction and what effect it has [How does logistics affect these areas and how do these areas affect logistics?] (7 points) How does the JIT (Just In Time) method of management differ (differences and/or tradeoffs) from the traditional (American) way ? Address the following areas: inventory levels, suppliers, labor, production line (schedule), and transportation (5 points) Discuss the six major types (categories) of equipment used for materials handling. Give the characteristics and purpose of each type of equipment. Give at least two examples for each category of equipment (name and explain each example) [hint: 3 types of movement equipment and 3 types of storage equipment] (10 points) Explain the difference (compare and contrast) between the "fixed order quantity" and the "fixed interval (order period)" inventory control systems. Explain when each would most likely to be used. Draw graphs and/or flow charts in your explanation to show how each control system works. (Label all graphs.) (13 points)

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BONUS QUESTIONS

(5 points)

There are five bonus questions based on two articles: Politicians Sign Off on Bill The Golden Age of Wireless