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BA7051- Logistics & Supply Chain Management

Question Bank






What is a supply chain?

A supply chain is a network of all parties involved, either directly
(or) indirectly, in fulfilling a customer request. The supply chain includes
Define LSCM
Logistics management is that part of the supply chain that plans,
implements, and controls the efficient, effective forward and reverses
fow and storage of goods, services, and related information between the
point of origin and the point of consumption in order to meet customer
What is the objective of supply chain?
To maximize the overall value generated.
To maximize the overall profit.
What is supply chain surplus?
Supply chain surplus is the value addition by supply chain
function of an organisation. It is calculated by the following formula:
Supply chain surplus = Revenue generated from a customer - Total cost
incurred to produce and deliver the product.
Write any three importance of SCM
Improves customer satisfaction as well as service
Reduces inventory costs
Increases cash flow
Provides better medium for information sharing between partners
Improves bottom line ( decreasing the use of fixed assets in the supply
Factors to be used to measure supply chain management
List down the supply chain drivers
1. Logistic drivers

2. Cross functional drivers



What is value?
The value a supply chain generates is the difference between what the final
product is worth
to the customer and the costs the supply chain incurs in filling the customers


Two process views of SC

Push/ pull strategy
Cycle strategy
10) What are the benefits of supply chain?
Lower costs
Improved quality
Higher profit margins
Better customer service
Efficient manufacturing
Creation of better facilities for manufacturing, product design research
11) What is a strategic fit?
Consistency between customer priorities of competitive strategy
& supply chain capabilities specified by the supply chain strategy
Competitive and supply chain strategies have same goals.
EG of strategic fit- Dell
12) Draw the supply chain structure

13) What is supply chain management (SCM)?

SCM is the term used to describe the management of the fow of materials,
information, & funds across the entire supply chain, from suppliers to
component producers to final assemblers to distribution (Warehouses &
Retailers), and ultimately to the consumer.
14) What is the objective of supply chain management?
Objective of SCM is to be able to have the right products in the right
quantities (at the right place) at the right moment at minimal cost.
15) Importance of supply chain
Reduced inventories along the chain.
Better information sharing among the partners.
Planning being done in consultation rather than in isolation.
Supply chain design, planning & operation decisions play a
significant role in the success (or) failure of a firm.
16) What are the three decision phases in supply chain?
Supply chain strategy (or) design.
Supply chain planning.
Supply chain operation.
17) List the four process cycles
Customer order cycle
Replenishment cycle.
Manufacturing cycle.
Procurement cycle.
18) List the supply chain macro processes in a firm
Customer Relationship Management.
Internal Supply Chain Management.
Supplier Relationship Management.

19) List the customer order process

Customer Arrival.
Customer order entry.
Customer order fulfilment.
Customer order receiving.
20) List the procurement process
Component order arrival.
Production scheduling.
Manufacturing (or) shipping.
21) What is push/pull view of SC process?
The processes are divided into two categories depending on
whether they are executed in response to a customer order (or) in
anticipation of customer orders.
22) What are the process views of a supply chain?
A supply chain is a sequence of processes and fows that take place
within and between different stages and combine to fill a customer need
for a product.
23) What is cycle view of SC processes?
A cycle view of the supply chain clearly defines the processes
involved and the owners of each process.
24) What is customer relationship management?
All processes that focus on the interface between the firm and its
Customer relationship management (CRM) is an approach to
managing a company's interactions with current and future
customers. It often involves using technology to organize, automate,
and synchronize sales, marketing, customer service, and technical
The CRM aims to facilitate the placement and tracking of orders.
25) What is the supplier relationship management?
All processes that focus on the interface between the firm and its
The SRM aims to arrange and manage supply sources for various
goods and services.
Supplier relationship management (SRM) is the discipline of
strategically planning for, and managing, all interactions with third
party organizations that supply goods and/or services to an
organization in order to maximize the value of those interactions.
26) What is logistics management?
Logistics management includes the design and administration of
systems to control the flow of material, work-in-process, and finished
inventory to support business unit strategy.
27) What is SCM Strategy?
A supply chain strategy is an enabler of business strategy. A
well executed SC
strategy results in value creation for the organization. It establishes how
the organization has to work with supply chain partners including
suppliers, distributors and customers.
28) Define Business Strategy
A business strategy is the means by which it sets out to achieve its
desired ends (objectives). It can simply be described as a long-term
business planning. The business strategy involves leveraging the core

competencies of the organisation to achieve a defined goal or objective. It

also includes the analytic and decision making process surrounding what
to offer (products, services), when to offer (timing, business cycle)
and where to offer (markets and segments).

