Logistics involves the integration of traditional business functions such as order management, inventory control, transportation management, and warehousing to create a seamless process.

• True

• False

Logistics solely focuses on transportation management and overlooks other business functions like order management, inventory control, and warehousing.

• True

• False

What is the primary goal of logistics management?

• Maximizing total cost

• Minimizing inventory control

• Creating value through efficient inventory management at the lowest total cost

• Eliminating warehousing

Logistics management involves controlling the timing and positioning of __________ to achieve cost-effective results.

• Customers

• Inventories

• Competitors

• Prices

In the supply chain, when does logistics add value?

• When inventory is strategically positioned to achieve sales.

• Increasing lead times for production and transportation

• Aligning performance cycle structure and dynamics

• Ignoring customer demands

Logistics plays a role in achieving desired time, place, and possession benefits for inventory at the highest total cost.

• True

• False

Inventory should be at the right location and right time to facilitate value creation and ownership transfer.

• True

• False

Logistics is solely responsible for managing inventory levels in the supply chain.

• True

• False

Answer explanation

•Logistics is responsible for moving and positioning inventory to achieve desired time, place, and possession benefits at the lowest total cost.

Chapter 2 Slide No.8

The objectives of integrated logistics include optimizing inventory levels, minimizing transportation costs, and improving overall supply chain efficiency.

• True

• False

What does responsiveness refer to in supply chain management?

• Minimizing inventory costs

• Satisfying customer requirements in a timely manner

• Maximizing information technology usage

• Anticipating customer needs in advance