Exploring Logistics and Supply Chain

What is a supply chain and its key components?

• Involves only transportation and logistics services.

• Consists of raw materials and finished goods only.

• Only includes manufacturers and retailers.

• A supply chain consists of suppliers, manufacturers, warehouses, distribution centers, retailers, and customers.

List and describe three expansion options for entering a new market.

• Online Marketplaces: Selling exclusively through e-commerce platforms.

• 1) Direct Exporting: Selling products directly to customers in the new market. 2) Joint Ventures: Partnering with local firms to share resources. 3) Franchising: Allowing local entrepreneurs to operate under the brand.

• Acquisition: Buying a local company outright.

• Licensing: Selling the rights to use a product design.

What criteria should be considered when selecting a location for a new facility?

• Historical significance of the area

• Proximity to competitors

• Proximity to suppliers and customers, availability of skilled labor, transportation access, local regulations and taxes, utility availability, and market conditions.

• Availability of recreational facilities

Explain the concept of Material Requirements Planning (MRP).

• Material Requirements Planning (MRP) is a system for managing manufacturing processes by calculating material needs based on production schedules.

• A software for managing customer relationships in retail.

• A financial planning tool for budgeting production costs.

• A method for tracking employee performance in manufacturing.

What is a Bill of Material (BOM) and its significance in manufacturing?

• A Bill of Material (BOM) is a marketing strategy for product promotion.

• A Bill of Material (BOM) is a financial report for budgeting purposes.

• A Bill of Material (BOM) is a detailed list of materials and components needed for manufacturing a product, crucial for inventory management and production efficiency.

• A Bill of Material (BOM) is a list of customer feedback for product improvement.

Differentiate between a push system and a pull system in supply chain management.

• A push system reacts to customer orders, while a pull system anticipates future sales.

• A push system produces based on forecasts, while a pull system produces based on actual demand.

• A push system is more flexible than a pull system, allowing for quicker adjustments.

• A push system relies solely on inventory levels, while a pull system ignores demand.

How does demand forecasting impact supply chain decisions?

• Demand forecasting is solely used for financial planning.

• Demand forecasting only affects marketing strategies.

• Demand forecasting directly influences inventory management, production planning, and resource allocation in the supply chain.

• Demand forecasting has no effect on production schedules.

What role does inventory management play in logistics?

• Inventory management is only relevant for retail businesses.

• Inventory management plays a critical role in logistics by optimizing stock levels, reducing costs, and ensuring timely delivery.

• Inventory management eliminates the need for transportation in logistics.

• Inventory management is solely focused on marketing strategies.

Describe the importance of supplier relationships in supply chain management.

• Supplier relationships are primarily about negotiating prices.

• Supplier relationships are only important for large companies.

• Supplier relationships have no impact on delivery times.

• Supplier relationships are vital for ensuring quality, cost efficiency, and reliability in supply chain management.

How can technology improve efficiency in logistics and supply chain operations?

• Reducing the number of employees in logistics

• Increasing manual paperwork for tracking

• Technology improves efficiency in logistics and supply chain operations by automating processes, enabling real-time tracking, utilizing data analytics, and enhancing communication.

• Limiting communication to email only