29) Define Sourcing

Sourcing is the "location, acquisition and management of all the
vital inputs required for an organization to operate. This includes raw
materials, component parts, products, labour in all its forms, location and
30) What are the components of sourcing decisions?
In house or outsource
Supplier selection

Sourcing related metrics
31) What is make vs. buy decision?
The primary activity of supply chain consists of inbound and
outbound logistics,
sales and
include procurement, technology development, and
human resource management. Make vs. buy decision looks at each of
these activities and examines whether they can be done internally or can
be outsourced to an external party.
32) What are the functions of SCM
Defining business boundaries and relationships
Managing demand and supply
Selling system interface
Manufacturing system interface
Product design interface
33) Comparison of efficient and responsive supply chain
Primary goal
Lower cost
Quick response
Product design
Minimum product Modularity to allow
cost margins
High utilization
Capacity flexibility
strategy strategy Minimize inventory Buffer inventory
34) Define Cycle time in SCM?
The total time it would take to satisfy a customer order if all
inventory levels were zero. It is calculated by adding up the longest lead
times in each stage of the cycle.
35) Define Risk Management in SCM
Supply chain risk management (SCRM) is "the implementation of
strategies to manage both everyday and exceptional risks along the supply
chain based on continuous risk assessment with the objective of reducing
vulnerability and ensuring continuity."
36) Write short note on SCM Sustainability?
Supply chain sustainability is a holistic perspective of supply
chain processes and technologies that go beyond the focus of delivery,
inventory and traditional views of cost. This emerging philosophy is based on
the principle that socially responsible products and practices are not only
good for the environment, but are important for long-term profitability.
37) Write short note on supply Chain Strategy
A supply chain strategy determines the nature of procurement of raw
materials, transportation of materials to and from the company, manufacture
of the product or operation to provide the service, and distribution of the

product to the customer, along with any follow-up service

specification of whether these processes will be performed in-house or

38) What is meant by facility Decisions

decentralize to be more responsive. Other issues are quality of
life, cost of workers, cost of facility, infrastructure, taxes etc.
Capacity: excess capacity allows a company to be more responsive
to changes in the level of demand, but at the expense of efficiency.
Manufacturing methodology
Decisions between a product or functional focus and between
fexible or dedicated capacity.
39) List the Six elements of SCM Strategy
Risk management
Continuous improvement
40) What are the various enabling Techniques in SCM
It refers to the techniques which can be used and integrated throughout
the supply chain.
Electronic data interchange (EDI)
The internet
Enterprise resource planning (ERP)
The supply chain management software (SCM)
41) Define distribution network
A distribution network is the system a company uses to get products from
the manufacturer to the retailer. A fast and reliable distribution network is
essential to a successful business because customers must be able to get
products and services when they want them.
42) What is returnability
Returnability can be defined as the ease with which a
customer can return unsatisfactory merchandise and the ability of the
network to handle such returns.
43) Define value addition
The purpose of supply chains is to add value to production and distribution.
Depending upon the markets and the value chains they are servicing,
supply chains can be differentiated according to criteria such as costs,
time reliability and risk. Efficient logistics contributes to added-value in four
major interrelated ways:
costs. Derived from the improved efficiency of
manufacturing with appropriate shipment size, packaging and inventory
levels. Thus, logistics contributes to the reduction of production costs by
streamlining the supply chain.
Location. Logistics adds value by taking better advantage of various
locations, implying access to expanded markets (more customers) and
lower distribution costs.
Time. Added value derived from having goods and services available
when required along
the supply chain (e.g. lower lead times) with better inventory and
transportation management.
Control. Added value derived from controlling most, if not all, the stages
along the supply chain, from production to distribution. By better
synchronizing cycles and lead times, logistics enables better marketing

and demand response, thus anticipating fows and allocating distribution

resources accordingly.
44) What is Presale
This is one aspect of value addition. This is important especially when a
new product is launched in the channel. The channel members can be
empowered by educating them about
New products
Marketing campaigns

Product availability
Training to internal staff about the latest product offering and
45) What is Value addition
The enhancement to a product or service by a company before the
product is offered to
customers. It refers to the additional value of a commodity over the cost of
the commodities used to produce it from the previous stage of production.
It can be said as to economically add value to a product and form
characteristics more preferred in the marketplace.
Two main types of value
Innovation (improving the existing processes)
Distribution (service)
46) What is post sale
Value addition does not end with sales. It extends to the post delivery
phase also. The distributor therefore
has to put in place systems to track products under warranty and
take steps to be closer to the channel partners as well as the
provide support at the lowest cost
Launch upgrades or replace existing products when they are phased
47) What is facility Location
Facility Location is the right location for the manufacturing facility, it will
have sufficient access to the customers, workers, transportation, etc. For
commercial success, and competitive advantage following are the critical
Overall objective of an organization is to satisfy and delight customers
with its product and services. Therefore, for an organization it becomes
important to have strategy formulated around its manufacturing unit. A
manufacturing unit is the place where all inputs such as raw material,
equipment, skilled labors, etc. come together and manufacture
for customers. One of the most critical factors determining the
success of the manufacturing unit is the location
48) What is AIS
The Automatic Identification System (AIS) is an automatic tracking system
used on ships and by vessel traffic services (VTS) for identifying and locating
vessels by electronically exchanging data with other nearby ships, AIS base
stations, and satellites.
49) What is Decision Tree
A decision tree is a graphic device used to evaluate decision making under
uncertainty. It is used to evaluate supply chain design decisions given
uncertainty in prices, demand, exchange rates and infation. A decision model
represents our understanding of an evaluation situation. There are three types
of nodes in a decision tree:
Decision nodes, represented by squares, are variables or actions that
the decision maker controls.
Chance event nodes, represented by circles, are variables or
events that cannot be controlled by the decision maker.
Terminal or end nodes, represented in a decision tree diagram by
unconnected branches, are endpoints where outcome values are attached.

By convention, the tree is drawn chronologically from left to right

and branches out,
like a tree lying on its side. Decision tree analysis language includes
colourful biological analogies. The starting (usually) decision node is
called the root, and the radial lines are called branches (sometimes
twigs). The terminal nodes are sometimes called leaves, and an overly
complex tree bears the label, a bushy mess.
The decision trees are commonly used in operations management
specifically in decision analysis to help identify a strategy most likely to reach
a goal.

50) Define Uncertainty

Uncertainty can be defined as the deviation from the expected outcome. It
is a comprehensive term which considers situations which are both
positive (chance) and negative(threats). The uncertainty is primarily
affecting the supply chain in four ways:
inventory levels;
Increasing leadtimes; and
Reducing speed to
51) What are the factors influencing network decision






Customer response time and local

Cost of logistics and

52) Write short note on Optimized network
Optimization models come in a wide variety of complexity and
sophistication, with prices to match. They are typically linear or mixed-integer
programs that are capable of determining an optimal distribution network
based upon the data, assumptions, and parameters provided. Changes to any
of the assumptions, parameters, or data will cause the model to yield a
different result. Therefore, they are very dependent on the quality of the data
and parameters and the experience of the individual performing the
modeling analysis. An optimization-modeling program is more sophisticated
than a Centroid analysis, but it is limited to evaluating a static range of
variables. If a network can be described by summarized data, or by looking
individually at one or more slices in time, then an optimization model is very
53) What is drop shipping:
In this type of distribution network product is shipped directly from the
manufacturer to the end customer, bypassing the retailer. Information fows
from the customer via the retailer, to the manufacturer, and product is
shipped directly from the manufacturer to the customer
54) What is in-transit merge:
It combines pieces of order coming from different locations so
that the customer gets a single delivery. Eg dell
55) Four phases in network design decisions:
Define a supply chain strategy

Define the regional facility configuration

Select a set of desirable potential sites
Location choices
56) Models for facility location:
Network optimization model: Network optimization solves for the
optimal supply chain
network design with the lowest total cost structure given a set of
constraints. Network optimization is typically defined into three segments:
Sourcing, Manufacturing and Distribution optimization.
57) What are the obstacles to co ordination in a supply chain?


Information processing



58) What is the role of IT in sourcing?
Design collaboration
Source (sourcing software assists in the qualification of suppliers)
Negotiate (negotiation with suppliers)
Buy (the actual procurement of materials from suppliers)
Supply collaboration
59) What is logistics information system
Logistics information systems are a subset of the firms total information
system, and it is
directed to the particular problems of logistics
decision making. There are three distinct elements
that make up this system:
and the
The inputs are data items needed for planning and operating logistics
system obtained from sources like customers, company records, and
published data and company personnel.
Management of the database involves selection of the data to be
stored and retrieved,
choice of the methods of analysis and choice of the basic dataprocessing procedures. The Outputs
The outputs of a logistics information
system include:
summary reports of cost or
performance statistics,
status reports of inventories or
order progress,
exception reports that compare desired performance with
actual performance,
Reports that initiate
60) Write short note on sources of uncertainty
There are three distinct sources of
Supply uncertainty caused by variability of supplier performance
Process uncertainty caused by problems in the manufacturing facility
Demand uncertainty caused by irregularity in customer orders.
61) List the components of inventory
Cycle Inventory
Safety Inventory
Seasonal Inventory
62) What is inventory?

Inventory refers to all the raw materials, work in progress and

finished goods within a supply chain.
In other words, inventories are stocks of the product a firm is
manufacturing for sale
and components that make up the product. Thus, inventories form a
link between the production and sale of the product.
63) What are the different categories of inventory
These are those goods which have been purchased and stored for future
productions. These are the goods which have not yet been committed to
production at all.
These are the goods which have been committed to production but the
finished goods have not yet been produced. In other words, work-inprogress inventories refer to semi- manufactured products.

These are the goods after production process is complete. Say, these are
final products of the production process ready for sale. In case of a
wholesaler or retailer, inventories are generally referred to as
merchandise inventory.
64) What is the objectives of inventory management
There are two main objectives of
inventory management:
1. Making Adequate Availability of
The main objective of inventory management is to ensure the availability
of inventories as per requirements all the times. This is because both
shortage and surplus of inventories prove costly to the organization.
Minimising Costs and Investments
in Inventories:
Closely related to the above objective is to minimize both costs as well as
volume of investment in inventories in the organization. This is achieved
mainly by ensuring required volume of inventories in the organization all
the times.
65) What is the motive of holding inventory?
There are three major motives behind holding
inventories in an enterprise:
a) Transaction Motive: an enterprise maintains inventories to avoid
bottlenecks in its production and sales.
b) Precautionary Motive: Inventories are also held with a motive to have a
cushion against unpredicted business.
Speculative Motive: An enterprise may also hold inventories to take the
advantages of price fuctuations. Suppose, if the prices of raw materials
are to increase rather steeply, the enterprise would like to hold more
inventories than required at lower prices.
66) What are the costs of holding inventory?
Material cost: These include costs which are associated with placing of
orders to purchase raw materials and components.
Carrying cost: These include costs involved in holding or carrying
inventories like insurance charges for covering risks, rent for the foor
space occupied, wages to labourers, wastages, obsolescence or
deterioration, thefts, pilferages, etc.
67) What is bull whip effect?
The bullwhip effect is an observed phenomenon in forecast-driven
distribution channels. It refers to a trend of larger and larger swings in
inventory in response to changes in customer demand, as one looks at
firms further back in the supply chain for a product.
68) What is safety stock?
Safety stocks are maintained as a safeguard against uncertainities of
demand and supply. In countries where transportation and supply
uncertainities are large, safety stock constitutes a significant portion of a
firms inventory.
69) What is risk pooling?
Risk pooling suggests that demand variability is reduced if one
aggregates demand across locations because as demand is aggregated
across different locations, it becomes more likely that high demand
from one customer will be offset by low demand from another. This

reduction in variability allows a decrease in safety stock and therefore

reduces average inventory.
70) What is cycle inventory?
Cycle inventory is the average inventory in a supply chain due to
either production or purchases in lot sizes that are larger than those
demanded by the customer.
An inventory control and management practice that refers to a
process of regularly scheduled
Inventory counts (usually daily) that "cycles" through your
inventory. Using a volume based cycle count strategy, users determine
how often certain items or locations are counted using frequency or
dollar values segregated into ABC categories. Another

method is geographic based where complete counts are sequenced

to allow for a complete cycle through the facility within a given time
frame. Cycle counting can eliminate the need for wall to wall physical
counts and can maintain a higher level of on-going accuracy.
71) What is inventory holding cost?
Holding cost is the percentage of the cost of a product and is the sum of
the cost of capital,
spoilage cost, handling cost, occupancy cost and
miscellaneous cost.
72) What is vendor managed inventory?
Vendor-managed inventory (VMI) is a business model in
which the buyer of a product (business) provides certain information to
a vendor (supply chain) supplier of that product and the supplier takes full
responsibility for maintaining an agreed inventory of the material, usually
at the buyer's consumption location (usually a store). A third-party
logistics provider can also be involved to make sure that the buyer has the
required level of inventory by adjusting the demand and supply gaps.
73) What is Multi-echelon inventory?
Multi-echelon inventory optimization looks at inventory levels
holistically across the
supply chain while taking into account the impact of inventories at
any given level or echelon on other echelons. For example, if the product
sold in a retailers outlet is received from one of its distribution centers,
the distribution center represents one echelon of the supply chain and the
outlet another one. It should be clear that the amount of stock needed at
the outlets is a function of the service received from the distribution
center. The better the
service that is provided upstream, the
smaller the protection that is needed downstream. The goal of multiechelon inventory optimization is to continually update and optimize safety
stock levels across all of these echelons.
Multi-echelon inventory optimization represents the state of the art
approach to optimize inventory across the end to end supply chain.
Modeling multiple stages allows other types of inventory, including cycle
stock and prebuild along with safety stock due to time phased demands,
to be accurately predicted. As part of inventory optimization, supplier
performance, customer service and internal asset metrics should be
continuously monitored to enable continuous improvement.
74) What is single echelon approach?
A sequential single-echelon approach forecasts demand and determines
required inventory for each echelon separately. Multi-echelon inventory
optimization determines the correct levels of inventory across the network
based on demand variability at the various nodes and the performance
(lead time, delays, service level) at the higher echelons.
75) What is lot or batch size?
A lot or batch size is the quantity that a stage of a supply chain
either produces or purchases at a time.
76) What are facilities?
The actual physical locations in the supply chain network when
product is stored, assembled, (or) fabricated.
77) What is sourcing in SC?
It is the choice of who will perform a particular supply chain activity
such as production, storage, transportation, or the management of
78) Differentiate between Centralized and decentralized warehousing.

In centralized warehousing, a single warehouse serves the whole

market, while in
decentralized warehousing the market is divided into different zones, each
of which is served by a different (smaller) warehouse.
Decentralized warehousing leads to reduced lead times since
warehouses are much closer to customers. On the other hand, centralized
warehousing is characterized by lower facility costs because of larger
economies of scale.

79) What is warehouse management system?

Warehouse Management System (WMS): is a key part of the supply
chain and primarily aims to control the movement and storage of materials
within a warehouse and process the associated transactions, including
shipping, receiving, put away and picking. The systems also direct and
optimize stock put away based on real-time information about the status
of bin utilization. A WMS monitors the progress of products through the
warehouse. It involves the physical warehouse infrastructure, tracking
systems, and communication between product stations.
80) What are the types of facilities?
There are two major types of facilities. They are
Production sites
Storage sites
81) Define TL
Truckload shipping is the movement of large amounts of
homogeneous cargo, generally the amount necessary to fill an entire semitrailer or intermodal container. A truckload carrier is a trucking company
that generally contracts an entire trailer-load to a single customer. This is
as opposed to a less-than truckload (LTL) company that generally mixes
freight from several customers in each trailer. One advantage Full
Truckload (FTL) carriers have over Less than Truckload carriers is that the
freight is never handled en route, whereas an LTL shipment will typically
be transported on several different trailers.
82) Define LTL
A term common to the shipping industry is LTL or less than truck load.
That means that the item being shipped will not take up the entire available
space on the truck. FTL or full truck load means that the load will fill up
the entire truck. Shippers that accommodate full truck loads cater to those
customers who typically ship in bulk. The large amount of goods being
shipped offsets the cost of a larger truck.
83) What are the different modes of transportation?
Supply chains use a combination of the following modes of transportation
Package carriers
84) What is intermodal transportation?
Intermodal transportation is the use of more than one mode of
transport to move a
shipment to its destination. A variety of intermodal combinations are
possible with the most common being truck/rail.
85) What are various considerations when designing a transportation
Should transportation be direct or through an intermediate site
Should the intermediate site stock product or only serve as a cross
docking location
Should delivery route supply a single destination or multiple
86) What is milk run?

Milk run is a route on which a truck either delivers product from a single
supplier to multiple retailers or goes from multiple suppliers to a single
buyer location.
87) What is information in SC?
Information consists of data and analysis concerning facilities,
inventory, transportation, costs, prices and customers throughout the
supply chain.

88) What is the role of transportation in SC?

It is facilities moving inventory from point to point in
the supply chain. Transportation is an important supply chain driver
because products are rarely produced and consumed in the same
location. Transportation is a significant component of the costs incurred by
most supply chains.
89) What is freight forwarder?
A freight forwarder, forwarder, or forwarding agent, also known as a nonvessel operating common carrier (NVOCC), is a person or company that
organizes shipments for individuals or corporations to get goods from the
manufacturer or producer to a market, customer or final point of
distribution. Forwarders contract with a carrier to move the goods. A
forwarder does not move the goods but acts as an expert in the logistics
network. A forwarder contracts with carriers to move cargo ranging from raw
agricultural products to manufactured goods. Freight can be booked on a
variety of shipping providers, including ships, airplanes, trucks, and railroads.
It is not unusual for a single shipment to move on multiple carrier types.
International freight forwarders typically handle international shipments.
International freight forwarders have additional expertise in preparing and
processing customs and other documentation and performing activities
pertaining to international shipments.
90) Define reverse logistics.
Reverse logistics is the process of moving goods from their typical
final destination for the purpose of capturing value, or achieving proper
disposal to the satisfaction of the customer or consumer
91) Define Break bulk
In shipping, break bulk cargo or general cargo are goods that must
be loaded individually, and not in intermodal containers nor in bulk as with
oil or grain. Ships that carry this sort of cargo are often called general cargo
ships. The term break bulk derives from the phrase breaking bulkthe
extraction of a portion of the cargo of a ship or the beginning of the unloading
process from the ship's holds. These goods may not be in shipping containers.
Break bulk cargo is transported in bags, boxes, crates, drums, or barrels. Unit
loads of items secured to a pallet or skid are also used.
92) Define Cross-dock.
Cross-docking is a practice in the logistics of unloading materials from an
incoming semi- trailer truck or railroad car and loading these materials
directly into outbound trucks, trailers, or rail cars, with little or no storage
in between. This may be done to change the type of conveyance, to
sort material intended for different destinations, or to combine material from
different origins into transport vehicles (or containers) with the same
destination or similar destinations.
93) List the factors infuencing the design of packaging.
The type of product to be packed
The cost of the product
The amount of handling that the product has to go through
Package should facilitate handling
Ability to be reused
Ability to be disposed
Its effect on environment
94) What are the types of packaging?
Packaging is classified into two types:

Consumer oriented packaging in which packaging is
designed for consumer
convenience and appeal, marketing considerations and display.
Logistic oriented industrial packaging focuses on the handling
convenience and protection during transportation, material handling and

95) What are the stages in industrial packaging?

First stage is packaging the product itself. For example, soft drinks are
packaged in cans.
Second stage is called Master cartons. In this case the packaged
products are packed in larger cartons so that it can help in quantity
The third stage is that of formation of unit load. Here the master cartons
are consolidated into a single, large unit to facilitate handling,
transportation, protection and storage. This process may involve
palletization, where the master cartons are mounted onto a standard size
rigid platform.
96) Differentiate between inbound and outbound logistics.
Inbound logistics: The management of materials from suppliers and
vendors into production processes or storage facilities.
Outbound logistics: The process related to the movement and storage of
products from the end of the production line to the end user
97) Design options or types of distribution network:
Manufacturer storage with direct shipping
Manufacturer storage with direct shipping and in-transit merge
Distributor storage with package carrier
delivery Distributor storage with last mile
delivery Manufacturer/Distributor storage
with customer pickup Retail storage with
customer pickup
98) What are the elements of customer service/needs?
Response time
Product variety
experience Order
99) Elements of cost of meeting customer needs:
Facilities and
Role of network design in the supply chain:
Facility role
Market and supply allocation
factors infuencing network design decisions:
Strategic factors

What is 3PL?
A third party logistics provider that performs one or more of the logistics
activities relating to the flow of product, information and funds that could
be performed by the firm itself.
Eg: UPS & FedEx
Define 4PL?

4PL is an integrator that assembles the resources, capabilities and

technology of its own organization and other organizations to design,
build and run comprehensive supply chain solutions.
What are the risks of using a third party?
The process is broken
Underestimation of the cost of co-ordination
Reduced customer/supplier contact
Loss of internal capacity and growth in third party power
Leakage of sensitive data and information
Ineffective contracts
What is the need for organization structure?
Logistics /supply chain is a vital activity that must be carried out in
every firm. Providing organizational structure to logistics/SC defines the
necessary lines of authority and responsibility to ensure that goods are
moved according to plan. The balance between customer service and
the costs to produce can be effectively monitored if there is an exclusive
structure. Areas such as order processing, traffic and warehousing can be
individually supervised for better control. A manager is often required to
coordinate the combined operations and achieve the highest level of
What are the various stages of organizational
Organizational development has been evolving over the years.
Stage1: observed in the early 1970s represented clustering of activities
that were important to logistics management.
Stage 2: organization was directed at formal structures where a top level
executive was placed in charge of the relevant logistics activities.
Stage 3: organization structure referred to full integration of
logistics activities.
Stage 4: processes such as product scheduling, work in progress inventory
management and coordination of just in time scheduling both inbound and
outbound are now included in the scope of integrated logistics.
What are the different organization choices?
The organization choices can be categorized as informal,
semiformal and formal
Informal: There is no change in organizational structure but rely
on compulsion to accomplish coordination among activities and people
responsible for them.
Semiformal: A logistician or supply chain coordinator is assigned to
manage the projects that involve the supply chain and the other functional
Formal: clear lines of authority and responsibility are established for
What are the three corporate strategies followed
by organizational design?
The three corporate strategies are
Process strategy the objective is to achieve maximum efficiency
in moving goods from raw materials to finished goods state.
Market strategy has a strong customer service orientation
Information strategy primary objective is the coordination of
logistics activity
the dispersed network (network of dealers
What is organizational positioning?
Organizational positioning refers to the placement of logistics
activities in the
structure. Positioning is carried out to effectively
manage thePositioning
logistics is based on whether the organization is
or staff or line and large or small organization.
Differentiate between centralized and decentralized

A centralized organization groups logistics activities at the corporate

level for serving all product groups. It keeps close control over
logistics activities.
A decentralized organization puts the responsibility for logistics at
the product group
or division level. It allows quicker and more customised logistics
response to customer needs.
Differentiate between staff and line organization?
Staff organization: the logistician is placed in a consulting role to the
other functions such as marketing and operations.
Line organization: A line position is directly involved in the day-today operations of the organization, Line positions are occupied by
line personnel and line managers. Line personnel carry out the
primary activities of logistics department and are considered
essential to the basic functioning of the organization.
What is interfunctional management?
When all the activities of a firm are economically interrelated to
departmentalize along functional lines promotes conficts, in order
to deal with such conficts interfunctional management is setup. A
shared interface exists so that collective management is made
possible among the functional areas to prevent suboptimal decisions
from being made.
What is interorganizational management?
Supply and distribution policies of any one firm in the distribution
channel can affect the performance of other firms in the channel it is
advantageous to view the channel as a single entity and manage it
to the benefit of all members involved.
What is superorganization?
The superorganization is a group of firms related through their
business processes and mutual objectives (satisfying customers and
maximizing profits) but these firms are legally separate. They share
a common interest in individual decisions made by each since the
decisions of other firms can affect their performance and vice versa.
What is an alliance?
The high cost of logistics may force firms to collaborate with firms having
excess capacity, strategic facility locations to markets, desirable
technology and outstanding administrative capabilities. Forming a logistics
alliance or partnerships may benefit both parties by strengthening its own
competitive position.
What is process framework?
The control process is in part one of monitoring changing conditions with
the anticipation that corrective action may be needed to realign actual
performance with planned performance. The control process framework
ensures accomplishment of the desired goals.
What are the types of control systems?
categorized into

Open loop systems human intervention is present in

the action of comparing the actual and desired performance and in
the action to reduce process error.

Closed loop systems the decision rule is used as manager

surrogate in closed loop systems. The decision rule acts as the
manager would if they had observed the performance error.
What is control information?


An effective logistics control system requires accurate, relevant and

timely information about activity or function performance. The main
sources of this information are audits and various reports of logistics
Explain the drivers of SCM?
Describe the concept of SCM And Logistics Management

Explain the SCM enabling technologies
Explain the Evaluation Study of LSCM
Explain the role of SCM Manager
Discuss the impact of Effective performance of Logistics and SCM
Explain clearly about the SCM Strategy
Describe the Advantages and disadvantages of SCM
Describe the Concept of SCM And Logistic Management?
10. Explain the global application in SCM Value Chain Trends?
11. Explain the importance and note of distribution network design
12. Explain the fundamental of Logistics Management
13. Explain the Current trends in Logistics automation?
14. Explain the Logistics Outsourcing?
15. Discuss the impact of uncertainty on network design
16. Explain how network design decisions are made using decision trees
17. Explain the network design planning
18. Explain the performance measure of logistics network model
19. Explain the location analysis techniques
20. Describe the term LIS
21. Describe the design options for a distribution network
22. Describe the various types of warehousing
23. Explain the Implementation of Sourcing
24. Explain Bull whip effect
25. Explain the concept of Coordination in supply chain
26. Explain the supply chain redesign on the inventory
27. Explain the role of Inventory Management
28. How do you manage cycle inventory and safety inventory
29. Describe about vendor managed inventory
30. Explain the term multi echelon inventory
31. Explain the role of warehousing
32. Explain the models of facility Locations
33. Explain 3PL and 4PL
34. Explain the term shipping container Labeling
35. What are the different drivers of transportation discuss in detail
36. What is cross dock? Discuss its significance in logistics management
37. Discuss about the various types of transportation utilized in Logistics
38. What is industrial packaging? Discuss its significance in logistics
39. What is 3PL. discuss the advantage and disadvantage of using third party
40. Elucidate the need and development of organization structure in logistics
41. Distinguish between interfunctional and interorganizational
management in logistics management
42. Explain the control process framework in detail
43. What is organizational positioning? Explain the basis of organizational
44. Discuss in detail the different organizational choices
45. What are the different sources of control information? Discuss the different
types of audit.